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The Jeff Dixson Show "The Retirement Coach"
Coaching you to and through retirement
Category: Investing
Location: Portland, Oregon
THE JEFF DIXSON SHOW- is an hour long program that airs weekly on KEX News Talk 1190 and KXL 101.1 FM. Jeff Dixson, “The Retirement Coach”, is the President and Chief Financial Advisor at Northwest Financial & Tax Solutions and has educated thousands ...more
THE JEFF DIXSON SHOW- is an hour long program that airs weekly on KEX News Talk 1190 and KXL 101.1 FM. Jeff Dixson, “The Retirement Coach”, is the President and Chief Financial Advisor at Northwest Financial & Tax Solutions and has educated thousands across the Portland metro area on how they can better preserve protect and grow their assets. Visit jeffdixsonshow.com to learn more about Jeff and Northwest Financial & Tax Solutions.
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Every week Jeff Dixson, "The Retirement Coach", educates listeners throughout the Portland, Oregon metro area about planning fo...


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July 27, 2018 02:19 PM PDT

Worried about running out of money during retirement? Here are ten things that just might make it happen

July 25, 2018 02:23 PM PDT

Welcome to The Jeff Dixson Show “coaching you to and through retirement” I am your host “The Retirement Coach”, Jeff Dixson. I am joined today as always by my co-host, a Financial Advisor at Northwest Financial & Tax Solutions, Mr. David Topper.
David, how are you today?

David:
Doing great, Jeff.
Ready for another show. We have a lot of critical information to pack into one short hour. Today… we’re talking about the nine critical questions you must answer, before you retire.

Jeff:
Great David…Let’s dive in.

Folks… how do you envision your lifestyle in retirement?

What do you envision yourself doing?

Traveling to faraway places around the world?

Spending more time with your kids and grandkids?

Playing golf every day?

The next question is…how will you pay for all this when you’re no longer collecting a paycheck?

How will you pay for your most basic living expenses…without cannibalizing your entire retirement savings?

As you plan for your retirement, one of the most important things for you to know is … how much income will I need to generate, in retirement, to pay for what I need?

How much income will you need to maintain the lifestyle that you’ve worked so hard to have?

David:
It seems like such a simple question, but it is one that is very difficult to answer…

Jeff:
This is a question we get every day from people we meet with.

And it IS a great question to be asking yourself.

In fact…it might be the single most important question you should ask yourself if you’re flirting with the idea of retiring in the next 5 years, or sooner.

Today on the show we want to give you some tools to find the answer to that question for yourself.

Ultimately, you are the only one who can answer that question.

The truth is…there are a lot of unknowns facing all of us in retirement.

How do you determine how much income you’ll need every single month?

How do you account for any unexpected medical or healthcare expenses?

Or how do you account and adjust for inflation…so your buying power doesn’t plummet 10 or 20 years from now?

Today on the show, I’m going to walk you through, step-by-step, how to determine how much income you’ll need in retirement.

I’m going to reveal 9 critical questions you must ask yourself, to get to that answer.
So get your pen and paper out and take notes, if you can.

These are the same 9 questions we ask of each of our prospective clients.

And the answers to these 9 critical questions will bring some real clarity to what is a cloudy and complicated issue for many people.

This short and simple exercise will probably also relieve a lot of fears and stress you have about retirement.

David:
Jeff, one thing we already know: generating income in retirement is a not the same thing as saving and investing for retirement.

Let’s explain the difference.

Jeff:
Happy to.
We all know that there are different periods of your life.

Your early working years --- your 20’s 30’s 40’s and early 50’s…
We call this the “accumulation phase” of your life.

During this time, Growth is of highest importance in our minds.

We’re trying to grow our nest egg so we have enough money… making money…. making money…. so we have enough income to have a great lifestyle in retirement.
We want our clients to thrive in retirement, not just survive.

Then…about 5 to 10 years before we retire, we enter the preservation phase of life.

In this phase, you’re decreasing your risk so as not to sabotage your desired retirement timeline.

Finally --- you hit the distribution phase, where you have a carefully orchestrated, strategic and proactive income plan.

Not just systematically drawing down your portfolio and hoping for the best.

The problem is- most people don’t make these transitions and that comes back to bite them down the road.

David:
The question on most people’s minds is “how to estimate how much income you’ll need in retirement.”

What information does somebody need to calculate that number?

Jeff:
There are so many factors you must consider when calculating your retirement number.

Some of the most important ones are:

Your savings habits;
Inflation and life expectancy;
Lifestyle;
Considering what spending is optional;
Planning for shocks like illness or market corrections;
Where you live;
Even how much you pay in taxes!

These are all critical components. The problem is, most people don’t have a plan – they just have a bunch of investments they don’t’ know much about!

Let’s talk about that. If you’re married you actually need three plans for income – not just one.

Plan A- is what if you and your spouse both live to be 100 years old.
That’s a LOT of years to have to finance.

Plan B, and this is usually the most important of the three, is what happens to MRS if MR dies first?

Statistically speaking, women tend to outlive their husbands As one spouse passes away, the cash flow in the household is going to change in a big way.

For starters, she’ll only get one social security check. Will she have his pension, if he had one?
Some pensions are single life only, some pensions the surviving spouse can get all, part or none of it when the first spouse passes away.

Will the income coming in from the remaining sources be able to cover her needs?

If you don’t know, this is what we consider “winging it” and you don’t want any surprises in your income when you’re dealing with the emotional pain of losing a spouse.

Then, we have Plan C- what happens to MR if MRS dies first. Similar to Plan B, will he have enough to get by, with the loss of her income sources?

These are all elements that need to be calculated so that’s why we believe any married couple needs to have 3 income plans.

David:
There are SO MANY things to take into consideration to make sure you have the right plan in place, it can seem daunting.

But we want to make things simple.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

So, let’s continue.
You’ve saved and saved and now you’re ready to take that leap into retirement.

But you haven’t thought about generating income.

All you have is a lump sum of money.

Let’s talk about how to get started.

Jeff:
David, this is critical. We see people day in and day out at our firm and it is a sad reality that the vast majority of them do not have a financial plan for retirement.

As I said earlier - most people have a bunch of investments and they don’t understand them.

They don’t know what they’re invested in, all the fees they pay, the kind of income their investments can produce for them in retirement, the tax implications, or how any of those pieces will affect them down the road.

Finally, most people I speak to don’t know what their exit strategy is.
Anyone can sell you something, but if you don’t know how, when and why you’d get OUT of an investment….. that’s not good.

We hear day in and day out, that the number one concern of people retiring today is living too long or outliving their money.

We want you to have a solid foundation under you, so we know that your bills are covered.

Then, we’ll fund your lifestyle.

We’ll make sure you have money for things like travel or hobbies.

This is where all the pieces come together.

As overwhelming as it might seem, it’s really not that difficult --- and it’s actually pretty easy.

Here’s a huge question many pre-retirees and retirees don’t consider:

If we saw another bad economy and a roller coaster stock market… how would your plan fare?

Since 2009, we’ve had a big recovery, a lot of Federal Reserve stimulus, interest rates near zero percent for a long period of time. The markets are overpriced.

These are all factors that we need to pay attention to.

As much as I’d like to see a consistent, steady, growing economy, frankly, some day there will be turbulence again. It’s the nature of the beast.
I don’t know when, but it doesn’t matter.

What does matter is that you have to plan for it. Period.

This is your hard earned money, and most people deserve a lot more than what they’re getting with their investments.

The problem is, people get apathetic, lazy, stuck in their ways, and they don’t move or change or do anything different… often until it’s too late.

That’s called being reactive rather than proactive.

David:
On the other side of the break – a common retirement belief is debunked. Stay with us.

BREAK

David:
Welcome back to the Jeff Dixson show. Often times, we hear about the old “four percent withdrawal” strategy. It’s a common belief that by sticking to a four percent income stream from your retirement funds, you are safe from running out of money.

Jeff, explain why that strategy is so dangerous today.

Jeff:
The danger with that strategy is that what four percent equals one year might be a lot less the next year.

It’s based on numbers that are outdated and don’t apply to the world we live in today.

Retirees need to switch their mindset from a withdrawal strategy to an income strategy.

With all the volatility we’ve seen over the last 17 years…. The roller coaster ride up and down… the recommended systematic withdrawal rate is now less than 3%!!

In a $1 million portfolio in your IRA or 401k, that 4% withdrawal stream works out to $40,000 a year. But a 3% withdrawal stream is only $30,000.
You see how this works?

That’s a lot of money missing, that’s a lot of income not to have.

It’s another illustration why you need to be working with a qualified financial advisor – and not just going by the old “rules of thumb.”

David:

The vast majority of Americans…and this may include you…are completely lost on the road to retirement.

Like it or not, everyone is on the road to somewhere but most people don’t know where they’re headed.

They may have some investments, but don’t know why they have them or when to adjust them.

Or when they’ll be able to retire.

It’s nothing more than a bunch of guesswork.

And when you think about it…that’s frightening when you consider this is an event that could last 20, 30 even 40 years of your life.

But you have the opportunity to change the course you’re on right now…starting with one phone call.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff let’s talk about the importance of budgeting during retirement. Why is evaluating your current expenses every month so important?

Jeff:
It is probably the biggest item on the checklist when you’re starting to plan your retirement.

We need to know each client and their monthly *fixed* expenses.

These are the “have to have” expenses. Things like mortgage, heat, water – the things you can’t live without.

If you can picture a bucket that has been set out on the fence at the farm that has been used for target practice and has holes all over it.

That’s what most people’s budgets look like these days.

They have money pouring in, and have no idea where it all goes.

So when we analyze your expenses, that’s when we find the “holes in your bucket”.
I will say that I have never told a client what they have to do with their money… but what we want to do is educate and coach you, so we can give you ideas to help you maintain your lifestyle, pay all your bills and leave a legacy after you’re gone.

David:
People ask if they’ll need *less* money every month when they retire, or *more* - and we give everyone the same answer.

Jeff:
Yeah, the answer is…”it depends”. It’s different for every individual, and every situation.

Everybody’s habits change when they make a major life changes such as entering retirement, but the impact of those changes are different for everybody.

I have some clients that say they don’t want to have less money than when they were working.

In fact, some of them say they want to have more!

Because when you’re retired, every day is Saturday!
You can go and spend a lot of money when you’re in retirement!

People want to go, go, go when they retire and do all the things they’ve been putting off… and that takes money!

People won’t have to spend as much on gas, or work clothes or things like that… but they might go out to dinner more, spend more money on their hobbies, and the fun things in life.

So it depends on each individual.

Those are the things…. when you have the right retirement coach…. and they know what questions to ask, that they can use to build a customized plan just for you.

David:
There are many things that can weigh you down in retirement.

Like extravagant travel plans or children who are still financially dependent on you.

Do you factor these expenses in your budget?

Jeff:
You absolutely must factor those things into your budget.
There are three things that are often overlooked – and have the potential to torpedo a retirement plan.

• Inflation – this is the silent killer of retirement plans.
• Unexpected healthcare costs -
• Family issues – things like supporting adult children, divorce, or caring for grandchildren.

There’s one more, however, that *nobody* wants to think about – but can have serious consequences when it comes to a budget.

The death of a spouse.

As I’ve gotten older, I’ve seen more and more of my friends pass away.

On the death of the first spouse, the cash flow of the household changes.

That’s why, you’ve heard me on the show today, talk about the three plans you need in retirement.

Plan A- what if you both live to 100 year old…
Plan B- what happens to MRS if MR dies first?...
And Plan C- what happens to MR if MRS dies first?

This is one that people don’t usually plan for, nor do they think about after the passing of their spouse.

Obviously a lot of emotions are involved during those times, so a financial advisor can really be a big help making sure your retirement doesn’t get derailed at the passing of the first spouse.

David:
If you’re serious about making sure you have the right retirement game plan in place for qualified callers to today’s show, we’re offering The 8 Step Retirement Game Plan COMPLETELY FREE.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

To start the process, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Do you know how much income you’ll need in retirement?
More critical questions to ask – when we return. Stay right there.

BREAK

David:

Welcome back!
Do you know how much income you’ll need in retirement?

If not, listen closely because today we’re sharing the 9 ultimate questions every retiree should ask when it comes to how much income you’ll need, and how to generate it.

Jeff, you’ve mentioned “long-term care” as a major cost in retirement.

Most retirees don’t plan for this - they think Medicare will cover their medical and healthcare expenses.

Let’s talk about reality.

Jeff;
Thinking about long-term care isn’t something that we like to do, but by doing so, we can alleviate the fear of being a burden to our family when our health starts to decline.

A lot of people think their kids will take care of them in their old age. My response to that is…don’t you love your kids?? Why would you do that to them??

Fact is…according to Caregiver-dot-org…70% of all retirees need long-term care at some point

And about Two-thirds of long-term care comes from family members.

A third of the people who end up needing long-term care, end up in skilled nursing centers or assisted living facilities.

Men typically need about 2 years of assistance while women need an average of about 3 and a half years.

Also, realize that there’s a chance you could get denied for long-term care insurance if you wait too long.

Most people are self-insured and I’ve seen million dollar portfolios spent all the way down to nothing on long term care costs. This is something that can completely wipe out an estate.
If that concerns you, and you want to look at long term care insurance, the sweet spot is between 55 and 65

Keep in mind that the older you get, the more expensive it is.

To be completely transparent, I’m not a big fan of traditional long term care insurance. Many of them are very expensive unless you bought it a long time ago.
We’re seeing these prices rise.
I have a mother and father in law living in a private home facility at a cost of about $10,000 a month. That’s today.
Think about what it’s going to be when you need care down the road.

David:
Roughly…how much can long term care insurance cost?

Jeff:
Well it’s certainly not cheap!
• A typical policy for a 55-year-old man will cost about $2,000 per year, which sounds like a lot, but you have to remember how much it costs to get long-term care…
o According to the Assisted Living Federation of America, a room at an assisted living facility costs, on average, $3,600 per month…more than $44,000 per year. Those rates are going up and up.
o If you don’t have a plan for that it could take down your nest egg really quick.
o So you need to be able to sit down with a retirement specialist who can give you all the information you need and see if it makes sense for you.

Premiums have risen 15% in the past two years, and have risen between 30 and 50% in the past five to seven years.

So we’ve seen big increases in costs.

David:
Lots of people wonder: am I saving enough for retirement?

Jeff:
Unfortunately, there is no “magic formula” to determine whether you’re saving enough.
You’ll want to know the answers to some hard questions:
How long will I want – or be able to – work?
How much will it cost me to live in retirement?
What kind of healthcare costs will I face?
The biggest mistake is giving up before you get started, assuming that “things will work out.”
No one can tell you how much risk is “right” — what matters most is what you feel comfortable with.

David:
What if someone is getting close to “retirement age”, and they’re worried they *don’t* have enough saved for retirement? Are they just out of luck, or are there things they can do to recover?

Jeff:
If you’re working with the right retirement coach, this is something that you need to have a serious conversation about!

Listen up, and take notes.
Because I’m about to show you an opportunity to have more income for the rest of your life!

What do most Americans do when they get a bonus or a raise?
They just go out and start spending more!

Instead, here are some steps we think you should take with that money, to improve your situation in retirement!

• Pay off high interest debt- I tell people that you cannot create wealth until you eliminate debt! Credit card debt, consumer debt, any debt you can’t write the interest off on your tax returns.
• Invest in a Roth IRA
• Beef up your 401k contributions
• Make “catch up” contributions, if you’re eligible.

I know…not as exciting as blowing your bonus on a new RV or an extravagant vacation…but the benefits of this practice can pay off in a big way once you hit retirement.

David:
If you overlook any of these things we’re talking about today and you don’t include them in your financial game plan, they can ruin the retirement you’ve always dreamed of.

There are SO MANY things to take into consideration to make sure you have the right plan in place, it can seem daunting.
But today, we want to make things simple.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

Start the process.
Call 1-855-500-RETIRE. That’s 1-855-500-7384.

David:
Jeff, inflation is a very real threat to your lifestyle in retirement.

How can someone protect themselves from inflation?

Jeff:
Great question David- and it’s something that isn’t typically asked because people just don’t think about it! That’s why we’re here – it’s our JOB to think about these things.

The first and best way to plan for inflation - is to simply save more.

Even with an average inflation rate of 3% per year, the cost-of-living doubles in just 23 years.

Inflation is a silent killer!

Think about what things cost 20 or 30 years ago and what they cost today!

So if you think you need $500,000 in today’s money to retire comfortably, 20 years from now you’ll actually need $1 million to maintain that same comfort of living or lifestyle.

Doesn’t it make sense to “build in” more income as you go along the road through retirement?

We love to set up plans where we’re being proactive.
So every 2, 3 4 or 5 years you can turn on another income check.
So as needed you can cover those costs.

Social Security benefits are an inflation protected lifetime income stream, so that helps, but as many of you know, the cost of living increases on Social Security and government pensions have not kept up with the actual rate of inflation.

Many of our clients who have social security and pensions, have other sources for income that they can turn on every 5 or 10 years.

Remain invested even during retirement -- but we can help you make sure you’re invested properly for your age and risk tolerance.

There are plenty of options a financial advisor can walk you through to help with this.

David:
Jeff, let’s talk about the *other* killer of retirement savings that many people just don’t plan for – taxes.
Do you find people typically pay more or less taxes in retirement?

Jeff:
It’s true, David, taxes can have a huge impact on retirees.

If you don’t include taxes in your retirement plan, you could potentially end up with less money in your pockets than you were expecting.

David:
So, what can I do in retirement to minimize my tax bill?

Jeff:
Know how your investments are taxed.

Are they taxed at ordinary income rates, or higher?

Are they tax deferred, tax free or tax advantaged?

Be aware of tax penalties if you make withdrawals before 59 ½ or if you don’t start taking required minimum distributions, or RMD’s, when you’re 70 ½.

We had a guy come to us a couple years back who was 75 and he had never taken an RMD.

The penalty is 50% if you don’t do this, and you’re not going to get a reminder card in the mail from the IRS!

So if he was supposed to take out $3,000 that year and didn’t take it out, then the penalty is $1500.
Where’s he going to get that money? He didn’t have it sitting in the bank, so he had to take it from his IRA.

Make sure you’re working with a retirement income planning firm who can help you make sure you take your RMD’s and take them correctly.

Also, a lot of people don’t realize that your social security can be taxed.
Up to a certain level of income, up to 85% of your social security can be taxed.

You’ve paid into Social Security your whole life and depending on your taxable income levels in retirement, again, social security may be taxed.

You may be able to create a strategy to reduce the amount of taxes on your social security just by taking money out of one pocket and putting it in another pocket.

If you are one of those high income earners during retirement and your social security is going to be taxed… did you know that you might be able to donate that money to a non-profit instead of going to the IRS?

Most Americans are paying more in taxes than they should be because they’re not getting the help they deserve from the people they are relying on. They don’t know what they don’t know.

Come in and talk with us about that and we can tell you how you might be able to benefit from those kind of strategies.

David:
All these things and more come into play when building the right plan.
We feel that at Northwest Financial & Tax Solutions, we do this better than anyone else in the Northwest.

That’s what our Northwest Financial and Tax Solutions 8 Step Retirement Game Plan is all about.

This comprehensive analysis and 2nd opinion is available to any qualified caller into today’s show. There is no cost or obligation.

You will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An estate plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this offer? It’s pretty simple. Just be retired, or within 5 years of retiring, and have at least $100 thousand dollars saved.
Call right now. 1-855-500-RETIRE that’s 1-855-500-7384.

What you’re calling about, is a fully customized, comprehensive retirement income strategy. Not some one-size-fits-all, cookie cutter plan that we give to everyone. This is customized especially for you – for your specific situation.

To get the process started – call - 1-855-500-7384.

With the summer months we do have more flexibility to see people who want this review, so if you’re serious, give us a call.
That number again is 1-855-500-7384.

Jeff, we’ve packed a lot of critical information into one short hour today.

We’ve talked about the need to work on the fundamentals.
About having a plan, working with the right advisor, understanding why you have each investment, how it works, the fees, the income expectations, and taxes.
The Bottom Line: if you come to see us, we can help you make sure you have an income strategy, to carry you comfortably through the 20, 30, 40 years of retirement – and also potentially leave a lasting legacy for your family.

Jeff:
And that’s why we do our radio show and workshops, David – providing valuable information and education.

Whether you’re a seasoned investor… or a novice just trying to pull everything together in preparation for retirement, I hope you’ve found value in the show today.

Our goal is to educate you, and provide actionable insight. But we can’t do that without having the chance to sit down with you, analyze your portfolio and current situation and spell out some options that could put you in the driver’s seat when it comes to retirement.

If you learned just one thing on our show today – if we made you stop and think even one time – you owe it to yourself to pick up the phone, and give us a call.

I want to congratulate you for joining us today. You’ve taken an important step toward assuring you can live the life you want to lead in retirement. The next step – is giving us a call.

If you missed anything, or feel like you need to go over something again…go to our website, www.jeffdixsonshow.com – that’s w-w-w dot jeff d-i-x-s-o-n show, dot com……and listen to the show again.

Today’s show, and many of our past shows, are available there.
That’ll do it for the Jeff Dixson Show for this week. Please join us again next week – same time, same station. Until then, for my co host David Topper, have a great week, everyone.

July 25, 2018 02:17 PM PDT

Welcome to The Jeff Dixson Show “coaching you to and through retirement” I am your host, The Retirement Coach, Jeff Dixson.
I am joined today as always, by my co-host, a financial advisor at Northwest Financial & Tax Solutions, Mr. David Topper. Thank you for being here, David!
David:
Thank you Jeff.
Every week, we come to you with a different subject that is designed to help you better plan and prepare for a successful retirement. It’s our goal to give you relevant and useful information based on our years of experience in working with retirees and pre-retirees across the northwest.
Jeff:
That’s right David. This is what we do every single day.
People from all walks of life, all levels of education, and levels of experience in investing.
The happiest retirees I know have done two things:
1) They found what they will do during their retirement years that will give meaning to their life
2) They have planned financially for retirement with purpose and intent.
Both things, in my opinion, are essential to a truly successful retirement in the 21st century.
Most financial advisors are just about the dollars and cents.
How much money do you have?
Ok, great… let’s put you into these stocks, bonds and mutual funds, thank you and goodbye.
And many people don’t know the difference between this approach, and TRUE comprehensive planning.
Many financial advisors don’t do comprehensive planning!
We want to change that for you today.
You need to know what to consider, what to look for and what be prepared for!
Retirement planning goes beyond the numbers.
There is a human aspect in all of this that can’t get missed!
David:
Excellent point, Jeff.
I think one thing many people think of when it comes to a financial advisor is someone who is good at helping them pick the right investments so they can make money.
But we have to expand upon that idea in our minds, don’t we?
Jeff:
You’re definitely right.
Certainly a financial advisor should be there to help you find the right investment tools, but it should go far beyond that.
It’s been said about financial advisors in general- “they’re just there to sell you investments; the same way a car salesman is there to sell you a car”
There truly are a lot of advisors out there who are just working to sell you something.
And we see it every day in our practice.
People generally don’t know how to identify who is a true financial planner, and who is just in it to get your money and make a buck for themselves.
There are good ones and bad ones out there, and that’s what we want to talk about today on the show.
David:
I think this is so valuable, Jeff.
This conversation is more than about “hiring someone”-- we’ll also discuss many aspects of retirement planning that you should pay attention to.
But let’s start with this - What are the most important things to look for in an advisor?
Jeff:
David, you should ask these questions:
• Are they a fiduciary- meaning, are they legally obligated to do what’s in your best interest?
• When you first met with them, did they ask to see your tax return?
• Are they seeking to help you make the best tax decisions possible?
• Have they educated you on the fundamentals of investing?
This one is quite extensive, but incredibly important.
If you are with an advisor, they should explore these critical questions with you:
1) Why do you have each of these investments?
2) How do they work?
3) What are ALL of the fees you’re paying? All the fees, not just the ones on the surface.
4) What are the tax advantages or disadvantages to each of these investments?
5) What income can you expect from these investments either now or in the future?
6) What is your exit strategy?
Every investor should know these answers.
Every investor is capable of knowing these answers.
If you’re working with the right retirement coach… someone who can explain why your investments work the way they do.
Most people are concerned about living too long and outliving their money.
So in your portfolio, ask how much income, in total, you can expect from your portfolio.
These are very important questions to ask.

David:
So much valuable information, Jeff.
As an independent wealth management firm, we’re all about providing our clients and prospective clients with value.

That’s what our Northwest Financial and Tax Solutions 8 Step Retirement Game Plan is all about.

This comprehensive analysis and 2nd opinion is available to any qualified caller into today’s show. There is no cost or obligation.

You will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An estate plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this offer? It’s pretty simple. Just be retired, or within 5 years of retiring, and have at least $100 thousand dollars saved.
Call right now. 1-855-500-RETIRE that’s 1-855-500-7384.

What you’re calling about, is a fully customized, comprehensive retirement income strategy. Not some one-size-fits-all, cookie cutter plan that we give to everyone. This is customized especially for you – for your specific situation.

To get yours – call - 1-855-500-7384.

Jeff, you were talking about the aspects of a true comprehensive financial planner.

Jeff:
That’s right, David.
As I mentioned a moment ago, education for the client is critical.
Your advisor should educate you on all of your options, the pros and cons, and let you choose the approach that makes the most sense for you.
If you’re close to retirement, do you have a retirement income plan?
How do you plan to replace that paycheck when you stop working?
How much will that paycheck be?
Do you know how much income you can consistently depend on, no matter what happens in the stock market or the economy?
Will your plan be proactive, or reactive, to your needs?
Have they discussed multiple income strategies and let you choose?
Have they laid out all your options for taking social security distributions? Your social security strategy should work hand-in-hand with your investment strategy.
If you’re married, have they educated you on the three financial plans that every married couple should have?
Plan A- what if you both live to be 100 years old? People are living longer than ever these days – and no one wants to run out of money in their golden years.
Plan B- what happens to MRS, if MR dies first?
And Plan C- what happens to MR, if Mrs dies first?
David:
That’s an important consideration, Jeff…Because at the death of the first spouse, the cash flow for the surviving spouse changes immediately - and sometimes dramatically.
What else should a quality financial advisor be doing for his or her client?
Jeff:
How often is your advisor suggesting you meet with them? A good financial advisor will sit down with you at least once a year. Depending on the complexity of your portfolio, it may be appropriate to review your status semi-annually or even quarterly. Anything less than an annual review schedule is just setting it and forgetting it.
Are they presenting you with opportunities, or tweaking your strategy to fit your needs and stage in life?
Do you know how much you’re paying in fees?
Did your advisor clearly educate you on what you’d be paying and the value you get in return for those fees?
Do you have a proactive plan that accounts for the possibility of a market correction, increased taxes in the future or higher inflation?
A good financial advisor will talk to you about all these things.
Most people don’t know how to evaluate whether they’re getting the help they need and deserve.
These 10 keys I just laid out, are, in my opinion, essential to a job well done.

David:
There are SO MANY things to take into consideration to make sure you have the right plan in place, it can seem daunting.
But we want to make things simple.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

More things to look for in the right retirement coach – on the other side of the break. Stay with us.

BREAK

Welcome back to the Jeff Dixson Show. The theme of today’s show is Planning with Purpose. We’re talking about the critical things every financial advisor should be doing for their clients – but often don’t.
Jeff:
It’s unfortunate, David. If you’re not getting the type of planning and service that I’ve been talking about, you need to consider that you might be missing out on opportunities, paying too much in fees, and potentially working with the wrong person.
There are high and low performers in pretty much every profession.
As a consumer, you get to choose who you work with.
This applies to the quality of the financial advisor, the quality of your financial plan, and the quality of your investments.
The problem is, most people don’t know if they’re working with a high performer or not. We see it all the time.
Do they have the right plan - or do they have a plan at all?
Many people tell us “Oh, I have $500,000 saved, we’re on track for retirement”.
The question you need to ask, though, is “How much of that money is positioned properly to satisfy your income needs over the next 10, 20, 30 or 40 years?”
I meet with people from all walks of life and all levels of education.
I have clients who are engineers at HP and Intel, doctors at OHSU, school teachers, garbage men and Presidents of companies.
Everyone specializes in what they do as a profession.
Most people haven’t spent decades of their lives learning the intricacies of financial planning and that’s ok! That’s what my team and I are here for.
A truly good financial planner will be able to educate you in a way that you can understand and empower you with the information to make intelligent and wise decisions for yourself.
Dreaming about what you’ll do in retirement is exhilarating.
It’s fun to think about golfing, taking road trips across the country, spending weeks at a time at the beach, or spending more time on your hobbies.
Planning how you’ll pay for it? Not so much.
In fact most Americans spend more time planning their next vacation than they do their retirement.
Figuring out how to turn your nest egg into an income stream you can live on for decades is tedious and tiresome, for m ost people – and this often leads to doing nothing at all.
It’s very important that you have the right retirement coach, someone who’s leading you and helping you build the right plan for you.
David:
If you’re serious about making sure you have the right retirement game plan in place for qualified callers to today’s show, we’re offering The 8 Step Retirement Game Plan COMPLETELY FREE.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff we mentioned at the top of the show that good comprehensive planning should have a human aspect. We’ve touched on many of these “human aspects” but can you really spell out what that means?

Jeff:
When we draw a contrast between simply meeting with you and investing your money, and creating a plan that takes into account your hopes, fears, dreams and concerns – that’s the human aspect.

We have to understand fully how you want to use this money, what you care about –and, what you don’t care about.
We have to know the client well enough to match their dollars and cents strategy with their personal lives.

Now we also have to talk about the life changes.
We talk a lot on this show about the different phases of retirement. These phases all have different considerations.

When you first retire, you have to understand the effect that might have on you psychologically.

When you’re working, you have a schedule.
You have somewhere to go, a timeline to keep, deadlines, responsibilities that you likely don’t fully control.

When you’re retired, every day is Saturday.
While Saturday is a beautiful thing after a long work week, when every day is Saturday, many people often lose part of their identity.

Whether you recognize it or not, most of us like the balance between work and play. One fuels the other. One justifies the other.

Without work, we have to figure out what we’re going to do to keep structure and meaning in our lives.

That’s the conversation many advisors don’t have with their clients.
This is more than a conversation about dollars and cents.
It’s about navigating the financial and social changes that come with a retirement date.
Some people don’t need this help, but the transitions are often easier when talked bout.

David:
Getting started on the right foot can be crucial.
Jeff, we often encourage parents to get their kids involved in their financial planning. Talk about why this might be a good idea.
Jeff:
Usually as someone gets into their later years, their family will become more involved in their care, helping make decisions, setting up their elderly relative with getting what they need.
If we as financial advisors have discussed these possible transitions and changes down the road with the clients and their kids or other relatives who will be involved, it makes these sorts of transitions easier.
David:
There are SO MANY things to take into consideration to make sure you have the right plan in place, it can seem daunting.
But we want to make things simple.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff, we’re talking today about planning PURPOSEFULLY for retirement.
What’s next?
Jeff:
A major concern of people retiring today, along with healthcare, is living too long or outliving their money.
And yet many are incapable or unwilling to putting together a retirement income plan that will last 10, 20, 30, perhaps even 40 years.
Worse yet, many financial advisors don’t specialize in this area of financial planning!
There are so many theories floating around out there regarding the best ways to save and invest, so it’s no wonder the average consumer is confused.
If you choose the wrong strategy, it could mean a difference of thousands of dollars in income EVERY MONTH.
Or worse – you might not have enough money to live on in the later years of your life.
The most commonly overlooked aspects of retirement financial planning – are inflation, and taxes.
When it comes to retirement income planning, you’re making decisions today that will impact you decades down the road.
If you don’t have a plan for income, you could be banking on an income stream in a few decades that won’t cover your costs.
Let’s take inflation. Usually 3% is the recommended inflation percentage to plan for.
Your Social Security benefits may see some adjustments from year to year, but IRAs, pensions and other retirement vehicles typically won’t have any built-in protections against inflation.
So, it’s up to you and your financial professional to determine how much you’ll need at different stages of your life, and then how and when you’ll turn on your various income streams to make the most of what you have.
We want to not only survive in retirement, but thrive -- and have the lifestyle you deserve and have worked so hard for.
David:

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

To start the process, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff just talked about one of the two most overlooked aspects of retirement planning. When we return, we’ll talk about the other. Stay right there.

BREAK

Welcome back to the Jeff Dixson Show.
Before the break, we mentioned the two most overlooked aspects of retirement income planning. The first was inflation.

Jeff:
Yes David. If you don’t want to think about your retirement savings, it’s very unlikely you want to think about taxes.
A big mistake is underestimating the amount of tax planning required to avoid year-end surprises.
Another, is paying taxes on money you’re not currently using. Don’t count on your tax preparer to alert you to the long-term strategies that can save you money.
We recommend you work with a financial planner who considers taxes in their planning, and a CPA or accountant who engages in tax planning, not just tax preparation.
David:
Jeff, let’s transition to another potential pitfall soon-to-be-retirees run into – failure to budget their expenses.
Jeff:
Isn’t that the truth!
If you don’t budget, how on earth can you be prepared to finance your retirement lifestyle? But you’d be surprised how often we see it.
The steps are simple.
First, separate the expenses you need to cover in retirement into two different categories.
In retirement you’ll have your fixed expenses and your variable expenses.
Fixed expenses are things that you must cover every single month no matter what such as your water bill, your electric bill, and grocery bill and many others.
So you’ll need to set up your budget and know what those fixed expenses are.
Your variable expenses are things you’d like to pay for -- such as going out to dinner, movies, golf, other recreation.
When deciding which vehicles you’ll use to cover those expenses, we recommend that you use a reliable income stream for your fixed expenses and use variable income streams with larger upside potential for your lifestyle expenses.
You need to Know how much of your retirement income is “variable”.
--What percentage!
In retirement, you don’t want to have to worry about whether you’ll be able to pay your water bill, your grocery bill or cell phone bill.
When considering what retirement income strategy to employ, ask the question, “how much of this income is guaranteed and how much of it could fluctuate?”
We find very often that people go into retirement with almost all of their money at risk and no planned income that is reliable.
That’s what we call buy and hope.
You buy some investments and hope it works out down the road so we have income.
That’s not a great plan, in my opinion.

David:
Jeff, That illustrates why it’s so critical to work with the right retirement coach.
Make sure you work with someone who specializes in retirement income planning.
A traditional adviser can help you through the accumulation phase of your financial life (which is in your 20’s, 30’s, 40’s and maybe early 50’s), but when you’re nearing the preservation and distribution phase, you need someone who can educate you on all the options available today.
Look for someone who stays up to date on the growing number of income strategies, and understands that there is no such thing as one size fits all.
There are SO MANY things to take into consideration to make sure you have the right plan in place, it can seem daunting.
But today, we want to make things simple.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

Start the process.
Call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff, we’ve spoken quite a bit today about things to consider when planning for retirement.
We’ve talked about having the right financial coach…
The right tax planner..
But there’s one more side to that financial triangle we have yet to talk about.

Jeff:
You’re absolutely right David.
I teach and preach about what I call the “financial triangle” every week at our firm.
This is where you have the right financial advisor, the right CPA and the right estate planning attorney.
Those are the three key people you need to have.
Most people need this financial triangle, but likely don’t have it unless they’re a client of Northwest Financial.
I always say - You’re responsible for 4 houses. The house you live in… your financial house, your tax house, and your legal house.
Make sure you don’t have a leaky roof or weak foundation in any one of these.

If you have these three professionals on your team right now, the question you need to ask is- are they all working together?
Are they communicating with each other?
Most of the time the answer is no – because in most cases they are working in different offices, and have never met.
Financial Planning Synergy.
It’s a powerful, yet simple concept.
And believe it or not, many people don’t have it. At Northwest Financial and Tax Solutions, we offer it.
David:
That’s a significant point, Jeff.
We’re talking about planning your retirement with Purpose.
Hard to believe, but there are still a lot of folks who feel like they only have two places to put their money- the banks and the stock market.
What would you say to them?
Jeff:
David, we do run into that mindset that all the time.
Most people don’t know that they have many alternatives to the bank or the stock market.
We have index funds, bond funds, ETF’s, equity funds, annuities, BDC’s, structured notes, and publicly and non-publicly traded REITS.
Just to name a few!
And within each of these sub categories of investment and insurance vehicles, there are good ones, bad ones and a long list in the middle.
The difference is working with someone who knows the difference.
How are you to know what you have or what you’re being offered?
Simply put- education is the key.
You have to know what you have and how it works and if it’s the best thing for your situation.

David:
So much valuable information, Jeff.
As an independent wealth management firm, we’re all about providing our clients and prospective clients with value.

That’s what our Northwest Financial and Tax Solutions 8 Step Retirement Game Plan is all about.

This comprehensive analysis and 2nd opinion is available to any qualified caller into today’s show. There is no cost or obligation.

You will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An estate plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this offer? It’s pretty simple. Just be retired, or within 5 years of retiring, and have at least $100 thousand dollars saved.
Call right now. 1-855-500-RETIRE that’s 1-855-500-7384.

What you’re calling about, is a fully customized, comprehensive retirement income strategy. Not some one-size-fits-all, cookie cutter pla n that we give to everyone. This is customized especially for you – for your specific situation.

To get the process started – call - 1-855-500-7384.

BREAK

Welcome back to the Jeff Dixson Show.
Today’s show is all about being purposeful with your financial planning.
We’ve spoken about the difference between a financial product salesman and a true financial planner.
We’ve talked about some dangers that could befall you down the road in retirement, and what “human investing” really means.

Jeff:

Folks, know this.
Whether you’ve saved hundreds of thousands or even millions of dollars.
Whether you’re blue collar or white collar.
Whether you have an advisor or not.
We want you to have the retirement that you’ve dreamed of.
Making sure you have the best shot at doing that requires a proactive plan, focused on income, taking the entire puzzle into consideration.

Knowing when to take social security in conjunction with your spouse, and how that plays into your investment income plan, and your pension benefits.

Knowing to minimize taxes by engaging in tax planning year round.

Having the financial triangle – connected by your financial advisor- to produce financial planning synergy.

Making sure that you’re avoiding paying unnecessary and unjustified fees.

KNOWING in the first place WHAT you’re paying and being able to make a value assessment as to whether those fees are justified.

Creating an income plan that covers fixed expenses with consistent and reliable income sources -- so you don’t find yourself spending down principle unnecessarily in the event of a market correction.

We want to help you plan for longevity- in case you live well into your 90’s… and help make sure you’ll have income that will last.

We’ll proactively plan for the possibility that you may need long term care someday- or that healthcare costs may go up.

David:
All these things and more come into play when building the right plan.
We feel that at Northwest Financial & Tax Solutions, we do this better than anyone else in the Northwest.

That’s what our Northwest Financial and Tax Solutions 8 Step Retirement Game Plan is all about.

This comprehensive analysis and 2nd opinion is available to any qualified caller into today’s show. There is no cost or obligation.

You will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An estate plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this offer? It’s pretty simple. Just be retired, or within 5 years of retiring, and have at least $100 thousand dollars saved.
Call right now. 1-855-500-RETIRE that’s 1-855-500-7384.

What you’re calling about, is a fully customized, comprehensive retirement income strategy. Not some one-size-fits-all, cookie cutter plan that we give to everyone. This is customized especially for you – for your specific situation.

To get the process started – call - 1-855-500-7384.

The amount of money you spend each month in retirement is one of those reality checks most people aren’t prepared for.

What’s the best way to prepare for retirement, when there can be so many unknowns – especially when it comes to budgeting?

Jeff:
David, the “rule of thumb” for retirement planning is typically 70-75% of your working income to live comfortably - but that’s just a start point. Everyone’s situation varies.

I have people who I meet with who tell me they can’t dream of living on less than they do now during retirement.

I have also people who are frugal and home bodies and won’t need 70-75% of their working income in retirement.

In our industry it’s about asking the right questions. We’re going to drill down and find out what’s important to you - and not important to you - and what your goals and dreams are.

David:
We’re getting to the end of the show today. But it wouldn’t be complete if we didn’t talk about some of the most effective ways to generate income in retirement.

Jeff:
David, the old adage on investing was “buy and hold”, or “set it and forget it.” That doesn’t work anymore! We call buy and hold “buy and hope” because all you’re doing is buying and hoping it’s worth something down the road.
You need a true comprehensive plan that includes many, if not all of these categories.
1. Social Security – should be part of everybody’s plan.
2. Annuities- if you’re someone who wants to add to a pension, or maybe you don’t have a pension. We want create that reliable sustainable income source for the rest of your life and if set up properly, your spouse’s life.
3. A Pension – if you’re lucky enough to have one…they’re not very common anymore. Back in the 80’s, more than 80 percent of people retired with pensions. Now it’s less than 20% and most of those are government pensions because corporate pensions have gone bye bye.
4. Roth IRAs
5. 401k and 403(b)’s those qualified plans at work.

Not only do most people not have a *comprehensive* financial plan that includes these categories – many people don’t have a plan *at all.*

They may have some investments an IRA or 401k but that’s not a plan.

Like we said earlier on the show – if you’re married, you actually need THREE plans – one isn’t enough.
Plan A- is what if you both live to be 100 years old. The biggest concern today is living too long or outlving their money.
Plan B, is what happens to MRS if MR dies first?
Typically the whole cash flow of that household changes at the death of the first spouse.
Then plan C- what happens to MR if MRS dies first?

David:
For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

Start the process.
Call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff:
In its simplest form, retirement planning can be broken out into two parts:
1) The Accumulation phase
2) Retirement Income Planning Phase

Before you retire, it should be your mission to build a nest egg, that you can use to generate income when you pull the trigger and stop working.
Let’s take a dive into the accumulation phase.
Depending on your employment status, you likely have access to a savings vehicle provided by your employer. Most commonly it’s a 401k.

It might also be a 457, 403b, SIMPLE or a SEP.

If you’re offered a match, we encourage you to max out that match. At a minimum, contribute at least as much as your employer will match.

There is nowhere else you’re going to get “free money”.

Start saving early if you can- the more time money has to grow the better.

I also like the practice of making contributions automatic so you’re not tempted to use those dollars for something else.

After you’ve maxed out your employer match, consider utilizing a traditional IRA or a Roth IRA for savings.

This decision would be dependent on your tax bracket.
This is where we come in- it really pays to have the right retirement coach.

The reason I like looking at using a Roth IRA or IRA is because it gives you more options for investments.

In a 401k program you’re typically limited to the type of asset class you use and the options for those asset classes are also limited- and they’re chosen by the plan.
I’ve seen 401ks with 5 options and I’ve seen them with 500.
So how do you know which ones to choose?

Another thing you have to consider when choosing investment vehicles – is cost.
According to research from the Securities and Exchange Commission, over a 20-year period a 0.5 percent annual fee could reduce a $100,000 portfolio by $10,000.
A 1 percent annual fee reduces that portfolio by nearly $30,000.
But by no means are we saying that you should try to find the lowest fees possible and go with that.
It’s not just about fees. It’s what you actually make after all your fees and expenses.
No matter how you invest, you’ll ALWAYS encounter fees.
It’s the nature of the beast.
The real issue comes from paying fees for nothing.
For example, if you are working with an advisor who is not doing ACTUAL comprehensive planning, they aren’t actively planning for your long term success, they aren’t meeting with you to tweak and hone your strategy, they aren’t offering you quality financial advice and you’re still paying 1, 2 or 3% total fees for your portfolio- you’re paying for nothing.
It might Also be difficult for you to even figure out how much you’re paying.
If you look at your statement, you might see an expense ratio but typically the fees go well beyond that.
There might be 12b-1 fees, front end loads, back end loads, wrap fees, short term trading fees, redemption fees, trailing commissions, switch fees, incentive performance fees.
Truly, the list goes on and on.
Bottom line- figure out what your total fees are - figure out if you’re getting VALUE for what you’re paying, and go from there.
David:
As an independent wealth management firm, we’re all about providing our clients and prospective clients with value.

That’s what our Northwest Financial and Tax Solutions 8 Step Retirement Game Plan is all about.

This comprehensive analysis and 2nd opinion is available to any qualified caller into today’s show. There is no cost or obligation.

You will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An estate plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this offer? It’s pretty simple. Just be retired, or within 5 years of retiring, and have at least $100 thousand dollars saved.
Call right now. 1-855-500-RETIRE that’s 1-855-500-7384.

What you’re calling about, is a fully customized, comprehensive retirement income strategy. Not some one-size-fits-all, cookie cutter plan that we give to everyone. This is customized especially for you – for your specific situation.

To get yours – call - 1-855-500-7384.

Jeff, we’ve packed a lot of critical information into one short hour today.

Jeff:
Absolutely David, and that’s why we do our programs.

Whether you’re a seasoned investor or a novice just trying to pull everything together in preparation for retirement, I hope you’ve found value in the show today.
Our goal is to educate you, and provide actionable insight. But we can’t do that without having the chance to sit down with you, analyze your portfolio and current situation and spell out some options that could put you in the driver’s seat when it comes to retirement.
If you learned just one thing on our show today – if we made you stop and think even one time – you owe it to yourself to pick up the phone, and give us a call.
I want to congratulate you for joining us today. You’ve taken an important step toward assuring you can live the life you want to lead in retirement. The next step – is giving us a call.

If you missed anything, or feel like you need to go over something again…go to our website, www.jeffdixsonshow.com – that’s w-w-w dot jeff d-i-x-s-o-n show, dot com……and listen to the show again.
Today’s show, and many of our past shows, are available there.
That’ll do it for the Jeff Dixson Show for this week. Please join us again next week – same time, same station. Until then, for my co host David Topper, have a great week, everyone.

July 06, 2018 02:23 PM PDT

Strategic Investing
Do I have the right retirement game plan in place?

Jeff:
Welcome to The Jeff Dixson Show “coaching you to and through retirement”. I am your host, “The Retirement Coach”, Jeff Dixson.
I am joined today by my co-host, a financial advisor at Northwest Financial & Tax Solutions, David Topper. Welcome, David!

David:
Thank you Jeff, great to be here once again.
Today we’re calling the show, “Strategic Investing- Do I have the right retirement game plan in place?”

We are basing this show, on our experience of meeting with thousands of individuals who live in the Portland/ Vancouver area.

Jeff:

When we meet with a new prospective client at our firm, we think it takes time to do it right.

We start by getting to know them, and understanding who they are,
what they care about,
what their goals and dreams are,
what type of risk they’re comfortable with - and what types they’re not,
what their liquidity needs are,
AND what kind of INCOME they’ll need during retirement to cover their fixed and variable expenses.

It’s all about asking the right questions.

Then we take what we find back to our team of fiduciaries, and we run the analysis.

We dissect each element of their portfolio looking at multiple factors.

Then we look at the portfolio as a whole and compare that with their stated goals.

David:
It’s important to note here… sometimes we find big disconnects between what someone says they want and need, and where their plan is actually heading.

Jeff:
I kind of think about it like going to the grocery store without knowing what you want to make.

When you’re at the grocery store, just like in the investing world- there are a lot of options!

Some people have a plan…and some people just walk up and down the aisles and start plucking ingredients and food items off the shelf.

What if they came home with a bag full of gummy bears, black pepper, asparagus, heavy cream and avocados?

Then just threw all these ingredients together in a pot??

David:
Sounds like a recipe for disaster!

Jeff:
And that’s the point we’re making here.
Clearly, those ingredients all mixed together are probably not going to turn out very well.

It’s that way in the financial industry, too. There are a LOT of different investment options with different features, mechanics, costs and purposes.

What we find is that a lot of very intelligent people just start picking investments and throwing them in their portfolio, hoping for the best.

We believe that when putting together a retirement plan, “hoping for the best” is not a great strategy.

David:
I think it’s important to note, Jeff… that there are a lot of people we meet with who think they have all the right ingredients, but they either:

1) Don’t know exactly what ingredients they have- because they don’t fully understand them
2) Or, they have all the right ingredients to accomplish someone ELSE’s “recipe” or goals, not their own.

Jeff:
I think that’s a very, very important point, David.

At a high level, I see that there are three stages of one’s financial life.
The first is the accumulation phase- this begins when you first start working and it lasts all the way up to your mid 50’s.
Very simply- the goal in this phase is to grow your nest egg so that someday you may be able to turn that nest egg into supplemental income.
There are many guiding principles that should influence how you invest in this stage of life.
First of all- take advantage of all the free money you can get.
In many 401k programs, employers offer a match. If that match is 3%, contribute to your 401k all the way up to that match amount.
Second- and this is extremely important, so if you can, write this down. You cannot create wealth until you eliminate debt.
Too many Americans are living above their means.
While you should be taking advantage of that match, I’d recommend avoiding consumer debt as much you can – things like cars, credit cards, furniture payments. These types of credit typically carry a high interest rate, and you can’t write that interest off on your taxes like you can with a mortgage.
It’s healthy, as a fundamental principle, to minimize the amount of debt you take on as a family, especially in these early years.
Next- after maxing your employer contribution, consider contributing to either a traditional or a Roth IRA.
That’s depending on where your income is and which tax bracket you fall into.
We like Roth IRA’s, especially early on in life, because you benefit from tax free growth. And while your contribution may just start out as a seed, when you take it out tax free during retirement, hopefully that seed has grown into a large harvest.
It all comes back to you tax free, to your spouse tax free, and to your children tax free. Because you’ve already paid the taxes on that income back by contributing after-tax dollars.
With Traditional IRA’s and 401k’s, that’s not the case. You “defer” paying the interest by making those contributions before taxes are taken out. People often don’t take taxes into consideration and how much of that nest egg is going to go to the federal or state government.
David:
Now you’re saying during this accumulation phase… that after you’ve matched your 401k contribution, any further contribution might be contributed to one of these accounts that are outside of your work program…. Why just contribute more to the 401k?
Jeff:
Well it might make sense to continue to contribute to your 401k, however it’s all based on numbers, and your individual situation.
Typically in a traditional IRA or Roth IRA, you have more choices in the investment options that you choose.
In a 401k, there might be 5 options, 50 options, or there might be 500!
But most of the time, these options are limited to mutual funds, and often further limited to a single company’s funds.
You’re pretty much locked in.
You get what’s offered by your plan.
So when you’re working with an independent financial advisor, your investment options widen and you’re not limited to only one company’s funds.
You have more choice over cost, investments, diversification etc.
Additionally, with a 401k you don’t often get much help.
If you have an IRA or Roth with a financial advisor, they can advise you on how best to position those assets.
David:
And that’s something we can help with, as an independent wealth management firm.
So after this accumulation phase that lasts from the day you start working all the way up to your mid 50’s…. what then?
What’s the next phase?
Jeff:
In your mid 50’s you then enter what we call the preservation stage of life.
Depending on your desired retirement date, we like people to begin to down shift their risk exposure when they’re about 5 years from retirement.
So for you, this preservation stage might start when you’re 60 years old if you want to retire at 65 or, at 65 years old if you want to retire at 70.
Either way, the reason why- is because you don’t want your retirement date to be influenced by a correction or “bear” market.
Let’s say you’re 65 years old, and plan to retire next year. Suddenly the market takes a tumble and you lose 20, 30 or 40% of your portfolio. Are you prepared to start selling off your assets at a loss, to supplement your income during retirement?
One thing you can’t control is sequence of returns in retirement.
David:
Ok, so we have the accumulation phase and the preservation phase.
The next phase is our favorite.
Jeff:
That’s right, the preservation and income phase- the “promised land” of retirement!
This is when you turn your hard earned assets into a retirement income stream that will last you the possible decades of your retirement.
There are a lot of ways to do this.
There’s the systematic withdrawal approach, bond laddering, using dividends and interest, and there are other hybrid approaches as well.
Retirement is a marathon -- not a sp rint.
What we see most commonly is someone who doesn’t decrease their risk exposure, doesn’t create a strategic income strategy, and who simply has their money invested similarly to the way they did when they were in their 30’s, 40’s and 50’s, even after they’ve retired.

David:
That could be a mistake- in fact-this could be the worst thing you could do!

Jeff:
You’re absolutely right, David. Because like we said just a few minutes ago, no one knows what the sequence of returns in the stock market will be over the next 5, 10, 20 or 30 years.
But what we’ve seen over the last 18 years, with 2 market corrections, is that people using this strategy could be victims of bad timing.

David:
And whether you’re a sophisticated investor, or just a regular joe, anyone can benefit from a 2nd opinion.

For qualified callers to today’s show, we’re offering The Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

After the break – another great example of why having your financial plan aligned with your financial goals, is SO important.
BREAK

David:
Welcome back to the Jeff Dixson Show.
Jeff, we’re talking about strategically aligning your plan, with your goals. Sounds simple. But we have met many people who thought they had it all figured out - and we discovered that they were WAY out of line.
Jeff:
It’s true, David. Recently we had a couple who had called into the radio show come into our office. They were in their late 60’s and had just retired.
Their entire portfolio was mutual funds except for a small portion in cash.
Right off the bat, they had 98% of their portfolio at risk.
Then, as we went through the individual reports on their current investments, we found a couple of concerning things.
First of all- most of their mutual fund holdings had 3 star ratings or below. This is the Morningstar rating system, where they rate the fund’s performance on a scale of 0 to 5 stars.
And for this couple, it meant that between 40-60% of the funds in that category performed better than the funds in their portfolio.
Now, that sounds pretty horrible on the surface.
If you could have the funds that are at the top of the category, why would you own the ones that are in the middle of the category, or average?
That’s why I always ask, “Why do you own these funds?” It’s not a trick question. Maybe there’s something that I don’t know about the strategy.
For example, maybe the performance is mediocre, but the dividend they’re paying is superior.
Most of the time, though, the prospective client doesn’t know and the advisor never had a conversation with them as to why they would be selecting those specific funds.
David:
It’s key that you know what you have! It’s also important to know how much those investments are costing you. This is something that we can reveal in a portfolio & fee analysis.
Jeff:
Right you are, David. People often don’t know what they’re paying in fees, but they’re often unpleasantly surprised to learn that they’re paying an expense ratio, say, around 1 or 1.2%.
This large expense ratio could come ON TOP of a 5% front end load, or a 1% management fee, for example.
We can’t emphasize enough how important it is to know your fees and taxes and what they do to your overall portfolio.
David:
A question I often ask prospective clients is, the tenure of the manager.
It’s not something people consider- but wouldn’t you want to know if the person managing your money has been doing it for 1 year, or 30 years?
Jeff:
That’s a very good point, David.
Choosing the right investments is one thing, but that’s not all that goes into the equation.
Strategic investing for retirement involves many other things.
For example, in creating the right retirement income strategy, you must consider how all of your puzzle pieces work together.
David:
Very true, Jeff.
We say it all the time, “you can’t get a second opinion from the person who gave you the first” and that rings true for retirement planning.

Do yourself a favor, if you’re within 5 years of retiring or you’ve recently retired and you have saved at least $100,000…. Pick up the phone right now.

We can provide you with a comprehensive analysis on your current portfolio and it won’t cost you a nickel.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff, let’s talk about Social Security, and how it should work hand in hand with your overall income strategy.
Jeff:
Let’s go over the basics of Social Security, David.
First and foremost, to even qualify for Social Security, you must earn enough “work credits”. Those credits are earned by being employed, and contributing to the social security system through payroll.
If you’ve earned your work credits, then your check size will be determined by your 35 highest earning years.
This is important to note- because you want to make sure that the Social Security Administration has your correct earnings history on file.
You can go to SSA.gov to double check.
Now there are two types of Social Security benefits. Today we’re going to focus on the “old age/ survivor benefits”.
The earliest age you can claim benefits is 62.
If you start receiving benefits as early as they’re available, at age 62, your monthly benefit will be significantly lower than the amount they could be if you wait until 66 or 67 years of age.

Your full retirement age is determined based on your birth year.
It could be as early as 65 or as late as 67.
This age will determine how much your benefit will be reduced if you claim early- say at age 62.
The latest you can claim to have your benefit be as large as possible, is age 70.
David:
That’s A nice overview of the basics.
Now let’s go into how someone might look at these factors in deciding when to claim for benefits.
Jeff:
David, A large influencer in how you claim for benefits is your marital status.
If you’re married, your spouse will be able to claim spousal benefits based on your working record.
Typically, they’ll receive half of the check you receive.
They can also claim based on their own working record, if they’ve worked long enough to have the required work credits.
You will only have two social security checks coming into the household so it’s important to note that you have to choose between those two options.
Most people aren’t sure what to do.
So for that reason alone, it’s important that you sit down with one of our financial advisors so they can go over this with you and so they can make it simple so you know what options you have.
If your spouse is going to claim for spousal benefits, you must claim first.
So your spouse can’t claim for spousal benefits at age 62 if you’re wanting to wait to claim until 67.
Another important thing to note is that when one spouse passes away, the other spouse will only be able to keep the higher of the two social security checks, but not both.
David:
There are a lot of factors to consider!
Whether you’re a sophisticated investor, or just a regular joe, anyone can benefit from a 2nd opinion.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

We’ve covered the social security basics – on the other side of the break, how your social security decision can make or break your overall income strategy.
BREAK

David:
Welcome back to the Jeff Dixson Show.
Jeff, Talk about how your social security decision plays into your overall retirement income strategy.
Jeff:
It plays a very significant part!
Say for example you want to retire at 65 years old, when you’re eligible for medicare, and you’re trying to decide if you should claim benefits at 65, OR if you should wait until 67 or 70 years old.
If you were to wait, you’d have to bridge the gap with income from your other sources- say your IRA’s or 401k’s.
Typically people either have pensions and investments… or, just investments.
Pensions are a different subject I’ll cover in a minute, but let’s say you’re in the camp where you just have investments.
You’d have to look at your income needs to determine whether you’ll be able to cover your expenses, without turning on social security.
Will you be able to preserve your principal, or will you have to tap into it?
Are you going to have enough money to pay for basics and preserve your lifestyle?
If you do have to tap into it, how will that affect you for the next few decades of retirement?
Again, this comes down to the type of retirement income strategy you employ.
David:
On the subject of the relationship between social security and your investment strategy, many people I talk to don’t realize that your social security benefits can be taxed!
Jeff:
That’s right, many people are surprised to learn that up to 85% of your social security benefits can be taxed, depending on your income from other sources.
If you’re planning on claiming for benefits and continuing to work, you might be surprised to find that your social security benefit will be taxed.
It could be a $1 reduction for every $2 earned over a certain limit!
This critical to understand, and making a mistake here is not going to help you “win the retirement game.”
David:
There’s so much more that could be said on social security. But as we get closer to the end of the show here, I want you to talk about how taxes play into a strategic retirement plan.
But first!
It’s not too late, if you’re serious about making sure you have the right retirement game plan in place, we have a great opportunity for you today.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff, we’re running out of time on today’s show, but I think it’s important to go over taxes and how they play into a strategic retirement plan.
Jeff:
Absolutely, David. Taxes must not be ignored.
This is a piece of the puzzle that many people planning for retirement totally miss!
When I built my firm, I named it “Northwest Financial & Tax Solutions”
Now, while we do comprehensive wealth management, I think our listeners can see from many of the subjects we’re covering today, that creating a game plan goes well beyond simply picking investments and crossing our fingers.
That’s why I included “tax solutions” in our firm’s name.
Now, if you read disclosures for most investment companies out there, you’ll typically find a small piece that says, “we do not offer legal or tax advice, consult an accountant or an attorney”.
Now, I think a financial advisor who doesn’t seek to help their clients be as tax savvy as possible is doing them a disservice, which is why I own my own tax business.
Most financial guys wash their hands from a tax situation or legal situation, they don’t even get into it!
When I’m sitting in a meeting with a client and a tax question comes up, I have a certified public accountant right down the hall to help answer that question.
Let me be clear – it’s critical to have a tax plan, financial plan and legal plan. That’s the financial triangle.
And in a retirement plan, you have three things that can negatively effect a portfolio: Taxes, Fees, and Inflation.
If someone isn’t talking to you about those three things, you need to consider sitting down with one of our financial advisors.
We see every dollar we can save our clients in taxes as a dollar earned, because you still have it!
You can save it, invest it and spend it, and grow it the way you want to.
We believe strongly in tax planning.
Now, this is very different from tax preparation.
Tax preparation happens once a year- you walk into your accountant’s office and they plug all the information into the right boxes and Bam- You either owe money to the IRS, or you get a refund.
Certainly, depending on the complexity of your situation, with complicated investments, small businesses, real estate and so on, it can be a little more complicated than that… but the point is, that tax preparation happens once a year.
Tax planning happens all through the year. There are many little decisions one can make year-round, to limit your tax hit, come April.
Let’s say you need some supplemental income, you’re planning on selling a rental property, or you’re separating from a job… these are all examples of times where getting tax planning advice from a CPA makes a lot of sense.
There is so much cross over between the financial planning, tax and legal world!
This is why I believe so strongly in the financial triangle- where you have all three of these individuals on your team.
The most critical component of the financial triangle – is communication. Are these three people talking to each other?
I see it as my job, and my advisors jobs, to facilitate that three-way relationship, and open the door to proper communication.
David:
Fantastic information, as usual, Jeff.
We are right at the end of the show today, but if you’re not sure if you have a truly strategic game plan in place for retirement….
One where you have a plan for how and when to take social security…
how that will be orchestrated in conjunction with your pension decisions and how you structure your investment plan…
Where your investments are properly positioned to accomplish your goals-- you’re not in a bunch of middle of the road investments, but the ones that are performing the way they should!
If you want to know that you’re not paying too much in fees, that your expense ratios, management fees and so on, are competitive and reasonable…
These are all things we can go over with you in our Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.
This is something we offer completely free for qualified callers to the show.
How do you qualify? Just be within about five years of retirement, or be currently retired, AND have at least $100,000 saved toward your retirement. It’s that simple.
There is no cost, and no obligation.
To get your customized, personalized 8 Step Retirement Game plan, call right now 1-855-500-RETIRE, that’s 1-855-500-7384.
Don’t be mistaken, though – you’re not ordering a pre-printed, cookie cutter brochure that we’re going to pull out of a drawer and drop in the mail. This is customized especially for you.
We say it all the time. It never hurts to get a 2nd opinion on your plan for retirement ESPECIALLY if that 2nd opinion is coming from an independent fiduciary, who is legally obligated to do what is in your best interest.
Again, pick up the phone right now and give us a call - 1-855-500-7384.
Jeff:
I hope you enjoyed the show today on strategic investing.
We hope to have the chance to talk so we can get a retirement game plan in place for you.
Did you miss anything? Need to revisit any of the subjects we talked about today? Go to www.Jeffdixsonshow.com and listen to the show again. Today’s show, and many of our past shows, are there. That’s w-w-w dot jeff D-i-x-s-o-n show, dot com.
Or, go to iTunes, and search for The Jeff Dixson Show.
I want to congratulate you for joining us today on the Jeff Dixson Show. You’ve taken an important step toward being able to live the life you want to lead in retirement. The next step – is giving us a call.
If you learned just one thing from today’s show – if we made you stop and think, even one time – pick up the phone and give us a call.
Please join us again next week for the Jeff Dixson Show – same time, same station. Until then, for my co-host David Topper, and myself - have a great week everyone.

July 06, 2018 02:16 PM PDT

Positioning your Nest Egg for the Next “2008”
What if we see another stock market crisis that rivals “The Great Recession”?

Jeff:
Welcome to The Jeff Dixson Show “coaching you to and through retirement”. I am your host, The Retirement Coach, Jeff Dixson.

We hope all of you have a fun and relaxing Fourth of July holiday planned. I am joined today, as usual, by my co-host, a financial advisor at NW Financial & Tax Solutions, Mr. David Topper. Welcome David!

David:
Thank you Jeff. I’m excited about today’s show. We’ve covered this subject before, and it’s still very timely.

We’ve been hearing it just about everywhere: in the office; on news talk radio; in casual conversations with friends…

Anytime the conversation turns to money and finance, you’re likely to hear variations of this theme: “I just want to avoid the next 2008 market collapse!”

Jeff:
As much as we might wish to think of ourselves as people who “play offense” with our money, almost everyone who has put aside a dollar for retirement has experienced the tug of wanting to “play defense.”

We’ve seen a couple of one- or two-day hiccups in the past year…but so far that stock market “stairway to heaven” just keeps climbing.

Whenever the market takes a slight downturn, we wonder “Is this the one?”
“Is this the one that’s going to take me down again?”

This vague fear can undermine the courage of even the most strong-minded among us.

Why?
Because there’s no denying the underlying truth: markets cycle.

And getting caught in the midst of that cycle can do great damage.

A dropping market can harm almost anyone.

Especially those with an eye on retirement.

Everyone knows that there are bull and bear markets.

And we also know that “what goes up -- must come down.”

For those of us who were participating in the market back in 2008 and 2009, some doubt and fear probably keeps creeping in…even after all these years of recovery.

As a financial advisor, I get this from clients every day: “I just want to avoid the next 2008!”

David:

And we tell them the obvious: a healthy fear of a market cycle is a good thing.

We don’t know when the market is going to cycle again…and we aren’t about to start making predictions about it.

But, market cycles are a fact.

The key – is knowing what to do and how to position yourself.

Jeff:
That’s what today’s show is about: positioning your money to help weather any potential storm that could greatly impact your hard earned nest egg… if we were to go through another bear market like the one that started back in 2008.

Today’s show has been put together to help you – to help anyone, really - to position your investments properly so that you are better protected when the market cycle begins.

David:
Before we get started, let me ask you this: Is it possible to time the market to avoid the next catastrophe?
Jeff:
David, it has been said that a partially informed investor is the equivalent of the partially informed surgeon: very dangerous.

And on that subject, you CANNOT trust many of the pundits out there.
I saw a chart of the DOW’s climb since 2008.
Many so-called “market experts” have predicted an imminent market crash in the past ten years.
And every time – they’ve been wrong.

But here’s the undeniable fact--- markets move in cycles and there might be various indicators that could reflect a trend at a given time.

But, this doesn’t mean people can discern the right time to get in or out, consistently and accurately.

David:

Most people over 50 have not saved enough money…or have any kind of roadmap or plan for their retirement.

But one thing’s for certain…retiring comfortably and successfully – will never happen by accident.

You need a retirement game plan.

And the very foundation of that plan starts with a strategy to generate income in retirement.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff, we’re talking today about positioning your portfolio appropriately to protect it from being thrown off in the event of a market downturn.

Let me play devil’s advocate with you for a moment.

There are basically three types of listeners out there today:

1) The person who is a strong believer in the market, and think that market gains will make up for losses…. Eventually….. so talk of a downturn doesn’t scare them.
2) The protection minded investor- these people know somethings sure to happen, it’s just a matter of time, they don’t trust the market and they’re probably holding gold or silver, or looking to get their hands on some.
3) And, The average- somewhere in the between both of these, but they probably don’t have very strong opinions.

Jeff:
It’s the bulls, the bears and the average guy essentially.
David:
That’s right.
I could point back to many events that have taken place over the last few years such as federal reserve tapering, Brexit, the China trade war, North Korea tensions…the list goes on.
And while we saw several short term drops, we haven’t had a recession.
If you’d been playing your cards too conservatively, you would have missed out.
Jeff:
There’s a lot of truth to that, David. No doubt about it.
But we’re not calling bear and bull markets.
We’re not talking about taking advantage of micro inefficiencies.
We’re talking about the fact that cycles do happen.
With that knowledge, we have to know how to plan.
Today’s show is all about helping you avoid the next potential… yes, potential… 2008-like scenario.

By the end of 2008, the S&P 500 had lost over 35% of its value.

And millions of Americans were “shell-shocked” by what happened to their retirement assets.

Many were forced to delay their retirement.

Many more ended up having to go back to work.

And THAT’S the point. Sometimes if you haven’t built your financial house right, you won’t be ready for the hurricane.

If you haven’t built a foundation to your financial house- you won’t be ready for the earthquake – even if you know it’s coming.

You know… talking about protecting your money in a bull market is like the story of Noah, getting ready for the big flood, when the sun was shining.

If you remember that story, everyone scoffed at him as he built this huge boat, but as the story goes, it was him and his family who survived.

David:
We’re not being apocalyptic, we’re just encouraging you to frame your mindset appropriately.
We must be proactive in the world we live in today.

Jeff, what specifically should people be thinking about here?

Jeff:
That’s a great question.

If you haven’t thought about it, perhaps you should. Ask yourself these questions. If you can – write this down.

Are your assets properly positioned?

Are your investments allocated correctly?

Does your existing portfolio carry too much market risk as it sits today?

Could you afford to lose a chunk of your money and wait for the market to come back to recover it?

Historically, the last two market corrections took most people about 6 years from which to recover.

How long are you able to wait for the market to recover?

Today we want to help you understand some strategies you can implement to position your dollars and investments properly, and help you weather the next 2008-like market scenario, whenever that may be.


David:

The vast majority of Americans…and this may include you…are completely lost on the road to retirement.

Like it or not, everyone is on the road to somewhere but most people don’t know where they’re headed.

They may have some investments, but don’t know why they have them or when to adjust them.

Or when they’ll be able to retire.

It’s nothing more than a bunch of guesswork.

And when you think about it…that’s frightening when you consider this is an event that could last 20, 30 even 40 years of your life.

But you have the opportunity to change the course you’re on right now…

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

After the break – some simple things you can do – right now – that can help you lose too much ground if and when the next market cycle hits.

Stay right there.

BREAK

David:
Welcome back to the Jeff Dixson Show. Today’s program is about weathering another 2008 – 2009 market scenario…and positioning your assets to withstand something like it, if it ever were to occur.

Jeff:
David, we notice that a lot of the folks we meet with walk on eggshells around this topic.

Perhaps more so because of the stock market run up we’ve enjoyed in recent years.

Regardless of the reason, people seem to have 2008 on their minds in their decision-making. Which on one level…is smart.

But it’s important to remind them – and our listeners today, too – that nobody can predict what the market is going to do on any given day.

But, what a financial professional can do, is to help you focus on the proper placement of assets and investment dollars to help protect at least a portion of your retirement savings for your basic living expenses.

If you stay with us throughout today’s show, we’ll outline some strategies you can use to your advantage to help ensure you don’t lose too much money the next time the market cycles.

David:
Let’s start by talking about some simple tips that can help people avoid being over-exposed to the stock market at the wrong time.

Jeff:
David, in 2008 and 2009, investors lost quite a lot of money in a short period of time.

Actually from the market peak to the bottom, was about a year and a half… and the S&P lost 53%.

This is particularly serious for retirees and pre-retired couples, especially those who don’t have the luxury of not needing to rely on the impacted investment funds.

These are people who don’t have years to recover from a market decline or collapse.

It’s much harder for you to ignore your account balance and employ the “hang in there” mentality when you are close to retirement or already living off of your next egg.

For those folks, here are a few tips that could help you avoid or reduce your overall chances of getting badly hurt in the next correction.

Now these tips won’t be right for everyone - and you don’t want you to take action before first discussing them with your financial advisor.

Everyone’s situation is different, and what I’m talking about today are just a few things you should consider for your own portfolio to see if they make sense for you.

Number one - Don’t invest too much money into any single stock.


David:
It may seem obvious… but you might be surprised by how many people allocate large portions of their retirement money to a single stock.

Explain why one would want to avoid doing that.

Jeff:

Stock ownership is a common way for an investor to place money in a vehicle and hopefully it will grow it over time.

There’s a lot of volatility out there.

Yes, you can make the decision to buy or sell shares.

But, frequently, your lifestyle may dictate when you need to liquidate shares during retirement.
So if you’re relying on that money for income and the market is dropping, you’re drawing money out of a depleting asset and you’re going to run out even faster.

Will you be able to postpone taking a withdrawal, or liquidating shares in the middle of a downturn if your stock price has fallen dramatically?

This practice would be the opposite of the fundamentals of investing, in which you buy low, and sell high.

David:

Most people over 50 have not saved enough money…or have any kind of roadmap or plan for their retirement.

But one thing’s for certain…retiring comfortably and successfully – will never happen by accident.

You need a retirement game plan.

And the very foundation of that plan starts with a strategy to generate income in retirement.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

We’re talking today about ways to avoid being caught in a market correction like 2008.

You mentioned not being too deep in any one stock.

What’s another common mistake we should work around, if we want to avoid being hammered in a market correction like the one we experienced in 2008?


Jeff:
David, Another common mistake is to invest your retirement savings into an asset allocation comprised solely of mutual funds.

This is investing all your dollars into a mixture of mutual funds and ETFs, strategically spreading the dollars across a number of asset classes… for example: large-cap, mid-cap, international, fixed income.

David:
That’s an interesting one, Jeff, and I want to make sure our listeners get it – because many people have their money invested in this manner!

Jeff:
You’re absolutely right!

Having a diversified asset allocation is designed to help you mitigate risk and reduce overall exposure in any single asset class.

However, when the market goes through a major cycle (like it did in 2008), a diversified allocation may not always help you avoid taking a nose dive.

Don’t mistake “diversified” with the word “safe.”

Being diversified doesn’t mean you won’t lose money.

It doesn’t mean your assets are safe.

It means that you are invested across multiple asset classes and that you have reduced your overall exposure to any one given asset class.

But, even some diversified asset allocations lost over 20% back in 2008 and 2009.

Some investors who had employed this approach found they simply couldn’t afford to lose that money at that particular time on their balance sheet.

David:
What’s another way to protect your assets from a market cycle?


Jeff:
David, a strategy I like, is decreasing your exposure to equities, in favor of fixed income or principal-protected instruments.

This idea goes hand-in-hand with the first two ideas we spoke of: avoiding overinvesting in one (or too few) stocks… and also avoiding putting 100 percent of your retirement assets in a mutual fund mix.

To protect at least a portion of assets from the market ups and downs, it’s important to scale back on individual equity balances.

Conversely, it’s important not to oversell ourselves on the “safety” of our asset allocation.

So it’s best to shift holdings away from equities, and buy more fixed income, bond, annuity, CD, or principal protected instruments, if they suit your personal circumstances.

David:
As a reminder, on the show today we’re offering to qualified callers, the NW Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff, we’ve been saying that, to reduce overexposure to a down market like 2008, we should consider looking at increasing fixed-income and principal-protected products.

When we come back – the potential down-side to that practice. Stay with us.

BREAK

David:
Welcome back to the Jeff Dixson Show. Before the break, we laid out a strategy that can reduce your risk, ahead of a potential market downturn.

But a lot of people resist doing this – Jeff, tell us why.

Jeff:
Well, even though most people could benefit from making a conscious choice to allocate at least some of their investment dollars into strategies that generally carry less overall risk, not every does so.

One possible reason for that – is performance.

Some people hesitate to buy these “more conservative strategies” because they don’t have the same growth potential that stocks and mutual funds do.

Frequently, people opt to let the rate of return of a financial vehicle dictate the strategy they choose.

Put simply, in my opinion, this is making a decision based on greed.

And this may be OK for those who have a long timeline, and are working intentionally to accumulate as much money as they can.

But, when you are entering retirement, in my opinion, your focus simply must shift to preservation.

David:
So Jeff, let’s talk specific strategies here.

Jeff:

The first one is this: Focus on cash flow instead of rate of return.
Let me repeat that, and write it down if you can: focus on cash flow, rather than rate of return.

Forget, for a moment, the “average” rate of return.

In retirement, the cash flow your portfolio generates is likely to be much more important than the rate of return.

Cash flow represents the amount of income you may expect your portfolio to generate on an annual basis.
And that’s what most people are concerned with - Where is my income going to come from?

Cash flow can take many forms: dividends from a blue chip stock; a payment from an annuity; interest paid from a CD.

So, rather than solely selecting a financial product based on its potential rate of return, you may want to consider putting at least some of your money into strategies with the potential for higher cash flow and allow them to do what they do best: provide you with retirement income.

David:
Jeff, another strategy we talk about quite often on the show, and at our live workshops, is the “rule of 100”.

Jeff:

Right you are, David, and this is another strategy that, if employed correctly, can help someone avoid losing too much money in a market cycle. It’s a simple little guideline for determining what percentage of your assets to allocate to “conservative” strategies.

Grab a pen, and follow along with me.

Write down the number 100. Below that, write your current age. Then, subtract your age from 100.

Let’s say you are sixty.

Subtracting sixty from 100 leaves forty.

So, using the rule of 100, a sixty year old should have sixty percent of assets in conservative financial strategies (certain bonds, fixed index annuities, treasuries or structured notes).

The remaining forty percent could remain allocated in equity or growth-driven instruments, just for that reason- long term growth and liquidity.

Keep in mind that this is only a guideline to use as a starting place.

Everyone’s circumstances are very different, so be sure to discuss your allocation with your financial professional too.

At Northwest financial & tax solutions, that is part of our process.

David:
The vast majority of Americans…and this may include you…are completely lost on the road to retirement.

Like it or not, everyone is on the road to somewhere but most people don’t know where they’re headed.

They may have some investments, but don’t know why they have them or when to adjust them.

Or when they’ll be able to retire.

It’s nothing more than a bunch of guesswork.

If that sounds like you… you have the opportunity to change the course you’re on, right now.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

When we return – more strategies to help position your retirement portfolio for the “next 2008.” Don’t go away.

BREAK


David:
Welcome back to the Jeff Dixson Show.
We’re talking today about how to create an asset mix for yourself that might help your portfolio weather at least some of the damage if we’re visited by another “2008 – sized” market cycle.

Jeff, you gave us several great strategies earlier.
Continue down that path.

Jeff:
David, another safeguard is to “create a lifetime income stream for yourself.”

35 years ago, approximately 85% of Americans retired with a pension. Now, that number is around 20%.
So I like to ask- if you could have a pension, which is provides lifetime income, would you want one?

Most people would likely say Yes.

David that the rest of my team of financial advisors can help you reduce your risk and help protect your income from a downturn in the market.

By positioning a portion of your retirement dollars in such a way that creates a reliable stream of income, you can use this regular income to pay the bills you’ll incur living your retirement lifestyle.

So that should be a minimum, we call that the foundation of our financial house.

David:
Most people don’t have a plan.
They just have assets.

Whether for you that’s a 401k, IRA, some real estate or money in the bank… simply having assets is not enough.

Whether you’re looking at retirement in 10 years or you’re already retired, not having a strategic game plan can come back to hurt you.

If that sounds like you, take advantage of our offer today.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff, we’ve been talking about financial allocation strategies that could be employed by people wanting to avoid the huge losses we saw in the 2008 – 2009 market cycle.

A lot of folks may be asking: What’s the point of going to all this work, really?

Jeff:
Well, those who don’t learn from history could be doomed to repeat it.

We believe that anyone who doesn’t have unlimited resources for retirement should take steps to avoid the next potential market cycle crisis.

We want to encourage people to consider managing risk, and setting up financial strategies that can help reduce uncertainty, when the market cycles again…because it’s inevitable.

David:
Any final thoughts about making sure you are prepared the next time we see a major dip in the market?

Jeff:
I think the bottom line of the show today is the fact that most people have no idea whether their portfolio is invested correctly for their risk tolerance or stage in life.

If 2008 were to happen again, or even another less-serious correction, there might be a rude awakening for a lot of pre-retirees and retirees
We’d like to help change that.

David:
Let’s clarify. We’re not saying move all of your money out of the market…
we’re not saying go buy gold…
we’re not saying sell everything and buy a fixed annuity.
Jeff:
No David, but what we ARE saying, is that there’s an education gap in our system.
People have been lulled into thinking they’re fine because they’ve made money over the last 10 years.
Folks, everyone who has been invested in the market, has probably made money.
It’s been a bull market!
It’s a great place to be when the market is going up, but not such a great place to be when the market is going down.
But what cycles up, has historically cycled down.
You need to know how that will affect you.
AND PLEASE understand this point, if nothing else from today’s show. Pick up your pen, and write this down.
- Even though you COULD make more money by taking a more aggressive position, that aggressive position might not be right for you.

- Age appropriate, goals based, strategic investing in regards to your diversification and risk is the main thing that we see missing from most portfolios.

- They don’t match up with the client’s age or risk tolerance. They’re based on someone else’s.

If your advisor isn’t talking with you about these things, then maybe it’s time for a 2nd opinion.

David:

And that’s exactly what we’re offering on the show today.

we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff, we’ve packed a lot of critical information into one short hour today.

Jeff:
Absolutely David, and that’s why we do our programs.

Whether you’re a seasoned investor or a novice just trying to pull everything together in preparation for retirement, I hope you’ve found value in the show today.
Our goal is to educate you, and provide actionable insight. But we can’t do that without having the chance to sit down with you, analyze your portfolio and current situation and spell out some options that could put you in the driver’s seat when it comes to retirement.
I want to thank you for joining us today. We hope you have a better idea about how to position and protect yourself from the next market downturn, than you did when the show started.

If you missed anything, or feel like you need to go over something again…go to our website, www.jeffdixsonshow.com – that’s w-w-w dot jeff d-i-x-s-o-n show, dot com……and listen to the show again.
Today’s show, and many of our past shows, are available there.
Or better yet – pick up the phone and give us a call – and we’ll go over everything with you in person.
If you learned just one thing on our show today – if we made you stop and think even one time – you owe it to yourself to pick up the phone, and give us a call.
That’ll do it for the Jeff Dixson Show for this week. We hope all of you out there have a happy, relaxing and SAFE Independence day holiday with your family and friends.
Please join us again next week for the Jeff Dixson Show – same time, same station. Until then, for my co host David Topper, have a great week, everyone.

July 06, 2018 02:07 PM PDT

Do you have “Investments” or a “Financial Plan”?
You have money saved and invested, but do you really have a financial “plan” you can rely on?

Jeff:
WELCOME to The Jeff Dixson Show “coaching you to and through retirement” I am your host “The Retirement Coach”, Jeff Dixson. I am joined today by my co-host, a Financial Advisor at Northwest Financial & Tax Solutions, David Topper. Welcome David!

David:
Thank you Jeff, great to be here.
Today we’re going to take a deep dive into a piece of the retirement finance puzzle that could be of benefit to us all: coordinating your retirement assets in the most advantageous and strategic way possible.

Jeff:
That’s right. Most of us have spent a lifetime saving money.

You may have saved inside of a qualified employer plan (like a 401(k)) or even separately in brokerage accounts, Roth IRAs and Traditional IRAs.

Over the years, you have probably amassed a fairly diverse portfolio of financial products and investments.

You very well may have your investment risk “diversified” to your liking, and might even feel pretty good about the amount you were able to put away for your pending retirement.

But, do you really have a solid financial plan?

Or, do you simply have a financial portfolio full of a bunch of different investments?

Do you even know what the difference is?

Nearly every single week on this show, we talk about the importance of having a financial plan.

It occurred to us that some of our listeners, and specifically I’m talking about listeners who called us and came in for a 2nd opinion, have come in thinking they have a solid financial plan when, in fact, they really don’t.

Some are acting under the assumption that the investments and financial products they have purchased constitute a solid financial plan when, in fact, it doesn’t provide much guidance at all.

On today’s show, we’re going to discuss the importance of making sure you have an actual financial plan -- and more importantly, an income plan to rely on when it it’s time for you to retire.

And, while your portfolio of stocks, bonds, equities and/or other financial products may resemble a “financial plan” in some ways, it may still potentially fall short.

David:
That can be a scary thing, Jeff.
I know a lot of people who come in to meet with us fall into one of two camps.
Camp 1- They know that they need to pull everything together and don’t even know where to start.
Camp 2- They feel like they’re doing the right things, and may even be already working with a financial advisor, but they want to make sure.

In both of these cases, there’s a need to take a second look.

But you’re saying that many portfolios may not even be suited to a client’s goals?

Jeff:
The possibility always exists.

While the investments and products that you may have in your portfolio could be well suited to your situation, you may still need a more detailed game plan.

At my firm, we’re an independent wealth management firm focused on working with individuals close to or already in retirement and are ready to pull all of these things together that will help them accomplish their individual and specific retirement goals. This is really going to dictate the kind of lifestyle, and amount of stress they’re going to have, in retirement.

David:
We take a lot of pride in the fact that we approach each prospective client’s situation differently. Because everyone is different!

No two plans we have built here for clients are identical because no two clients at our firm have the same situation.

A lot of people who come to see us have received the “one size fits all” treatment from another advisor!

Jeff:
Yes and they’re easy to spot – because they all have the same investments.

It is important that you are able to differentiate the advisor - or “financial salesperson” - who simply wants to sell you investments, from the advisor or financial planner who is interested in improving your financial situation.

So whether you’re a seasoned investor with a strong base of knowledge, or a novice who’s simply done a good job of saving and is ready to pull all of this together, we want to empower you with education.

Our goal is that you learn a number of things today on our show, that will put you in a better financial position leading up to retirement.

I’m talking about the knowledge that will give you the ability to make an informed financial decision. So this is an important time in your life. Because retirement can last 10, 20, 30 even 40 years!

What questions should you be asking of your financial advice givers?

What are the elements you should have checked off before pulling the trigger and catapulting headfirst into retirement?

These are the questions we will answer on today’s show… so sit back, and grab a pen and paper. You’re going to want to take notes.

David:
If you’re like most people, your retirement game plan is nothing more than a bunch of scattered paperwork and statements.

A 401(k) here. An IRA there. Some other money in a savings account or a CD. But no plan to put it all in motion.

That’s the subject of our show today.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.
On the show today, we’re talking about the difference between having investments …and having a real financial plan.

What’s the difference between the two?

Jeff:
David, we mostly know what investments and investment products are.

But, we aren’t always clear on what a financial plan is.

Basically, a financial plan puts those investments in a context.
It’s an intentional series of decisions, structures and “what if’s”, that is meant to accomplish an overall goal.

That goal - is income!

When you stop working and you no longer get a paycheck you want to know where your income is going to come from for the rest of your life.

David:
And people are living longer today.
The number one concern of people who come to us for advice, is living too long or outliving their money.
So a financial plan puts those things into context.

Investopedia defines a financial plan as a “comprehensive evaluation of an investor's current and future financial state, by using currently known variables to predict future cash flows, asset values and withdrawal plans.”

Jeff:
But David, I’m constantly surprised, how many people come into our firm for help week in and week out and don’t have their entire house in order.

The legal house, the proper will or trust.
Their tax house - they don’t have someone really looking at tax planning to see where they’re able to reduce their taxes.
And their financial plan is just a bunch of investments they don’t understand.


So we always ask:
1. Why do you have these investments?
2. How do they work?
3. Do you know what you’re invested in here?
4. What are the fees for each of these investments?
5. What is the income you can expect from these investments now or in the future?
6. What are the tax advantages or disadvantages
7. And What is your exit strategy.

Most of the time we get the same three word answer to these questions.
I don’t know.
Im telling you - You need to know these things!
David:
That definition of a financial plan included the term, “Cash Flow”. Let’s talk about cash flow.

Jeff:
Well many of us know about cash flows as it pertains to a business.
But even as individuals, we all have cash flows.

Just think of your paycheck like the income of a business:
On payday, your paycheck comes in on day one as cash.

Over the course of the time period until your next check arrives, you use this cash to pay bills and make purchases.

As we spend, the amount of available cash shrinks.

Until the next paycheck arrives.

So we have money coming in, and money going out.
That cycle – of flush to lean – is called cash flow.

In retirement, as a married couple you might have two social security checks and maybe one or two pensions, if you’re lucky enough to work in an industry that still offers a pension. That’s nice cash flow.
But on the death of the first spouse, the cash flow in that household changes.

As I always say, you need three financial plans as a married couple – not just one.
Plan A is- what if you both live to be 100? Do you have enough money to take you to the finish line?
Plan B- What happens to MRS if MR dies first?
Plan C- what happens to MR if MRS dies first?

David:
So why is considering cash flow important in the financial planning process?

Jeff:
Because each of us must always have enough cash to meet immediate needs.

In that way, we’re no different from a business.

Some bills we need to pay immediately.

Just like a business would.

Sometimes, we have to pay a bill that is larger than we can pay from a single pay period.

So, we hold some money back so we can add it to money in the next check to cover a large expenditure.

The phenomenon of inflow and outflow is cash flow.

And it’s important because it enables us to make our way in the world when we have enough money to meet our needs…but not so much money that we don’t have to pay attention to our expenses.

And that includes…just about every one of us!

David:
Most people over 50 have not saved enough money…or have any kind of roadmap or plan for their retirement.

But one thing’s for certain…retiring comfortably and successfully – will never happen by accident.

You need a retirement game plan.

And the very foundation of that plan starts with a strategy to generate income in retirement.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff:
Financial plans.
Who needs ‘em?

The answer isn’t as simple as you might think.

We’ll talk about that NEXT. Don’t miss it.

¬¬¬¬

David:
Welcome back to the Jeff Dixson Show.
Today, we’re asking the question “Do you have a true financial plan?
Or, do you just have a bunch of investments?”
Jeff, how do we know?

Jeff:

Start with a fundamental question:

Why do I need to have a financial plan when it comes to retirement?

As things in the industry stand right now, this is quite the debate.

There has been plenty of discussion in the last few years that tends to focus on retirement planning and the usage of an actual “written” or established financial plan.

So you might ask, what is a financial plan?

And WHY should I get one if I don’t have one already?

David:
What’s the most common oversight surrounding financial plans?


Jeff:
The most common error we’ve seen people make, is thinking you have a financial plan when in reality, you actually don’t.

You may of course have some money put aside in an IRA, 401k or real estate investments.

But this is important, so write this down: you want to make sure you have enough money, making money, so you don’t have to go back to work!

If you decide to get a job after your retire, it should be because want to want to, not because you have to.

And the main reason some people don’t have a financial plan, is that they aren’t working with the right financial coach!

Our education system is letting people down, when it comes to understanding money, taxes, and investing.

I have people come in all the time who think they’re on track for retirement because they have $500,000 in their 401k account.
But I have to break the news to them- that’s not all yours!
You have two co-owners in that account, and that’s the federal and state government. I’m talking about taxes, folks.

Depending on how much you have accumulated, that, and the expenses you incur, are going to dictate the kind of lifestyle you’re going to have in retirement.

You may have done an excellent job saving money throughout the years.

David:
So, You may have a portfolio full of different financial products and investments you have accumulated over the years.

But, chances are, you still don’t have a true financial plan.
Let’s look at that.


Jeff:
In order to look into that subject clearly, let’s focus on a few ‘absolutes’ about life:

Number one - Things change: To put it mildly, life, and the things inside your life, constantly change.

So, what might work for you now from a financial standpoint simply may not work later.

Markets change, economies change, financial investments and products change, your financial needs change… You need to constantly evolve.

David:
Now, I think this is a simple concept but it is extremely critical to grasp.
Talk about how that pertains to a financial plan and what things need to be considered when creating a plan to accommodate the changing world.

Jeff:
Well I think it might be best illustrated by using an analogy.
We all remember the old days of business, right?
Let’s say you had a business back in 1980.
You had early computers, maybe you had big brick cell phones, floppy disks etc.
Let’s say you ran the same business all these years up until today and you didn’t change how you operated.

No teleconferencing technology beyond the phone, no cell phones for your employees, no internet or high speed processors, no customer relationship management systems.

Would this be an issue? Almost certainly. Because you didn’t evolve and adapt with the changing times.

Another absolute we need to take into account…
In retirement, there are a lot of risks.
Having a plan will help you combat the risks that the financial world carries along with it.

There’s stock market risk…Inflation…Longevity…Health-care.

How can you be sure your investments will protect you from these risks?

David:
Another “assumption” or “absolute” we think everyone should keep in mind:

You probably aren’t a retirement income specialist.

Unless you are in the financial field, and you have spent a lot of time and energy studying, immersing yourself in it, you probably aren’t a specialist when it comes to retirement income planning.

Jeff:
That’s what we’re here for. I have to tell people all the time, who are very intelligent, make good money and are professionals at what they do, that they have to be willing to work with somebody who knows financial planning.

Don’t get me wrong, I think everyone is capable of understanding these things, but most people don’t have the right coach. Someone who will educate them and walk them through the process every step of the way.

It’s as simple as that.

Most people go to financial advisors for help and they just get sold something and they don’t know what they have or what it’s going to do.

But another lesson that goes hand in hand with what we’ve just been talking about…Your advisor might not be an expert either!

David:
Jeff, this is often revealed to us when we go through the analysis portion of our process with folks.

Jeff:
Yes it is…when we’re going through a portfolio, we often scratch our heads trying to figure out why on earth it would be constructed in the way it has been.
Sometimes it’s apparent the advisor the client has been working with, wasn’t a true retirement coach.

They could simply be a financial product salesman for the company or companies they represent.

David:

The vast majority of Americans…and this may include you…are completely lost on the road to retirement.

Like it or not, everyone is on the road to somewhere but most people don’t know where they’re headed.

They may have some investments, but don’t know why they have them or when to adjust them.

Or when they’ll be able to retire.

It’s nothing more than a bunch of guesswork.

If that sounds like you… you have the opportunity to change the course you’re on, right now.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff;

How has the retirement landscape changed in the last 15 or 20 years? Stay right here. That’s next.

David:

Welcome back to the Jeff Dixson Show.
Jeff, we talked earlier about how one thing we can always count on – is change. How has retirement changed in the last fifteen or twenty years?

Jeff:
Well David..

• Pensions have largely gone away, replaced by the 401(k).
• People are living longer in retirement. In 1910, life expectancy of the average American was just 50 years old! Now, it’s mid 80s.
• People are spending more years in retirement. I bet when we first started working, none of us thought that we’d be in retirement for 10, 20, 30 or even 40 years!

David:
So people are living longer, the guaranteed source of retirement income found in pensions is going away. So that income must be replaced by savings and investments.

David:
Let’s talk about how to tell the difference between “a portfolio of financial stuff” and a true financial plan.

Jeff:
First, if you don’t have a written plan that establishes why you have the investments you do, you don’t have a plan!

Next, if your broker or advisor uses the word “diversification” a lot in place of the words “financial plan”, you don’t have a plan!

Next, do you know which investments in your portfolio are for income?

Which ones are for inflationary adjustments?

Which ones are for long-term growth versus short-term needs?

If you can’t answer these questions, you don’t have a plan!

Next, if your advisor hasn’t helped you define a retirement budget or spending lifestyle, and assessed whether or not you have saved enough, or whether or not the investments you do have are properly positioned to achieve your retirement spending objectives, chances are… you don’t have a plan.

Here are some recommended components of a true retirement financial plan:

• A spending plan or budget
• Inflation assumptions
• Risk tolerance assumptions- what I like to call “age appropriate investing”
• Taxation assumptions
• How to combat health-care or long-term care risk
• How reform or changes to things like Social Security or pensions might affect your investments and your plan.

If you haven’t taken these things into account – you don’t have a plan.

David:
Most people over 50 have not saved enough money…or have any kind of roadmap or plan for their retirement.

Retiring comfortably and successfully – will likely never happen by accident. You need a retirement game plan.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. Legal Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Lots of people wonder: am I saving enough for retirement?

Jeff:
Unfortunately, there is no “magic formula” to determine whether you’re saving enough.
You’ll want to know the answers to some hard questions:
How long will I want – or be able to – work?
How much will it cost me to live in retirement?
What kind of healthcare costs will I face?
The biggest mistake is giving up before you get started, assuming that “things will work out.”
No one can tell you how much risk is “right” — what matters most is what you feel comfortable with.

David:
What if someone is getting close to “retirement age”, and they’re worried they *don’t* have enough saved for retirement? Are they just out of luck, or are there things they can do to recover?

Jeff:
If you’re working with the right retirement coach, this is something that you need to have a serious conversation about!

Listen up, and take notes.
Because I’m about to show you an opportunity to have more income for the rest of your life!

What do most Americans do when they get a bonus or a raise?
They just go out and start spending more!

Instead, here are some steps we think you should take with that money, to improve your situation in retirement!

• Pay off high interest debt- I tell people that you cannot create wealth until you eliminate debt! Credit card debt, consumer debt, any debt you can’t write the interest off on your tax returns.
• Invest in a Roth IRA
• Beef up your 401k contributions
• Make “catch up” contributions, if you’re eligible.

I know…not as exciting as blowing your bonus on a new RV or an extravagant vacation…but the benefits of this practice can pay off in a big way once you hit retirement.

David:
If you overlook any of these things we’re talking about today and you don’t include them in your financial game plan, they can ruin the retirement you’ve always dreamed of.

Don’t let that happen to you!

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. Legal Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff:

If you don’t have the kind of plan you think you should, how do you find the right type of advisor? Stick around. That’s what we’re talking about next.

David:
We’re back, discussing the topic “Do you have investments? Or, do you have a financial plan?”
Jeff, let’s just say I’ve discovered that I don’t have the kind of plan I think would be best for me.
How do I find the right type of advisor?

Jeff:
Another great question.
• You need a Comprehensive retirement planner who focuses on income planning.
• Someone who Incorporates tax planning and legal planning along with their plans.
• Make sure they are a fiduciary – they are legally obligated to work in your best interest…not the interes t of their firm.
• What licenses do they have? Do they have both securities and insurance or just one? Because in my opinion, there is no one category that you can use to build your financial house.
• Ask how often they meet with their clients to review and adjust their plans.

You should also consider these other nuggets when you set out to find the right advisor or to build a true financial plan. Write these down.

• You can’t get a 2nd opinion from the advisor/broker who gave you the first;
• Diversification does not mean safety, and does not imply that you have a financial plan in place.
• Find someone who will take the time to thoroughly educate you and present all the options that are available to solve the problems your plan should address

David:
That’s a great example of things to look for. What are some “red flags” that might signal to someone that they aren’t working with the right financial advisor?

Jeff:
Three things I see quite often when people come in to see us:

1. The advisor never asked to see your tax return. If not and they just left that to your CPA, how do you know your financial strategy is working hand-in-hand with your tax strategy?

2. Your portfolio has just one type of investment. If your portfolio is 90 or 100% mutual funds and you’re over 45 years old that’s a red flag. That’s not diversification. That’s one size fits all. Same thing with annuities. If you have 100% or 90% annuities that’s not diverse either.
3. “Hope” as an income plan. If your income plan is based on something you “hope” happens. It’s best to have more assurances than a “hopeful hypothetical target” when it comes to money you’re relying on to live on for the rest of your life.

David:
Most people over 50 have not saved enough money…or have any kind of roadmap or plan for their retirement.

But one thing’s for certain…retiring comfortably and successfully – will never happen by accident.

You need a retirement game plan.

And the very foundation of that plan starts with a strategy to generate income in retirement.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff, we’ve packed a lot of critical information into one short hour today.


Jeff:
Absolutely David and that’s why we do our programs.

Whether you’re a seasoned investor or a novice just trying to pull everything together in preparation for retirement, I hope you’ve found value in the show today.
Our goal is to educate you, and provide actionable insight. But we can’t do that without having the chance to sit down with you, analyze your portfolio and current situation and spell out some options that could put you in the driver’s seat when it comes to retirement.
I want to thank you for joining us for The Jeff Dixson Show today. We hope you have a better idea about whether or not you have a true financial plan, than you did when the show started.

If you missed anything, or feel like you need to go over something again…go to our website, www.jeffdixsonshow.com – that’s w-w-w dot jeff d-i-x-s-o-n show, dot com……and listen to the show again.
Today’s show, and many of our past shows, are available there.
Or better yet – pick up the phone and give us a call – and we’ll go over everything with you in person.
If you learned just one thing on our show today – if we made you stop and think even one time – you owe it to yourself to pick up the phone, and give us a call.
That’ll do it for the Jeff Dixson Show for this week. Please join us again next week – same time, same station. Until then, for my co host David Topper, have a great week, everyone.

June 19, 2018 12:49 PM PDT

It’s Time For a Retirement Check-up

Retired or not, everyone needs a regular retirement checkup

Jeff:
Welcome to The Jeff Dixson Show “coaching you to and through retirement”. I am your host, The Retirement Coach, Jeff Dixson. I am joined today, a usual, by my co- host, a financial advisor at Northwest Financial & Tax Solutions, David Topper.

Thanks for being here, David.

David:
Nowhere else I’d rather be, Jeff. The best part about doing this show is helping to make people smarter about their financial future and their plan for retirement.

Jeff:
Same here.

We’ve been on the air for more than 4 years now.
We’ve educated thousands of people about retirement planning, locally and nationally.

We seek to provide you with relevant and useful information that you can use when it comes to your retirement planning.

I’m especially excited about the show this week because the way we’ve prepared it for you… in my opinion, it’s one of the most useful show we’ve ever done.

We’re cutting the fluff and giving you rapid fire financial advice.

Do yourself a favor, if you’re getting closer to retirement or you’ve recently retired, make a time investment and listen to this show. If you can, take notes. There will be plenty of nuggets that you’ll want to remember.

You might be running to the store, running errands, heading off to hit a round of golf… whatever the case may be- if you can stick with us here for the next hour, you’re going to get some information that could make a huge difference for your financial future.

David:
Let’s get into it, Jeff!

Jeff:
Most people are perfectly willing to be proactive about their health.

Most people are willing to undergo a physical exam.

Once a year, most people schedule a checkup with their doctor to make sure they are still in good health.

Most people, whether during an oil change at other times, regularly have their car checked out to make sure it is in good working order.

The reason we are so proactive about these things, and others, is because we know that having routine and regular check-ups is the surest way to catch anything undetected or untreated, that could come back to bite us down the road.

So, why should a regular checkup of your retirement portfolio and master financial plan be treated any differently from your health or your car, or your body?

With all the challenges facing today’s retirees or soon-to-be-retired men and women, wouldn’t it make sense to make sure your investments and plan for retirement are in proper working order?

Here’s the thing- most people don’t do this.

Furthermore, most people have NEVER, ever had a “financial check-up”.

This can be the worst mistake someone makes especially if they’re close to the retirement finish line or they’ve recently crossed it.

That’s what we’re going to do today: to examine whether you’ve had a “financial physical” lately.

We’re going to talk about why it might well be time for you to get a retirement checkup, whether you’ve already retired or are just thinking about retiring in the next few years.

And, after we talk about why it’s important, we’re going to talk about some of the things a good routine checkup should include and what you should expect to learn from a second opinion on your portfolio.

We also want to talk about some common financial mistakes people make with regards to money.

David:
Sounds great, Jeff.
It’s sure to be a good show today.
When we started the show today, we used the metaphor of a physical or health check-up on a routine basis.

Just as having a physical performed is one of the best preventative actions you can take to make sure that you don’t run into health problems as you age, the same can be said of your financial health, as well.

You just need to step up and get it down on paper.
Let’s talk about a few of the things that need to be addressed and understood about this process.

Jeff:

David, there are at least a half-a-dozen things you should pay attention to -- and maybe more.

Everything from “how much are you paying for advice?” to “how well diversified are you?” to “should you rebalance your holdings?”

Why don’t we talk about them, one at a time?

Let’s start with: “How much are you paying for your advice?”

If you are going to assess your financial advisor or your broker, you first want to understand how much you might pay for your relationship.

Nothing is free when it comes to investing.

Funny enough, we meet with people who think they aren’t paying anything for their current portfolio’s investments.

Folks, I’m here to tell you- that’s highly unlikely.

So, as part of your retirement checkup, you need to ascertain what type of value you are getting in return for your annual cost.

David:
Give us another checkpoint for a retirement tune-up.

Jeff:
You need to ask, How much market risk do you have with your investments?

It’s no secret: market cycles are an integral part of the stock market.

And, more than likely, these cycles will always be with us.

But, in the past fifteen to twenty years, we’ve seen greater and more frequent market turmoil than ever before.

Even as the American markets have been ticking steadily UP in recent years, the international markets have experienced quite a bit of financial turmoil.

So, if we see another stock market cycle or downturn, do you have an idea of how your investments will perform?

Are you happy with the amount of risk you’re carrying?

Are you really as conservative as you think you are?

Can you afford to realize the losses you might incur if you leave your investments the way they are currently positioned?

David:
Those are important things to ponder, Jeff. How can someone learn about their risk tolerance?

Jeff:
Well I would start by talking about a couple things:
First, I’d talk about this in terms of inc ome.
If you have certain investments and they’re set up to provide you income, the question is, are you relying on that income?

If the answer is yes, and you can’t afford to have it go down, and that money is exposed to certain risks, then that’s an indication that your risk tolerance might not be as high as you thought.

Another thing is this- if there was a correction, and you lost 20, 30 or 40%... what would that do to your desired target date, expected income, and confidence?

Would that keep you up at night?

It’s important to think about those things NOW.

It’s kind of like “hoping for the best but planning for the worst”.
How much volatility can you live with, AND live with the consequences?

It’s different for everyone… but if you don’t have these serious conversations, you’re not doing yourself any favors.

David:
Great advice.
Retirement is an event that can last 10, 20, 30 or even 40 years of your life.

The tricky thing is—the decisions you make today will determine your financial security over the possible decades of your retirement.

It’s hard to hit the reset button when you’re 20 years in.

For that reason, you need a solid financial plan for all the “what if’s” and “possibilities” that may come along during your path through retirement.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. Legal Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff, We’re talking about a great idea here today: the retirement checkup!

One-by-one, we’ll go down a list of important things to take into account, and prepare for.

You don’t want to miss this.

It’s coming up right after the break!

¬¬¬¬
David:
Welcome back to the Jeff Dixson Show.

Today, we’re talking about retirement checkups.

-why you should do one…
-what’s involved…

Certainly, you’ll want to know what you’re paying for your advice.

And you want to know how much risk exposure you have in your investments.

Jeff, what else do we want to learn from a retirement checkup?

Jeff:
Everyone wants to know – and certainly should know – if they’ve saved enough for retirement.

But, maybe not in the way you might think.

I like to think about the question of “Did you save enough for retirement?” more as a component of “how much do you actually need for income in retirement? “

I think the more direct and useful question is: Can your savings level actually support your need?

Your assessment or check-up should address the likelihood that what you need on a monthly income basis to live your life comfortably can actually be supported for a long time by the amount of money you have saved and socked away.

David:
Makes sense, Jeff. Simple goal-based planning.
It’s like asking “Do I have enough flour to make cookies?” vs. “I’m making 3 dozen cookies, do I have enough flour?”

What else should be included in a retirement checkup?

Jeff:
Everyone has the right to know if their investments have been good for them.

That should be ascertained in a good retirement checkup.

In my experience, when I talk to people in my office, this is something most people THINK they have a fairly decent handle on.

But, as we look a little closer, we discover this is actually something that many people get wrong.

Sometimes, it’s not easy to readily ascertain how well the investments you currently hold have performed since you first had them.

It can actually be quite hard to understand certain statements and drill down to discover your actual rate of return or performance.

Here’s another useful term- your annualized rate of return.
Typicallly when I ask people if they know their annualize rate of return over the last 5, 10 or 15 years- they don’t know.

You may look at an investment that you own and it’s doubled since you first invested in it.

The question is- how long has it taken that money to double?
What does that return “annualize” out to be?
Because if it doubled in one year, that’s an amazingly good return.

But if it’s doubled since you first invested in it in 1985… that’s certainly not as spectacular.

Here’s another thing- make sure you’re not counting your own contributions into the calculations for your rate of return.

This is something I see all the time.
You have to understand that your return is not a real return if you’re counting all the new money that you and your employer is adding to your account every month.

What I mean is this- say you have a 401k with some company.
You contribute $1,000 every month and you have for the last 20 years.
That means you’ve contributed 240,000.
If your balance is $350,000.
Your overall return is over 45% BUT
When you sharpen your pencil and calculate the ANNUALIZED rate of return – it’s actually only 3.63%.

David:
Those are some very good tips, Jeff.
You know, every week we meet with people who call into the radio show.
They come from all walks of life, levels of education, and levels of experience in investing.

There is one thing they all have in common.
They want to make sure that their plan for retirement is the RIGHT ONE… and is going to take them to the finish line.
We say it all the time, “you can’t get a second opinion from the person who gave you the first” and that rings true for retirement planning.

Do yourself a favor, if you’re within 5 years of retiring or you’ve recently retired and you have saved at least $100,000…. Pick up the phone right now.

We can provide you with a comprehensive analysis on your current portfolio and it won’t cost you a nickel.

When you come in, we’re going to take a deep dive into your current investments, see if there is any overlap in your portfolio, assess the level of risk your portfolio has, look at the fees, tax efficiencies, have our CPA examine your tax return, talk with you about your estate planning and legacy needs… It truly is a COMPREHENSIVE analysis.

In the end, you will know exactly where you stand and if there are any gaps in your plan.

It’s called the Northwest Financial & Tax Solutions 8 step Retirement Game Plan. To start the process on yours, pick up the phone and Call right now 1-855-500-RETIRE… that’s 1-855-500-7384.

Okay, you’ve taken us through a few of the mechanics of a retirement checkup: to assess fees, market risk, savings levels and investment performance.

What else should a retirement checkup assess?

Jeff:
Next on the list: diversification.

How well diversified are your holdings, really?

We’ve been taught that this word “diversification” is a synonym for safety.

That’s really not accurate.

Diversification is a needed component of your investments, as it helps you reduce risk.

However, it does not eliminate your risk.
I always encourage people, if they have a large portfolio that they don’t understand and aren’t really sure about you need to know how much of my money is guaranteed and how much of my portfolio will produce income?

As we enter retirement we are transitioning from the accumulation phase of life into the preservation and distribution phase of life- two different strategies.

So, rather than diversifying amongst asset classes, we want to review the diversification amongst investments and where you actually choose to invest your money for retirement.

Asset allocation divides your investments across categories of investments: stocks, bonds, cash, real estate, commodities. There’s thousands of different types of investments.

Diversification evaluates each individual holding to make sure that you don’t have multiple investments exposing you to the same risks: think Volero, BP, Conoco Phillips.

Each of these individual oil stocks are subject to the same risks.

Say you have Volero shares in an IRA, BP shares in a non-qualified account and Conoco Phillips shares individually: a decline in the price of oil will hit all three…and, perhaps, drag down the value of more than one of your accounts.

I’ve often said that if you try to own everything- you own nothing.
Because you have some good ones that are pulling the value up, bad ones that are dragging it down and average ones that are just average.

David:
For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. Legal Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff:
Nothing stays the same forever.
Not in life.
And certainly not in the world of finance.

Using a retirement checkup to keep up with the changes is what we’ll talk about after the break. Don’t miss it!

David:
Welcome back to the Jeff Dixson Show!

And today is devoted to talking about the retirement financial check-up

We’re really covering a lot of ground today.

What’s the next thing we should address in a retirement checkup?

Jeff:
Well this is something that is unique to our firm and that is the financial triangle.

When we do a retirement checkup for someone we want to see where they’re at with the financial triangle.

If you haven’t heard our show before- here’s what that is.

We believe that if you really want to have a comprehensive retirement plan it has three parts.
Visualize a triangle and at the top of the triangle is the financial advisor-
You need a top notch financial advisor who specializes in creating retirement income plans.
They can’t be a generalist, or someone who tries to be all things to all people.
They have to be a specialist, or someone who works with individuals who are close to, or already in retirement.

Secondly, you need to make sure you have someone looking out for your tax house.

A lot of people prepare their own taxes.
And if you have a simple return, this is totally fine.

But as life gets more complicated…. As you have multiple investments, you’re balancing withdrawals from accounts, maybe there’s rental income, you own multiple properties… your tax situation can get a little more complicated.

You should have someone who is available to you- YEAR ROUND, and I emphasize year round because decisions that can impact your tax situation at the end of the year, need to be evaluated and acted upon, 365 days out of the year.

They should do tax preparation, which is filling out your returns during tax season, AND tax planning which is looking at your tax decisions year round to limit the amount you pay come tax time.

Many people wait until February, March or April and then they take their stuff into their accountant. At that point it becomes a simple tax preparation process and there isn’t any time for tax planning, because the years is already over.

David:
We say it a lot on this show: a dollar saved in taxes has a 100% return because you can still save it, invest it and spend it and it doesn’t have to go to the government.

Jeff:
That’s correct, David. It’s what you don’t know that can hurt you.
Most Americans are paying too much in taxes and they don’t even know it.
We want to do whatever we can to legally reduce the amount you pay in taxes.

Finally, the third part of the financial triangle is the estate planning attorney.

This usually is one of the LAST things on anyone’s “to do” list… but we know from our experience talking with individuals each and every day, that most people – as many as 7 out of 10 -- do not have the proper will or trust in place.

It might be outdated, from a different state, not worded or prepared properly, not notarized and witnessed… there are so many things that people commonly do wrong.

But many people don’t have their legal house in order at all It’s one of the biggest thing people procrastinate on.

For that reason, to really check all of your boxes, and if you care about what happens to your money after you’re gone, then we recommend considering a consultation with a qualified estate planning attorney.

David:
Now a lot of people listening out there might be saying “that sounds great” but it also sounds like a lot of work.

Jeff:
And it can be, but we want to make it simple.
Actually, more people spend more time planning their next vacation than they do their retirement.

We think getting these things in order shouldn’t be a headache. It should be a matter of knowing who to trust, who’s going to do a good job, and having them help you make these decisions along the way.

Also David- this might be the most critical part of the whole financial triangle... If you have these three people that you’re working with right now…. are they talking to each other?

In fact, do they even know each other?

Why is that important?

Because there’s A LOT of overlap in these three worlds.

There are investment decisions that affect your tax situation.
There are tax decisions that affect your legal situation. And there are certainly tax and legal considerations that affect your finances. So even though we refer to these as three separate houses – they’re all in the same neighborhood.

David:
That’s a critical thing for people to hear, Jeff.
What else?

Jeff:
The retirement checkup is a great time to look at your objectives for your money.
I tell people all the time- there are 4 places for your money to go:
1) You’ll use it
2) It’ll go to your heirs
3) It’ll go to charity
4) Or it will go to the government
You want to have a plan so your money is going where you want it go to.
Because if you don’t have a plan, the state or fed eral government will implement THEIR plan, and you may not like it.
In fact, every retirement checkup should include a conversation about what you really want your money to do for you.

If you take a close look at the various objectives one can have with their investible money, you’ll find there are four pillars you want your investments to be anchored to.

David:
Growth. Safety. Liquidity. And Income.

Jeff:

Exactly right. For most of our clients, their number one concern, because they’re close to retirement or already in retirement, is income.

People want to know where their money is going to come from for the next 10, 20, 30 or 40 years after they stop working.

In some combination and some percentage, everyone who has money invested for retirement probably wants some portion of their money parceled among these investment pillars.

We all want our money to grow, and of course we all want it to be safe. Nobody wants to lose money, right?

Most people would love to have it be liquid, or accessible, and the majority of today’s retirees have some need for income during their retirement. In other words, whether the need is immediate or at some point in the future, most people will need their retirement savings to support their lifestyle in some way.

And a retirement checkup is the perfect time and place to assess whether your current investments are actually helping you achieve the objectives you have for your money.

David:
Retirement is an event that can last 10, 20, 30 or even 40 years of your life.

The tricky thing is—the decisions you make today will determine your financial security over the possible decades of your retirement.

It’s hard to hit the reset button when you’re 20 years in.

For that reason, you need a financial plan for all the “what if’s” and “possibilities” that may come along during your path through retirement.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. Legal Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Earlier, you were saying that – sooner or later – most people are going to want their savings to support them in retirement.

How can a retirement checkup make that more likely?

Jeff:

By helping someone understand risk and cost.

Two of the most detrimental impediments to a quality long-term retirement are risk and cost.
Also it’s critical to understand the tax side of things.

A great first step in having an actual assessment done of your current portfolio is to focus on the cost of your investments and the risk carried in those investments.

David:
A Portfolio Stress Test can be helpful in both of these areas.

Jeff:
You’re spot on, David. It is a great starting point for a conversation.
The Portfolio Stress Test will help you price your relationship with your current advisor and also help you understand exactly how much risk you might have in your portfolio at the current time.
After all, fees are present around almost every corner in today’s investment world, and very rarely are they fully disclosed.
In fact, most of the time you have to dig deep into the prospectus to actually find what you might pay in total.
David:
What are the components of a good, comprehensive fee analysis, Jeff?
Jeff:
There are several important touch points you want to include in a fee analysis.

First, you’ll want to understand your current Advisory fees.

Just how much are you paying your advisor or broker directly in fees and/or commissions?

Next, you’ll want to know if and how much you are paying in turnover fees?

David:
A turnover fee is another name for the cost to you to buy and sell investments.

Jeff:
Another thing you’d like to look at when you are doing a fee analysis are all of your mutual fund fees.

All of these expenses and fees add up.

Sometimes it’s eye opening to our clients to really know what they’re paying in fees.
So if you’re one of the many people who don’t have a solid handle on your investment fees, you’ll want to sit down with one of our top notch advisors and get this broken down for you.

David:
These are great insights.

If you’re like most people, your retirement game plan is nothing more than a bunch of scattered paperwork and statements.

A 401(k) here. An IRA there.

Some other money in a savings account or a CD.
But that’s where it ends.
You have investments but no real plan.

That’s a recipe for disaster.

Because you really don’t know what you have or how it works.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. Legal Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff:
I’d just like to add here - that if you’re considering retiring in the next few months or years in the Portland Vancouver metro area, you should not retire without coming into NW Financial & Tax Solutions so you know exactly where your income is going to come from, how much risk you’re taking, and the fees you’re paying.

David:
How does a financial professional assess the risk in a client portfolio?
We’ll talk about that on the other side of the break.

David:
We’re back. Thanks for listening to the Jeff Dixson Show.

We’re Talking today about retirement checkups.

Jeff, what tools are brought to bear in doing a client risk assessment?

Jeff:

David, most advisors use a combination of four tools in a Portfolio Stress Test : A standard deviation test uses Morningstar analytics and other tools.

It shows how much a portfolio could lose in a severe market cycle.

A 2008 past performance test looks at how an investment performed the last time the market crumbled.

This gives an indication of how risky a particular fund might be.

An asset class distinction test looks at distinctions between asset classes to determine how exposed a portfolio is in areas such as large caps versus small caps.

Finally, an overlap test compares mutual fund or ETF holdings to determine where and how the same stocks show up in multiple mutual funds.

David:
We see this every day. A lot of people think they’re very diversified but they have the same stocks or mutual funds holding the same investments.
That’s what we call overlap.
That’s always an eye opening conversation. What’s next?

Jeff:
A final checkup point compares the real return you seek, with benchmark returns.

A benchmark is a measure a mutual fund or ETF might use to gauge the aspirations for their fund.

Many portfolio managers and or brokers/advisors tend to sell to a benchmark as opposed to what the client’s real return desire is.

Let me give an example: the mutual fund you own lost fifteen percent this year. But, the benchmark for that fund lost twenty percent.

A portfolio manager might suggest that, because the fund outperformed the market, the fund owner should be satisfied with that performance.

Reality intrudes, however.

Perhaps the client set a personal risk tolerance floor at “minus ten percent.” Selecting that number for a “floor” indicates the client didn’t want to be exposed to that much risk in the first place.

Next is creating the plan and reviewing its performance.

Once you’ve completed the check-up, it’s time to sit back and determine which objectives you have that aren’t being met with your current investment deployment.

A good advisory team will be able to explain, by shifting from one investment to another, or from one philosophy to another, how you might be able to close some of the gaps or holes you uncovered in your review.

David:
Where has the hour gone, Jeff? There has been a LOT of good information on the show today.

Jeff:
Well it sure has, David and I think having a retirement checkup is incredibly important, you need to do it if you haven’t recently.

There’s a lot of volatility and a lot of people who are very concerned.

We want our clients to sleep well at night and I promise you if you sit down with us and go through all this you’re going to better understand your money.

You’ll find out if you’re paying too much in taxes or fees…
you’ll have a better understanding of how much of your portfolio is at risk…
And how you’re doing when it comes to income.

We already know that most people do not have a financial plan, you may have an IRA, 401k, some money in the bank, some real estate. That is not a financial plan.
If you’re married you actually need 3 financial plans.
Plan A- is what if you both live to be 100 years old? Do you have enough money to get you to the finish line?
Plan B- what happens to MRS if MR dies first?
And Plan C- what happens to MR if MRS dies first?
The cash flow in the household is going to change dramatically upon the death of the first spouse, depending on how you have your money positioned.
A retirement checkup should include an assessment of how well your investments create cash flow.

Many of our listeners have heard of the phrase “cash flow.”

But, it is important that we don’t confuse cash flow with rate of return.

The “cash flow” view of an investment is directly related to the amount of income that it provides you.

That income could be in the form of dividends, annuity payments, or spendable interest.

The question to answer is: how well do your existing investments create cash flow for your monthly income needs.

So, a retirement checkup worth its salt will assess each investment’s cash flow…and aggregate that cash flow, as well, to give a true picture.

David:
Great advice.
Retirement is an event that can last 10, 20, 30 or even 40 years of your life.

The tricky thing is—the decisions you make today will determine your financial security over the possible decades of your retirement.

It’s hard to hit the reset button when you’re 20 years in.

For that reason, you need a water tight financial plan for all the “what if’s” and “possibilities” that may come along during your path through retirement.

For qualified callers to the show today we’re offering an opportunity for you to get a second opinion on your plan for retirement. We call it the Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.

This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. Legal Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free copy of Jeff Dixson’s book “Winning the Retirement Game”

How do you qualify for this plan? Just be recently retired, or within 5 years of retiring or currently retired, and have at least $100,000 saved for retirement. It’s that simple.

We want you to understand – this isn’t some cookie-cutter, one-size-fits-all plan that we’re going to pull out of a drawer, and drop in the mail to you. That’s not going to help you. This is a fully customized analysis, built specifically for your situation…your goals…your risk tolerance.

To get yours, call 1-855-500-RETIRE. That’s 1-855-500-7384.

Jeff:
Before we sign off, let’s summarize everything we’ve covered on today’s show on the Retirement Checkup.
• We talked about What constitutes a “check-up”?
• Determining what your objectives are for your money?
• The four pillars on which most retirement plans are anchored.
o Growth
o Safety
o Liquidity
o Income
• Understanding risks and costs
• Benchmark returns versus real returns
• Creating and reviewing a plan

If you missed anything, or feel like you need to go over something again…go to our website, www.jeffdixsonshow.com – that’s w-w-w dot jeff d-i-x-s-o-n show, dot com……and listen to the show again.
Today’s show, and many of our past shows, are available there.
Or better yet – pick up the phone and give us a call – and we’ll go over everything with you in person.
If you learned just one thing on our show today – if we made you stop and think even one time – you owe it to yourself to pick up the phone, and give us a call.
That’ll do it for the Jeff Dixson Show for this week. Please join us again next week – same time, same station. Until then, for my co host David Topper, have a great week, everyone.

June 18, 2018 01:38 PM PDT

Looking at your investment options today

Jeff:
Welcome to The Jeff Dixson Show, coaching you to and through retirement. I am your host, “The Retirement Coach”, Jeff Dixson. I am joined today as usual by my co-host, a financial advisor at NW Financial & Tax Solutions, David Topper.

Welcome, David!

David:
Thank you Jeff, happy to be here once again.

Jeff:
David, we live in a world of seemingly endless options.

David:
That we do, Jeff, and that’s very true in the investing world as well.

Jeff:
Yes.
You have advisors from A-Z, online self-investing platforms, work programs, online trading programs and much more.

It’s often difficult to find a clear cut answer on how and WITH WHOM you should focus your hard earned retirement dollars.

In the world of financial planning and investing, EVERYONE thinks their way is best.

But who can you trust?

What’s the best for you?
That’s the question we’ll tackle today.

Full disclosure, I own an independent wealth management firm, so clearly, I believe it’s important to be working with a qualified fiduciary. A retirement income planning specialist… especially if you’re at or near retirement.
But we’ll get into that more in a minute.

We want you to succeed in retirement.

We want you to be confident that you have saved enough money for your retirement.

We want you to be confident that your money will last throughout your lifetime.

So that’s why it’s so important you make these choices wisely, and we want to help you with that.

David:
So the premise of the show is that we’re going to discuss different ways that you, or others, can manage your money.

We’ll talk about pros and cons of each method.

Things like--
• Work investment programs such as 401k’s
• Robo-platforms
• Self-directed trading platforms
• And the broad and complex world of financial advisors.

Jeff:
That’s a good start, David. So lets start with work investment programs.
The most common work investment program is a 401k.
David:
If you’re a non-profit or government employee, you may have access to a 403b or 457 plan. They work pretty much the same as a 401k, so for simplicity, we’ll lump them all together here today.

Jeff:
A 401k is a type of retirement plan offered by employers, and is also available if you’re self-employed.
It allows you to contribute a portion of your paycheck, before taxes are taken out, to a variety of investment options such as stock funds, bond funds, and money market funds.
Because you put money from your paycheck into a 401k on a pre-tax basis, making contributions reduces your annual taxable income and the amount of tax you have to pay that year.
You defer paying income tax on contributions and growth in the account until you take withdrawals in the future.
And that’s pretty much how 403b’s and 457’s work, as well.
David:
Are you sure that you have the right plan in place, that will take you strategically and successfully to and through your possible decades of retirement?
For many people, the answer is No.

So this next part is especially for you.

For qualified callers to today’s show, we’re offering the Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
How do you qualify? Just be within about 5 years of retiring -- or be currently retired -- and have at least $100,000 saved toward your retirement. It’s that simple.
This custom analysis and 2nd opinion of your portfolio is designed specifically for you, and there is no cost or obligation. The plan includes……
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This isn’t some pre-printed, cookie-cutter plan that we’re going to pull out of a drawer and drop in the mail to you.
This analysis will be custom built with your name on it - for your specific situation. To start the process, pick up the phone right now. 1-855-500-7384.
Jeff, you were talking about work investment programs – 401k’s and the like. Talk about the benefits of these work plans.
Jeff:
First of all David, it’s great if your employer offers a simple and systematic way for you to invest on a consistent basis.
Most people set up their 401k contributions automatically, which makes saving easier because you don’t feel like you had the money in your hand to spend in the first place.
The best part about these programs is when your employer is matching your contribution.
Many employers match a certain percentage of your contribution, say 3-5%.
This fringe benefit is free money!
Nowhere else are you going to get this free money so in my professional opinion, it’s important that you take full advantage of it.
Now, on a side note, it’s important that you know that the money in that account is your money.
What employers often do, to encourage tenure with their employees, is to put their matches on a vesting schedule.
This means- that after a certain period of time, the employer’s matched percentage will be fully yours, but not before.
Also, it’s important to note that these plans are managed by a third party- not your employer.
The money in these 401ks isn’t at your employer’s bank, or in their control.
The administrating company manages the 401k program, and the assets held within it.
David:
And the downsides to these programs?
Jeff:
David, we’re 100% proponents of taking advantage of all the employer match you’re able to receive.
After that, it might be good for you to take a look around at alternative options for investment of your retirement dollars.
For example, if your employer matches up to 3% of your contributions, then contribute 3%. Then, invest elsewhere.
There are 4 main reasons why.
The biggest reason is Limited investment options.
Some 401k or tax deferred retirement programs offer as few as 5 options, and others offer as many as 500.
While the programs with 500 options might sound great, typically the investment choices for these plans are only traditional investments such as stocks, mutual funds, bonds and money market accounts.
There are A LOT of other investment options out there that go well beyond these asset classes.
Also, give this some thought - if your 401k administrator is Fidelity, what type of mutual funds do you think will be offered?
Probably Fidelity. And not much else.
Now while Fidelity may have some decently performing funds, there are still SCORES of other mutual funds out there that you wouldn’t have access to.
David:
Not picking on Fidelity. That’s just an example.
Jeff:
Of course. The easiest way to think about it is like this- your company says they will spend 20% of the cost for your shoes that you need for work.
The company has selected Adidas as the administrator for that program.
Therefore, even if Adidas has good shoes…
if you wanted a pair of Nike’s, you don’t have that option.
David:
To go off that analogy, because I like it… Adidas might have shoes that are 20% more expensive than Nike. So in the end, you’re handcuffed to a more expensive pair of shoes if you want to take advantage of your employer’s 20% contribution.
Jeff:
Exactly, and that brings up the second shortcoming to 401k’s and other employer-sponsored plans – COST.
There are costs to the investments you choose within that 401k program.
If you’re limited only to the plan’s investment options, you don’t have as much of a choice over what fees you pay.
David:
For qualified callers to today’s show, we’re offering the Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
This custom analysis and 2nd opinion of your portfolio is designed specifically for you, and there is no cost or obligation. The plan includes……
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This plan is ideally suited for anyone who is within about 5 years of retirement – or is currently retired – and has a minimum of $100,000 saved for retirement.
To be clear –
This isn’t some pre-printed, cookie-cutter plan. Like we say all the time on this show – there is no One Size Fits All when it comes to retirement planning.
This analysis will be custom built with your name on it - for your specific situ ation. To start the process, pick up the phone right now. 1-855-500-7384.

So how do you really know, if the fees you’re paying on your investments are appropriate…or too much? Stick around after the break – that’s what we’ll talk about next.
BREAK
David:
Welcome back to the Jeff Dixson Show.
Before the break, we were talking about Fees.
We’ve talked about it on the show many times, Jeff, and we KNOW that it’s often very difficult for someone to know what they’re paying… which of course, makes it very difficult for them to know if they’re paying too much.
Jeff:
That’s right, David.
Fees are often hard to decipher. Even if you understand what you’re reading on your statement, how do you know if the fees listed there are appropriate?
With most 401k plans, you have to consider that you’re likely not going to receive much, if ANY service, when it comes to fees.
Many HR departments, who are the employee’s point of contact for their 401k administrators, try to organize lunches or other times for the administrator to come in and speak to a group of employees about these plans.
I’ve sat in on these meetings, there’s a lot of generic advice and it can be awkward for someone to try and raise their hand in a large meeting to ask their personal financial advice questions.

Recommendations often aren’t often made specifically for each employee… and if some sort of high level “recommendation” is made, it almost never takes into account someone’s stage in life, financial goals, risk tolerance and timeline for retirement. That’s why you need your own qualified financial advisor – not a plan administrator.
David:
That brings us to the next issue we have with 401k’s and other employer-sponsored plans, Jeff – Allocations.
A lot of people just take a shot in the dark as to what they should be investing in.
Jeff:
The market environment is very very complicated.
Something that’s become increasingly more popular, especially in these 401k programs, is target date funds.
These autopilot funds are hugely popular, in part because they are often the default investment choice in 401(k) plans, with your money automatically directed to them unless you elect otherwise.
According to the Investment Company Institute, more than half of all 401(k) plan participants had some money stashed in a target-date fund at the end of 2017.
David:
Considering there are multi trillions of dollars held in 401k programs in this country, that’s a LOT of people who are using these target date funds.
Explain how they work.
Jeff:
Well, like their name implies, they are funds that have a “target retirement date” associated with them.
Typically, these funds move from stock heavy, to more bond heavy as the target retirement date year gets closer.
Often, you find that these funds are not made up of individual stocks and bonds, but rather, Mutual Funds that contain stocks and bonds.
My problem with this, is fees- think about it like this:
A mutual fund is just a basket.
Within that basket are investment holdings.
Typically there are fees associated with each mutual fund – and those fees vary by fund.
So when you select a target date fund, you’re actually selecting a basket of mutual funds – all with their own fees. The costs can multiply quickly.
David:
Just another example why it’s SO important that you know what you have, why you own it, and what you’re paying for it.
We say it all the time, “you can’t get a second opinion from the person who gave you the first” and that rings true for retirement planning.

If you’re within 5 years of retiring or you’ve recently retired and you have saved at least $100,000…. Pick up the phone right now.

We can provide you with a comprehensive analysis on your current portfolio and it won’t cost you a nickel.

For qualified callers to today’s show, we’re offering the Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
This custom analysis and 2nd opinion of your portfolio is designed specifically for you, and there is no cost or obligation. The plan includes……
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This plan is ideally suited for anyone who is within about 5 years of retirement – or is currently retired – and has a minimum of $100,000 saved for retirement.
To be clear –
This isn’t some pre-printed, cookie-cutter plan. Like we say all the time on this show – there is no One Size Fits All when it comes to retirement planning.
This analysis will be custom built with your name on it - for your specific situation. To start the process, pick up the phone right now. 1-855-500-7384.

BREAK
David:
Welcome back to the Jeff Dixson Show.
Alright, so we’ve talked about the pros of these work deferred retirement investment programs, like 401k’s…and we’ve talked about the cons.
Anything else to add, Jeff?

Jeff:
I think as an overall statement, pertaining to these funds, we like that you get free money with your employer match.
Take advantage of that free money.
It’s the only place you’ll get it.
However, after you’ve maxed your match, consider a Roth IRA or Traditional IRA.
The main difference in these types of IRA is when you pay the taxes, and that is significant.
With an IRA, you contribute before taxes – you’re deferring the taxes until later, when you withdraw the funds. Similar to a 401k.
With a Roth IRA you pay the taxes up front, but when you take it out later, it’s tax free…because of course, you’ve already paid the taxes.
So the choice is…do you want to pay the tax on your contributions NOW…or in the future? Keeping in mind, income tax rates in America may be different in 5, 10, 15 years when you’re ready to retire.
These vehicles offer more choices on investment options, more choices on fees, and CAN be administered by a financial advisor who will better assist you to make choices, move things around, and advise you on your allocations and investment strategy.
David:
But let’s say for instance someone wants to withdraw their money out of their 401k.
You can do that, but we want you to understand the ramifications.
If you’re not facing any hardships, and you’re under 59 1/2 , you will be penalized for taking money out of the account.
Jeff:
That’s right David - there’s a 10% penalty for early withdrawal.
On top of that, you’ll pay taxes when the money is taken out, as it will be added to your ordinary income for that year. Depending on your situation, this could bump you up into a higher tax bracket. So think about it – not only are you increasing your taxable income, you might end up paying MORE taxes on ALL your income, because you chose to take this money out.
AND – the money you just took out is no longer working for you, earning interest or dividends. That costs you MORE money over time.
Please understand - these programs were never designed for you to withdraw from early to go buy a boat, or even to pay off your mortgage.
They’re designed to be used during retirement.
I caution people all the time that you should never take a big chunk out of these accounts to go pay for something, especially with the relatively low interest rates being charged on loans today.
David:
Is there any way to get the money out?
Jeff:
Only by leaving your job, retiring, or turning 59 ½.
Once you reach that age, you can sometimes roll the money over into an IRA while you’re still at your current employer.
Be aware, that some plans don’t allow in-service withdrawals, but many plans do.
You can also roll it into an IRA if you don’t work at the employer anymore.
David:
I know there are a lot of people who have worked somewhere and had a 401k, but after they stop working there they just leave the money they’ve accumulated in the 401k plan.
This goes against our advice.
Jeff:
That’s right, David. The problem is, you’re still not getting any service, you’re not getting any help on your recommendations, you’re susceptible to the fee structure dictated by your investment choices within the plan, and you’re no longer receiving a match on any contributions you make… so there isn’t really a compelling reason to keep the money there.
We find there are a lot of those old 401ks sitting out there because people don’t realize they have choices. It probably would make more sense to roll those funds into an IRA.
David:
Great, well that was a great overview, Jeff.
It’s not too late, if you’re serious about making sure you have the right retirement game plan in place.
For qualified callers to today’s show, we’re offering the Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
This custom analysis and 2nd opinion of your portfolio is designed specifically for you, and there is no cost or obligation. The plan includes……
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This plan is ideally suited for anyone who is within about 5 years of retirement – or is currently retired – and has a minimum of $100,000 saved for retirement.
To be clear –
This isn’t some pre-printed, cookie-cutter plan. Like we say all the time on this show – there is no One Size Fits All when it comes to retirement planning.
This analysis will be custom built with your name on it - for your specific situation. To start the process, pick up the phone right now. 1-855-500-7384.

We’re talking about different investment options people have available to them.

Jeff:
The next one I want to talk about is robo-platforms.
These have been growing in popularity over the last few years.
The catch-all term “robo advisor” includes a class of investment managers and software that uses complicated computer algorithms to administer your investment portfolios.
Some robo-advisors are completely automated, while others offer access to human assistance as well.
Regardless of the model, they all provide customer service to assist you through the process.

The pros of a robo advisor are:
Lower fees
Lower minimum balances and barriers to entry
And trading based on algorithms - for easier automation of investment choices.
David:
Ok, so these are some nice features.
But they don’t make sense for everyone, do they?
Jeff:
I’d say they would make sense for someone in their 20’s or 30’s who wants to invest beyond their work 401k program.
Low costs, low maintenance and low minimum balances are very attractive for someone just starting out.
I don’t think this approach makes sense for someone who’s in their 50’s all the way up to in their retirement years.
The reason I say that is…
when you’re getting close to retirement, there are many factors to consider in building the right plan that will get you to and through retirement, that a robo advisor simply cannot address.
For example, one thing we teach and preach every day is the financial triangle.
We believe you should have a top notch financial advisor- someone who specializes in retirement income planning.
Because let’s face it- in retirement, the name of the game is income.
If you stop working and you don’t have an income plan, it’s like you’re floating out in space.
The Next part of the triangle is the Certified Public Accountant.
The CPA should do tax preparation, of course… but they should also do tax planning.
And there IS a difference.
Tax preparation happens once a year.
Simple tax preparation you can do yourself- just put the right numbers in the right box and PRESTO--You either owe money to the IRS, or you get a refund.
As your tax situation becomes more complicated, you own a home, you have more complicated investments, you might even own a small business, rental properties and so forth… your taxes require a professional eye to make sure you’ve checked all your boxes.
Tax PLANNING- happens throughout the year.
I just had someone come into my office who decided to retire from Kroger.
Kroger/ Fred Meyer had offered them a buyout, that included 60 weeks paid with 40% up front in a lump sum.
They’re in their mid-50’s and they have a 401k that they want to roll over and they have to figure out medical insurance as well.
That’s someone who needs tax planning.
How will their taxes be impacted by a lump sum pay out?
Should they get a job or not work?
How do they know how much they can earn, and not get bumped into the next tax bracket?
Should they convert some of the 401k to Roth?
Should they use some of that lump sum payment they got from their employer to contribute to an IRA to decrease their taxable income for the year?
There are a LOT of considerations in situations like this.
There’s no one size fits all.
So they need to be bouncing back and forth between their CPA and Financial advisor to get the answers to their questions.
That’s why I like having my own tax company, so my advisors can pull our CPA into a meeting and ask “hey, Janet and Steve are thinking about this, what’s your tax perspective on the issue?”
People don’t realize how taxes and fees can impact your overall portfolio and the income that it produces… so tax planning is very critical.
Then there’s the third part of the triangle, and that’s estate planning. Having your legal house in order with your wills, trusts etc. That’s why we also have an estate planning attorney working in our office. Everyone knows each other, talks to one another and works together.
These are things that a robo-platform can’t provide.
David:
We mentioned algorithmic trading. Computers and algorithms are pretty complex and wouldn’t it make sense that they would be able to crunch numbers better than a human portfolio manager?
Jeff:
That’s a pretty good question and it IS making a lot of financial advisors shake in their boots, BUT at this point in the young industry of robo-advisors- most of their portfolios use broad market strategies.
And we have seen how those react when we have periodic corrections in the market.
You fill out a generic risk questionnaire and they spit back a generic portfolio.
They’re so “diversified” that you’re going to do what the market is doing.
And often you just foll ow the S&P 500 up and down, up and down, riding the roller coaster.
It virtually eliminate the ability to seek opportunities within the market.
Here’s an idea, that you might not have considered- in a market there are buyers and sellers, right?
Ok, if everyone is buying at the same time and selling at the same time all based on these theories, who wins?
Fundamental investing is- buy low and sell high.
If you’re just buying and holding, you’re banking on the appreciation of the market and you’re sacrificing possible returns.
David:
So while robo-advisors are cheap, low maintenance and there’s a low barrier to entry, they might not be a good fit for someone who’s in retirement or about to retire.
If you want to make SURE you have the right income plan in place for retirement, listen up.
For qualified callers to today’s show, we’re offering the Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
This custom analysis and 2nd opinion of your portfolio is designed specifically for you, and there is no cost or obligation. The plan includes……
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This plan is ideally suited for anyone who is within about 5 years of retirement – or is currently retired – and has a minimum of $100,000 saved for retirement.
To be clear –
This isn’t some pre-printed, cookie-cutter plan. Like we say all the time on this show – there is no One Size Fits All when it comes to retirement planning.
This analysis will be custom built with your name on it - for your specific situation. To start the process, pick up the phone right now. 1-855-500-7384.

More pros and cons to different investment options – when we return.

BREAK

Welcome back. So we’ve gone through 3 investment options:
• Work plans, like 401k’s
• IRA’s/ Roth IRA’s
• And Robo Advisors

How about self-directed investment platforms?
Jeff:
David, this is on the opposite spectrum from the robo advisors.
While robo advisors are more geared towards individuals who want things automated, online trading is very manual and requires a hands on approach to be successful.
According to a 2016 Forbes article, a quarter of all US adults are online retail trading but only 6% of those are professionals.
Many higher net worth individuals are trading as well, beyond simply using a financial advisor.
Many investors using these platforms also use a financial advisor for the majority of their retirement assets, while devoting a smaller portion of their assets to these self-directed platforms.
Here’s one obvious drawback to this practice.
Every time you make a trade, you’re paying a $7-15 commission. And often, the only guidance you can receive is from employees at a physical location.
Typically, you’re not receiving direct financial guidance based on your financial goals, your age and your risk tolerance.
Also, you don’t have the in-depth financial, tax and legal advice that comes from working with a financial advisor who is using that financial triangle.
It’s a fun option, BUT for someone who is looking to retire, the in-depth retirement income planning goes well beyond just picking stocks, bonds, and mutual funds.
.
David:
Sounds Pretty simple.

I think we’ve touched on this one quite a bit, Jeff but the last piece is utilizing the services of a financial advisor.

What types of advisors are out there, and how might you judge the pros and cons of each?


Jeff:
We get asked this all the time, and there are many types of financial advisors out there offering many types of investments and services.

Typically, when you go to an advisor you’ll be offered investments, not solutions.
It’s hard to decipher what you’re getting.

I think there are a number of things to look for, AND to look OUT for.
1) Is the advisor educating you?
- Have they educated you on exactly what you own, how it works, and why their recommendations will specifically accomplish your stated goals?
- Have they talked with you about the fees, risk, liquidity, tax advantages or disadvantages, and exit strategy?
- Have they educated you on how your investments will work together cohesively with your social security, pension and other income sources?
- Have they asked to see your tax return?
- Have they taken the time to get to know you, evaluate and educate and propose detailed solutions?

What service will the advisor and their staff provide you?
Will you have annual, semi-annual or quarterly reviews?
Will your funds be actively managed or passively managed?
Here’s a big one: Are they a fiduciary? Are they charged with the responsibility to always do what’s in your best interest?
David:
All excellent points, Jeff.
Our show today has been all about the different investment options every investor has.
We live in a world of options and it’s important to know the pros and cons.

Jeff:
What I’d recommend for our listeners, is that you factor in the complexity of your situation, your age and what solutions you need, and make the choice between the options carefully.
If you’re working with one of the top retirement income firms in the country they can ask the right questions and they can help you make a decision.
David:
When it comes to your retirement plan…It’s what you don’t know, that you don’t know, that can hurt you.

Make sure you have all of your boxes checked, when it comes to your financial and retirement plan.

For qualified callers to today’s show, we’re offering the Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
This custom analysis and 2nd opinion of your portfolio is designed specifically for you, and there is no cost or obligation. The plan includes……
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This plan is ideally suited for anyone who is within about 5 years of retirement – or is currently retired – and has a minimum of $100,000 saved for retirement.
To be clear –
This isn’t some pre-printed, cookie-cutter plan. Like we say all the time on this show – there is no One Size Fits All when it comes to retirement planning.
This analysis will be custom built with your name on it - for your specific situation. To start the process, pick up the phone right now. 1-855-500-7384.

Jeff:
Thank you David.

David:
Always a pleasure, Jeff.
It looks like we’re out of time on this week’s show.

Jeff:
We want to thank everyone for joining us today for our show on the different investment options available to you. To revisit any of the subjects we talked about today, go to www.Jeffdixsonshow.com and listen to the show again. Today’s show, and many of our past shows, are there. That’s w-w-w dot jeff D-i-x-s-o-n show, dot com.
Or, go to iTunes, and search for The Jeff Dixson Show.
If you learned just one thing from today’s show – if we made you stop and think, even one time – pick up the phone and give us a call.
Just by listening to our show today, you’ve taken an important step toward being able to live the life you want to lead in retirement. The next step – is giving us a call. We’d love to work with you.
Please join us again next week for the Jeff Dixson Show – same time, same station. Until then, for my co-host David Topper, and myself - have a great week everyone.

June 18, 2018 03:17 PM PDT

Mistakes to Avoid When You Retire
Avoid these five retirement mistakes: make sure that you have a “retirement game plan”

Jeff:
Welcome to The Jeff Dixson Show “coaching you to and through retirement”. I am your host, “The Retirement Coach”, Jeff Dixson. I am joined today, by my co-host, a financial advisor at NW Financial & Tax Solutions, Mr. David Topper.
How are you today David?
David:
Doing fantastic, Jeff. Ready for another great show!
Jeff:

Excellent.

Are you confident about your prospects for retirement?
If you’re like many Americans and you aren’t so sure, today’s show is an important one.
Today we’re talking about the most common mistakes we see people make, that you need to avoid.

Experience is the best teacher, but it’s even better if you can learn from someone else’s experience instead of having to learn the hard way.

It seems pretty easy to retire… all you have to do is stop working, right?

I mean, if you’ve been saving money for a couple decades, you’re all set, right?

Not so much.

I wish it were that easy, but I’m here to tell you - it’s not.

Truth is, retirement planning is a complicated equation.

I think people tend to neglect just how many different areas of retirement planning they need to focus on and just how many things can easily go wrong.

There are some things you can do to plan for some of these unpredictable things that will happen in your life.

Sure, the investment selections and the products you choose to put your money in is very important, but the equation doesn’t end there.

We want you to think more holistically about why you invest your money where you do.

Don’t just stop at the potential rate of return and how much risk the investment might carry.

Think about the other aspects of retirement that your investment could help you with, such as income, or inflation, or long-term health care, or legacy planning.

These areas are some of the very areas that people can make some major mistakes on.

There are, I’m sad to say, many opportunities to make mistakes in early retirement.

We could devote a series of shows to that subject.

But we’re going to talk today about some of the mistakes we often seen made by individuals that can lay waste to their retirement plans, and in the worst cases, cause them go back to work.

David:
Before we get rolling here, I do want to make our listeners aware of what we’re offering today – but only for qualified callers.
How do you qualify? Just be within about five years of retirement, or be currently retired, AND have at least $100,000 saved toward your retirement. It’s that simple.
For qualified callers to today’s show, we’re offering the Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This retirement income plan is ideally suited for anyone who is recently retired, within 5 years of retiring or currently retired, and has saved at least $100,000.
This isn’t some cookie-cutter plan that we’re going to pull out of a drawer and drop in the mail.
This analysis will be custom built with your name on it - for your specific situation. Pick up the phone right now. 1-855-500-7384.
Jeff, as you mentioned, there are so many mistakes one can make, early in retirement, that can virtually destroy the plans they worked so hard to put in place.

Where do we begin?

Jeff:
Well David, many discussions devoted to mistakes made in retirement center on investing and investment mistakes.

Heaven knows, there are hundreds of examples of those.

And investment mistakes can, indeed, change the whole trajectory of someone’s retirement years.

But the conversation in today’s show is going to focus on mistakes that aren’t directly related to your investments or investment choices.

Instead, we’ll explore some of the errors in judgment that are, so easy to make - But, they can be very difficult to recover from.

These errors in judgment pertain to your retirement savings.

To start, one of those mistakes is making a major lifestyle change immediately upon retiring.

It’s completely understandable.

We leave the workforce, excited by all the possibilities.

And we bring with us a lifetime of deferred dreams and aspirations about the life we’ll lead when we finally reach that magical day!

As a financial advisor, I hear them all: Someone wants to buy an RV and travel the country, camping, cruising, visiting countries all over the world.

Someone else wants to finally buy that boat they’ve had their eyes on, but put off purchasing.

They plan to spend more time fishing, or out on the water, or spend every day on the golf course.

Or maybe they want to see the world a bit, taking long dreamed-of vacations.

These are just some of the things we hear about at Northwest Financial & Tax Solutions when we’re talking about their retirement dreams.

David:
Most people do have a “bucket list” of retirement wishes.

Jeff:
And David, that’s really what Retirement is meant for – living out your dreams and wishes that you’ve worked so hard for.

But I’ll caution you about jumping too far, too quickly.

It’s very easy to “want” some of these things for yourself after you have spent a lifetime of working and saving to gain the freedom that retirement represents.

But, our advice is that you take a step back for a second when it comes to these major lifestyle changes. You’ve got to have a plan.

The reason is this: usually, one of these ambitious goals or dreams adds bottom line costs to your budget.

And these bottom line costs are easy to overlook and can be difficult to recover from once they are part of your budget mix.

So you need to make sure to sit down with someone who specializes in retirement income planning.

David:
Very true, Jeff.
We say it all the time, “you can’t get a second opinion from the person who gave you the first” and that rings true for retirement planning.

Do yourself a favor, if you’re within 5 years of retiring or you’ve recently retired and you have saved at least $100,000…. Pick up the phone right now.

We can provide you with a comprehensive analysis on your current portfolio and it won’t cost you a nickel.

For qualified callers to today’s show, we’re offering The Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This retirement income plan is ideally suited for anyone who is recently retired, within 5 years of retiring or currently retired, and has saved at least $100,000.
This isn’t some cookie-cutter plan that we’re going to pull out of a drawer and drop in the mail.
This analysis will be custom built with your name on it - for your specific situation. Pick up the phone right now. 1-855-500-7384.
Jeff - earlier, you were cautioning people to be careful about making major lifestyle changes when they first leave the workforce and enter into retirement.

To be clear - you weren’t saying “Don’t do it!” ….

You were saying “Be careful!”

Jeff:
That’s absolutely right, David. One thing everyone should do is sit down prior to retiring and write down your existing budget.

The purpose of this exercise is to determine how much you spend each month, running your household and doing all the things you’re accustomed to doing.

After you do this, there’s a “next step”: write down a retirement budget.

Here, you want to include costs that will change when you aren’t going to work every day.

How much less will you spend on gas?

How many fewer miles will you put on the car?

How much will you save by not going out to lunch?

How much will you save on clothes for work?

The purpose of this exercise is to determine IF, and HOW that budget will change when you enter retirement.

David:
I see. Figure out your yearly expenses while you’re earning income.

Then, figure out your yearly expenses when you won’t be going to work every day.

I can see why a prudent person would do that.

What’s next after that?

Jeff:
The next step is, arguably, one of the more difficult.

You’ll want to identify expenses you’ll incur in retirement, that you didn’t have while you were working.

What will actually cost more, now that you’re not working?

Will you have new insurance expenses?
Medical expenses?

These won’t always be readily apparent.
But, these figures will need to be budgeted for.

And they need to be as accurate as you can make them.

Then, after you’ve put that retirement budget together, we suggest you spend six months to a year getting accustomed to your new retirement budget. That may take some discipline.

Then, after a time for reflection and adjustment, you may be able to go make that big purchase or pursue that retirement dream.
That’s why it’s so critical to be working with a retirement coach.

This interim period will serve to help you be as sure as you can be, that you’ll be able to sustain the additional expenses living out your dream may demand.

David:
It does seem a little more thoughtful to pencil things out before making a major financial leap early on in retirement.

When we return – more early retirement blunders may people often make – but are easy to avoid. Stay with us.

BREAK

David:

Welcome back to the Jeff Dixson Show.
We’re talking about common mistakes that a lot of people make, early in their retirement, that we want you help you avoid.

Jeff:
Here’s one, David, we see all the time!
Failing to budget for the unexpected, the unpredictable expenses.

Maybe an illustration would help here: let’s imagine for a moment that we finally made that big purchase.

For our purposes, let’s say we bought an RV.

I mean, “Hey,” you say to yourself. “What can it hurt?” I’m retired.

I think I’ve earned it.

But what most people don’t realize are the additional costs associated just with having an RV, and actually using it.

They don't call an RV a motor "home" for no reason.
The average motor coach, which combines the vehicle and living quarters, costs around $100,000, according to the Recreation Vehicle Industry Association.
You can buy a decent vacation condo for that amount.
Factor in gasoline, taxes, park hookups and off-season storage, and your retirement savings could take a big hit.
Not surprisingly, RVs of all sizes use a LOT of gas.
Many RVs average only six to eight miles per gallon.
For a 20,000 mile cross-country road trip, expect to spend $7,500 to $10,000 for fuel!
Sure, You'll save a bundle on hotels, but your overnights will not be free.
If you want to settle in for a month in most parts of California, for example, you'll pay about $850 for a space with full power, water & sewer hookup.
Then there’s storage. Unless you’re planning on living in it full-time, you'll need to store your vehicle in the off-season. Many communities will not allow you to park this huge vehicle at your house.
You'll be looking at $100-200 a month, on average, for an outside storage lot.
Are you beginning to see where a detailed cost assessment and income plan to cover these expenses is so important?
David:
Absolutely, it’s important to plan this all out rather than winging it like most people would do!
For qualified callers to today’s show, we’re offering The Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This retirement income plan is ideally suited for anyone who is recently retired, within 5 years of retiring or currently retired, and has saved at least $100,000.
This isn’t some cookie-cutter plan that we’re going to pull out of a drawer and drop in the mail.
This analysis will be custom built with your name on it - for your specific situation. Pick up the phone right now. 1-855-500-7384.
Today, we’re talking about the mistakes people may make when they enter retirement.

Jeff:
Yes we are, David, and One mistake some retirees make is failing to budget for the unexpected.

It’s prudent to consider all the things that could occur in retirement that you might not be able to predict.

Remember that retirement may last thirty years or more years.

That’s a long time!

David:
Let me take a wild guess – unexpected health expenses.

Jeff:
Bingo – that’s probably the biggest one. It’s important to have some sort of plan to pay for an illness or long-term care need.

What if you or a loved one were to fall ill?

Have you considered the cost?

Some others we see a lot, are helping a family member in need…

Or, a market cycle that negatively impacts your portfolio.

What if the economy or the stock market has an adverse impact on your investments and your account balances?

Or, general house maintenance.

What if you need to replace the water heater?
Put a new roof on?

Or, what about something even more substantial: a car?

Or here are a few that might be more gradual, but can sneak up on you - the potential impact of inflation,
a rising cost of living,
or tax increases.

All of these things could have an impact on your finances.

David:
Those are some good examples of things that can throw a wrench into your retirement lifestyle, if you’re not careful.

We don’t want our clients to have to worry about their finances in retirement.

These are your golden years!

It’s about enjoying life, and planning well allows you to do that.

Jeff:
It’s true, David.

Another mistake we see all the time, is making an uninformed decision on your Social Security benefits.

We know that Social Security is a significant source of income for the majority of people we see.

Most have paid into the system for a long, long time.

They expect to get a Social Security benefit that will help them meet their retirement income needs – to a certain extent, at least.

If you have researched Social Security at all, you know that the earliest you can collect is age 62.

Full retirement age generally starts at 66 or 67, depending on when you were born.

The latest you can collect and see an increase in your benefits is at age 70.

Many media outlets and news articles are devoted to answering the question:

Do you take Social Security early (at age 62)?

Or, do you wait, delaying your benefits so that your benefits increase?

As with most questions pertaining to retirement strategies, the answer is – “it depends!”

Deciding when to take Social Security benefit payments depends on your personal needs, health and income situation, among many other factors.

David:
Jeff, we’ve talked a lot on the show about the concept of age-appropriate investing. Explain how taking on too much risk can ruin your retirement dreams.
Jeff:
David, as you know, we use a benchmark, or guideline, to assess someone’s age appropriate risk tolerance.
We call it the rule of 100.
So as an exercise, take the number 100 and subtract your age.
Whatever is left over is the percentage of your assets that should be exposed to market risk.
So let’s say you’re 50 years old, so 50% at risk in the market.
60 years old…40% at risk.
70 years old…30% of your portfolio should be in the market.
Now that’s just a benchmark or guideline. There is no one size fits all.
But sometimes the guideline doesn’t equal reality. We see it quite often -- we speak with someone who says they only want 10% of their money at risk, and we do an evaluation of their portfolio and we find that 97% of it is at risk.

David:
If you’re serious about making sure you have the right retirement game plan in place, it’s not too late to take advantage of our offer, but time is running out.
For qualified callers to today’s show, we’re offering The Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This retirement income plan is ideally suited for anyone who is recently retired, within 5 years of retiring or currently retired, and has saved at least $100,000.
This isn’t some cookie-cutter plan that we’re going to pull out of a drawer and drop in the mail.
This analysis will be custom built with your name on it - for your specific situation. Pick up the phone right now. 1-855-500-7384.

David:

When we return from short break –
More common mistakes many people make – and the easy ways YOU can avoid them.

See you in two minutes.

BREAK

David:
Welcome back to the Jeff Dixson Show. We’ve been talking about potentially disastrous blunders that many people make, shortly after they enter retirement.

Jeff:

That’s right David, and one mistake that can have long term consequences is investing too aggressively, or too conservatively in retirement.

We’re not talking about specific investments here; instead, we’re going to talk about investment decision-making, in general.

We know that, for many, this is an ongoing concern.

When we retire, we’re counselled to become more conservative.

This is because when those paychecks stop rolling in, we simply can’t afford to assume as much risk in our retirement years as we could in our working years.

The concept is simple enough: When we’re working, we aren’t spending our savings.

Instead, we are adding to it.

On the other hand, when we retire, we may not be adding to our investments and savings anymore.

In fact, in most cases, we’re usually doing the opposite: withdrawing from our investments and savings.

And when we start doing that, making up for losses incurred is much harder to do.

We talk often about taking appropriate risk with our investments. Just as you should guard against being too aggressive, it is possible to be too conservative, as well.

So, we all need to develop a solid financial strategy based on goals and objectives for our retirement - and not just the rate of return you are hoping to achieve.

David:
How should we go about doing that?

Jeff:
Here’s an approach: write down exactly what you want your money to do for you.

For example:
• Let’s say you want it to provide $1,500 a month in income
• Let’s also say you want to make the principal last so you can leave a legacy for your children and grandchildren
• Then we’ll want to adjust the income goal for the likelihood of future inflation
• And we’ll need to decide how easily we’ll want to access a certain amount of funds for emergencies or unpredictable expenses.

To accomplish goals like this, you’ll typically find that you may need to use a combination of different tools to help you work toward your retirement goals.

David:
Excellent information, Jeff!
We’re starting to get short on time. What’s another avoidable mistake, that you see people make way too often??

Jeff:
Perhaps the last mistake is the biggest mistake:

Not discussing your retirement goals and objectives with your spouse.

I can’t stress enough that we see far too many spouses and couples that simply don’t communicate with each other well enough prior to - and immediately following - retirement.

You absolutely must talk to your spouse to make sure that you are both on the same page with regards to a few specific things.

David:
And what are some of those things?

Jeff:
Let me give a little laundry list.

• The monthly budget, including what it takes to pay the bills and live comfortably…
• How you will each spend your free time and what it will cost…
• Vacationing and how you’ll spend the discretionary funds…
• Helping family members and parents…
• Down-sizing a home or moving to a new place…
• Part-time job expectations or income…
• And your Social life after retirement.

And that’s just the beginning.

David:
Jeff, let’s switch gears for a minute as we prepare for another break.
Nearly all investments come with some sort of fees. Is it best to just try to find the lowest fees possible?
Jeff:
First of all it’s important to note- Most people don’t know all the fees they’re paying.
In fact- we tell people that the two biggest culprits in eroding their retirement accounts are fees and taxes.
There can be fund expenses, and sales charges ,and fund-to-fund expenses.
So right up front, someone might be hit with a 5.75% sales load paid to the advisor, then on top of that, they could be paying a .25% 12b1 expense and a .75% management fee that’s paid annually based on the clients assets invested in that holding.
Fees can really add up and it’s important that you know what those fees are.
And a red flag with fees that we see - is when someone pays a front end load or commission to the advisor, then 6 months down the road, the advisor calls them up and says “hey, I think we should get out of this position and go into this investment instead”, they get another front end load and the client may or may not be in a better investment than before.
So we’re going to educate you on what fees you’re paying, how to look at fees, and how to understand and justify the fees you’re paying.
Because if you’re in a fund or investment that’s chugging right along and not performing any better than an index fund and you’re paying 1-3%, you’re riding the roller coaster and possibly paying unnecessary fees.
This erodes your retirement nest egg over the years.
But on the flip side, nothing is free and often you pay for what you get.
A fee might be justified by service, strategic advice, and active management.
The hard thing for people is to know what they’re paying, and deciding whether what they’re paying justifies what they’re receiving in value.
David:
There are a lot of factors to consider!
Whether you’re a sophisticated investor, or just a regular joe, anyone can benefit from a 2nd opinion.

For qualified callers to today’s show, we’re offering The Northwest Financial and Tax Solutions 8 Step Retirement Game Plan, absolutely free, by calling 1-855-500-RETIRE.
This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This retirement income plan is ideally suited for anyone who is recently retired, within 5 years of retiring or currently retired, and has saved at least $100,000.
This isn’t some cookie-cutter plan that we’re going to pull out of a drawer and drop in the mail.
This analysis will be custom built with your name on it - for your specific situation. Pick up the phone right now. 1-855-500-7384.
David:
So Jeff, what’s another fundamental mistake that people make?

Jeff:
Well this is one of my favorites, and unfortunately, I see this way too often.
Write this down.
You should NOT be paying taxes on money you’re not currently using.
When you come in to see us, we always ask you to bring your most recent tax return, among other documents. When I look at a tax return I always look for key areas in which people are paying taxes on money they shouldn’t be.
I had a couple who came into the office and they had $38,000 of interest and dividends, that became taxable. So on the front page of their 1040, that $38,000 jumped out at me.
Then on the 2nd page, after all their deductions, that money was added to their taxable income, and it bumped them from the 15 percent tax bracket, into the 25 percent tax bracket.
So not only did they pay taxes on more income…they paid a higher tax rate on ALL their income, because of that extra 38 thousand.
The point I’m making is this:
Sometimes, you can take money that’s taxable to you, and put it into a pocket where it’s not taxable until you take it out.
But their financial advisor didn’t talk to them about it, and their CPA didn’t talk to them about it either.
They were just putting entries into the right boxes rather than taking proactive step to decrease those taxes.

Another fundamental mistake – don’t settle for only one option.
I always tell people- there is no one size fits all, and there is no one perfect investment, and if you go to someone and they just try to sell you something and give you only one option … RUN, don’t walk, to the nearest exit.
Then there’s one that we need to share with our children and grandchildren - you cannot create wealth until you eliminate debt.
This is what’s happening to so many people in America, people are living way above their means, they’re not paying themselves first, and they’re not building a nest egg.
So if you have a lot of debt, keep that in mind. And by debt, I’m talking primarily about consumer debt – credit cards, lines of credit, revolving credit that typically carries a high interest rate.

David:
Jeff we’re almost out of time today on the Jeff Dixson Show.
Do you have any final thoughts?

Jeff:
The bottom line for today’s program is this:

Proactive planning for retirement requires a lot of attention to detail.
There are a lot of mistakes that we see people make all the time that could have been completely avoidable.

Step 1 is understanding what those mistakes are-
Step 2 is put into place a detailed and proactive plan to make sure you don’t fall victim to any of them.

The hardest thing about retirement planning is this-
You are making decisions today that will affect you for 20, 30 or even 40 years.
There are no do overs.
So to set yourself up to have the worry free retirement that you have worked so hard for and deserve, please check ALL of your boxes.
Most people don’t have a plan, they just have a bunch of investments.

I tell people all the time, you can have all the knowledge in the world but if you do nothing, that knowledge does you no good.

David:
Fantastic information, as usual, Jeff.
We are right at the end of the show today. If you’re still not sure if you have a truly strategic plan in place that accounts for all the most common retirement mistakes people make…let us go over all of it with you in our Northwest Financial & Tax Solutions 8 Step Retirement Game Plan.
This is something we offer completely free for qualified callers to the show.
How do you qualify? Just be within about five years of retirement, or be currently retired, AND have at least $100,000 saved toward your retirement. It’s that simple.
There is no cost, and no obligation.
To get your customized, personalized 8 Step Retirement Game plan, call right now 1-855-500-RETIRE, that’s 1-855-500-7384.
Don’t be mistaken, though – you’re not ordering a pre-printed, cookie cutter brochure that we’re going to pull out of a drawer and drop in the mail. This is customized especially for you.
We say it all the time. It never hurts to get a 2nd opinion on your plan for retirement ESPECIALLY if that 2nd opinion is coming from an independent fiduciary, who is legally obligated to do what is in your best interest.
Again, pick up the phone right now and give us a call - 1-855-500-7384.
Jeff:
I hope you enjoyed the show today on avoiding common retirement mistakes.
We hope to have the chance to talk, so we can get a retirement game plan in place for you.
Did you miss anything? Need to revisit any of the subjects we talked about today? Go to www.Jeffdixsonshow.com and listen to the show again. Today’s show, an d many of our past shows, are there. That’s w-w-w dot jeff D-i-x-s-o-n show, dot com.
Or, go to iTunes, and search for The Jeff Dixson Show.
I want to congratulate you for joining us today. You’ve taken an important step toward being able to live the life you want to lead in retirement. The next step – is giving us a call.
If you learned just one thing from today’s show – if we made you stop and think, even one time – pick up the phone and give us a call.
Please join us again next week for the Jeff Dixson Show – same time, same station. For my co-host David Topper, and myself - Have a great week everyone.

May 18, 2018 02:59 PM PDT

Six Questions All About The Money!
Figure out your answers before you retire and do yourself a world of good!

Jeff:
Welcome to The Jeff Dixson Show “coaching you to and through retirement”. I am your host, the retirement coach, Jeff Dixson. I am joined today, as usual, by my co-host, a financial advisor at Northwest Financial & Tax Solutions, David Topper.

We have had the honor of being on the airwaves for a number of years now.
Our goal is to bring you relevant and useful information that YOU can use on your journey to plan and prepare for a successful retirement.

If you’re lucky enough to be already retired, we also do our best to provide you a good lens that you can look through to determine whether you’re making the appropriate steps to make it through successfully.

In our experience, prudent retirees and pre-retirees plan and educate themselves.
Tuning in today is a GREAT step.

The single most important question that we ask ourselves when we determine what to talk about every week is this, “what information can we provide that will help people?”

This week, we’ve decided to talk about 6 fundamental questions every retiree and pre-retiree should ask themselves.

David:
The First question is: Can I afford to retire?

Jeff:
This is a question we hear all the time from people looking for a 2nd opinion.

Now, it’s easy to brush over this question because it seems so simple.
But you would be surprised how few people even ask themselves this basic question.
There are a lot of layers that come into answering it.

You would be amazed at how many times I have people who ask me “how much money do I need to retire?”

A lot of people say, “well I just figured I needed $1 million or $2 million to retire”.
That’s just a number.
Typically my follow up question to them is “based on what?”
Seriously.
You say you need $2 million dollars to retire.
How did you get that number?

Usually I get shrugs and blank stares.
When I work with someone, I have to get them to understand retirement in it’s truest and simplest form.

Retirement planning, while complex, boils down to 1 simple fact-
Your plan should be wholly focused on creating an income stream that will be used to finance your fundamental and discretionary expenses until the day you and your spouse pass away.

If someone shoots for this big number in the sky, without understanding the true end goal… that would be like them heading out for a cross-country trip…and just driving, with no destination, and no idea where they’re going.

That goal – is INCOME.

David:
Ok… so how does one figure out if they can “afford to retire”?

Jeff:
You have to work backwards.
And I’m going to simplify this… but start with your fixed expenses.
Put on paper your current fixed expenses such as your mortgage payment, water bill, heating bill, utilities etc.

Then look critically at those and figure out if any of them will go away when you retire.
For example, a lot of people like retiring without a mortgage.
When will your mortgage be paid off?
We have seen a lot of people, especially in the baby boomer generation, who buy a few houses and upgrade their home size as they get later on into their years and their families grow, signing up for 30 year mortgages that have pay off dates into their retirement years.

This is an individualized conversation, but we do see a lot of people downsizing, getting out of their $500-600K home and into a $300 or 400K home, thus cutting down, or completely eliminating their mortgage.
That makes a huge difference in retirement

Next, look at your lifestyle expenses.
These are things like going out to dinner, playing golf, traveling and hobbies.
These are expenses that will likely go UP during retirement, not down, because you have more time to do what you want to do.

While you’re working, the day you spend the most money is on Saturday because you have time to spend money.

In retirement, every day is like Saturday.

Once you’ve added up expenses, you have to calculate for inflation.
A good bet, is to plan for inflation at 3% per year.

Typically, we plan out for 20 or 30 years.
Then you’ll have an idea of how much money you’ll need on an annual basis to finance your lifestyle.

David:
For qualified callers to today’s show, we’re offering The 8 Step Retirement Game Plan, by calling 1-855-500-RETIRE.
This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This retirement income p lan is ideally suited for anyone who is recently retired, within 5 years of retiring or currently retired, and has saved at least $100,000.
Get your own, customized 8 Step Retirement Game Plan, give us a call - 1-855-500-RETIRE. That’s 1-855-500-7384.
This isn’t some cookie-cutter plan that we’re going to pull out of a drawer and drop in the mail.
We will custom build this analysis, with your name on it - for your specific situation. Pick up the phone right now. 1-855-500-7384.
So Jeff – when deciding how much you need to retire comfortably…you’re basically working backwards?

Looking at what you’ll need to spend, to figure out how much you’ll need to have.

Jeff:
That’s absolutely right, David.
When we sit down with someone, we walk through this with them.

It’s actually very fun, because when we’re trying to estimate costs, we want people to dream a little.

What are those things you’ve been putting off for years, that you’ll finally have time to go and do.

We’ve had clients who had dreamed of doing cruises through the panama canal, going on fly fishing tours of Montana, jumping in their R-V and just exploring the country.

You name it, we’ve heard it.
And that’s one of the most fun parts of our jobs because we can then work with them to figure out how to realistically make it happen.

To do this right, you have to have map it out.
And just because we have the conversation and you think that you might want to do something now, doesn’t mean you’re locked in and HAVE to do it.
It just gives us an idea of what we need to cover.

David:
But after you have this framework, this estimate of your costs during retirement, THEN you start looking at income?

Jeff:
You’re absolutely right, David.
So fundamental question #2- how will you finance your estimated fixed and variable expenses?

But I want to tell you up front, we do this a little differently. This process we go through with folks isn’t the process you’re going to find everywhere.

Let’s talk about how most financial advisors work.

Most advisors seek to figure out how much money you have, ask you some basic questions about risk tolerance and investment goals, and then they propose a bunch of investments.

In other words they’re just trying to sell you something.

There is a huge difference between that approach – and ours.

Your plan should be based on YOUR needs.
Your risk tolerance.
Your timeline.
Understanding YOU is the key part of it all.

The plan should be a conduit or a channel to addressing YOUR specific situation.

I’m the President and Founder of an independent wealth management firm.
Our name is Northwest Financial & Tax SOLUTIONS.

The key word being “solutions”.
Because if you don’t have solutions, you just have a bunch of investments, which is not a plan.

David:
So to recap what we’ve talked about so far –
don’t just have a bunch of investments. Make sure your investments are working to accomplish your goals. So explain how we go about using the knowledge of someone’s income needs to create an income plan?

Jeff:
David, we start by looking at your different income sources.
Most people will have social security.
So we start by looking at that.
Making decisions for social security in a vacuum is a mistake we see all the time.

David:
Expand on that for us.

Jeff:
You can’t just make social security decisions without knowing how it will fit into the rest of your plan.

Here are some basic facts on social security. There are two different types of benefits.

SSDI, or disability benefits, which is a program through the social security administration that pays benefits to disabled persons with limited income as well as individuals over age 65 with limited income. Then there’s “old age/ survivor benefits”, which is what most of us draw after age 62.

Here are some key bullet points to remember.

• Your benefits are based on your 35 highest earning years.
• To qualify for benefits you must have at least 40 work credits. You can earn up to 4 credits in any given year and you must earn a certain amount of money in that year to get each credit.
• The earliest you can claim for benefits is 62 years old.
• If you claim for benefits prior to your “full retirement age”, your benefits will be reduced. For most people, full retirement age is 66 or 67 years old.
• Depending on the year you were born, your full retirement age will be different and the percent your benefits will be reduced will also be different.
• This next part is extremely important, so take note. The later you wait to claim up to age 70 will increase the size of your monthly social security check.

David:
We say it all the time, “you can’t get a second opinion from the person who gave you the first” and that rings true for retirement planning.

Do yourself a favor, if you’re within 5 years of retiring or you’ve recently retired and you have saved at least $100,000…. Pick up the phone right now.

We can provide you with a comprehensive analysis on your current portfolio and it won’t cost you a nickel.

For qualified callers to today’s show, we’re offering The 8 Step Retirement Game Plan, by calling 1-855-500-RETIRE.
This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This retirement income plan is ideally suited for anyone who is recently retired, within 5 years of retiring or currently retired, and has saved at least $100,000.
Get your own, customized 8 Step Retirement Game Plan, give us a call - 1-855-500-RETIRE. That’s 1-855-500- 7384.
We will custom build this analysis, with your name on it - for your specific situation. Pick up the phone right now. 1-855-500-7384.
Ok Jeff – you talked about different scenarios for claiming social security benefits. Is there an ideal time to claim for benefits?
Jeff:
David, when you should claim for benefits is no cut and dried answer.
It’s really dependent on a number of factors including your family longevity, whether you’re married, your other retirement assets, your retirement date, your income needs, your health, and more.
So it’s all about us, asking you the right questions.
David:
It really brings light to the importance of comprehensive planning and working with someone who can discuss how your social security will work within an overall retirement plan.
Let’s go through one example, Jeff.
Let’s say George and Julie are both 62 years old.
They know that this is the earliest they can claim for benefits, but they don’t know if they should claim yet. Julie has pretty much stayed home her whole adult life taking care of things at home, and George has been the bread winner.
He has $500 thousand in his 401k at his current employer.
George makes $100 thousand a year in his job, and maxes out his 401k contribution every year. He isn’t tired of working so he wants to work for “at least a few more years”.

Jeff:
Really good example, David.
There’s a lot to unpack here. First of all, if they’re turning 62 in 2018, they were born between 1945 and 1956 which means their “full retirement age” is 66. They’re right on the edge of that range. It goes up from there in later years, 66 and 2 months, 66 and 4 months etc.
Julie hasn’t worked much, so it’s unlikely she’s accrued enough work credits in her lifetime. BUT she WILL still be eligible for spousal benefits based on George’s working record.
Important point - She cannot apply for spousal benefits until George has filed for his benefits.
If George is fine working for a few more years and they have a sufficient income, I would suggest he waits to file for social security until he actually retires.
Because, if you do file for social security, and continue to work and make a certain amount of money, your benefit will be reduced, and reduced BIG. Social security will keep a dollar, for every two dollars that you make working.
Here’s another thing to consider. Most people don’t know this. Up to 85% of your social security benefits can be taxed if you have income over a certain amount.
So it’s very likely that if they George & Julie filed for social security while George was still working, a large portion of their benefits would be taxed.
So you gotta keep that in mind.
This taxation of your money is often not considered.
So my recommendation would be that if George still wants to work, wait to file for benefits.
Then the next question would be- what sort of income will they need to live on when he does retire, and no longer has a paycheck coming in.
I’d drill down with them on some of the questions we discussed earlier, such as looking at their fixed and variable expenses, to figure how much money they’ll need every month.
We’d have to talk in greater depth about their risk tolerance, investment experience and liquidity needs.
Depending on what we found out, we’d have an idea of which tools might make sense for them to create that necessary income.
It could be possible that instead of having to file for benefits right when they retire, that they could bridge the gap with income from their investments to let the benefits grow and maximize.
So this is a huge decision that every retiree needs to make, hopefully before they retire so they have a retirement game plan.
One side note I want to put out there. If George is over 59 ½, and he has money in a 401k at his current employer, he might be eligible for an in-service withdrawal where he could roll money over from that 401k into an IRA to begin building that retirement income plan.
He wouldn’t close the 401k, and would still be able to take advantage of any match his employer contributes, but an IRA typically opens up more investment options than a 401k.
David:
Great information, Jeff.
There are so many different angles from which to view a retirement income picture.
Obviously, merely selecting investment options isn’t where the story begins - or ends - but it is an important piece.
It’s not too late, if you’re serious about making sure you have the right retirement game plan in place, we have a very attractive offer for you.

For qualified callers to today’s show, we’re offering The 8 Step Retirement Game Plan, by calling 1-855-500-RETIRE.
This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This retirement income plan is ideally suited for anyone who is recently retired, within 5 years of retiring or currently retired, and has saved at least $100,000.
Get your own, customized 8 Step Retirement Game Plan, give us a call - 1-855-500-RETIRE. That’s 1-855-500-7384.
This isn’t some cookie-cutter plan that we’re going to pull out of a drawer and drop in the mail.
We will custom build this analysis, with your name on it - for your specific situation. Pick up the phone right now. 1-855-500-7384.

Jeff, I think the conversation about how to make decisions about different income sources gets a little more complicated when you throw in non-qualified money, pensions, rental properties, Roth IRA’s, et cetera.
Jeff:
You’re absolutely right, David. It’s a big puzzle.
There are a lot of factors that go into every individual’s retirement income planning.
One thing I want to talk about is something I’ve covered many times on the show before, but it’s incredibly important: the need for every married couple to have three financial plans.
Now keep in mind that most people don’t even have one financial plan in place.
They might have an IRA, 401k, cash in the bank or real estate, but again - that’s not a financial plan and certainly not a retirement income plan.
If you’re married, you’re making decisions that will affect the other person’s income for the rest of their life.
Plan A- what if you both live to be 100 years old. Do you have an income plan to take you both all the way to the end? People are living longer than ever, and outliving your money is a legitimate worry.
Plan B- What happens to MRS if MR dies first? How will her cash flow change, if he passes away and his benefits are altered?
And then of course, Plan C- what if MRS dies first? How will HE be affected?
Typically upon the death of the first spouse, the household cash flow changes.
Let’s take George and Julie’s situation as an example.
Plan A- if they both live to be 100 years old. They need to make sure that the income stream they create from their own personal savings and investments will last that long to cover their needs. Depending on when they retire, that could be 35 or 40 years!
Many retirement plans have a withdrawal strategy for drawing down assets.
If they plan to have drawn down their assets by 95 years old, and everything goes according to plan, they’ll be sitting there at 95 years old with no money left in their IRA. That leaves only social security for them to live on.
That’s IF everything goes according to plan.
Depending on how your income plan is constructed, you will be given a likelihood of not running out of money.
How would you like to be given an 85% chance of not running out of money before age 90?
Make sure you know how much of your income is reliable and able to be counted on, as long as you live.
David:
A lot of uncertainty there, but what you’re saying essentially boils down to a single point… you need to know, if you’re presented with a withdrawal strategy from an advisor, what are the chances that model will FAIL?
Jeff:
Exactly Right. And we could teach a college course on how the 5 most popular traditional investment models work, the pros and cons of each, and really get into the nitty gritty of each one of them, but most people wouldn’t care to take the time to understand it.
But it basically comes down to - knowing the reliability of your plan.
How much of your portfolio is guaranteed, and how much of your income is guaranteed?
If you’re using only traditional investment vehicles, stocks, bonds and mutual funds, the likely answer is – none of it! That’s right, none of that income is guaranteed.
One thing I like to say is- if you withdraw your assets, you’re killing off the goose that lays the golden eggs.
If you have a goose, that goose is going to keep on laying eggs.
It’s having enough money, making money, so you don’t have to go back to work.
David:
I think that pretty much covers Plan A.
What about Plan B- what happens to MRS if MR dies first?
Jeff:
If George dies first, the household immediately loses one social security check.
Julie will keep the larger of the two (in this case, George’s) but not both.
So she not only lost her spouse, she also lost a big chunk of her household income. Nice, huh.
Now, let’s say for example that George had a pension, too.
Typically… a pension is going to have options for a single life, joint life (which covers his spouse) or a lump sum.
If George had the choice and chose to take a single life- that would mean that the monthly annuity payment from his pension would be as large as possible for his lifetime- but when he passes away, the pension goes away too.
A joint life option would mean that the payment was smaller, but it would continue after George is gone, as long as Julie lives.
And for some plans, you can take a lump sum, which would mean that that money could be rolled into the IRA which would mean that Julie would still be able to create income from it even after George passed away.
Choosing whether to take any of these options is a complicated question which ultimately must be decided taking your ENTIRE financial picture into consideration.

David:
If you’re serious about making sure you have the right retirement game plan in place, it’s not too late to take advantage of our offer, but time is running out.
For qualified callers to today’s show, we’re offering The 8 Step Retirement Game Plan, by calling 1-855-500-RETIRE.
This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This retirement income plan is ideally suited for anyone who is recently retired, within 5 years of retiring or currently retired, and has saved at least $100,000.
Get your own, customized 8 Step Retirement Game Plan, give us a call - 1-855-500-RETIRE. That’s 1-855-500-7384.
This isn’t some cookie-cutter plan that we’re going to pull out of a drawer and drop in the mail.
We will custom build this analysis, with your name on it - for your specific situation. Pick up the phone right now. 1-855-500-7384.

Jeff, you started talking about Pensions. It’s a fact – in recent years, Pensions have been going away. There are still a lot of PERS pensions out there for some of our clients who work in Oregon, as well as a few corporate pensions. What would you recommend someone look at if they’re facing a pension decision?
Jeff:
Frankly, PERS pensions are pretty good.
Just because you have a PERS pension doesn’t mean you shouldn’t talk to an advisor who specializes in retirement income, because you still want that pension to work within your overall plan.
Each one of these questions is a very important piece of your retirement puzzle.
If you don’t have a PERS pension, you want to see if you could beat the monthly benefit by using an alternative investment strategy.
It never hurts to poke around, and frankly, I’d base my decision on math and what you value.
If you’re married, and you have sufficient other retirement assets and social security to cover your spouse after you pass away, you might want to take the single life pension.
Probably the best plan would be to just sit down and have a conversation!
David:
Ok so that covers Plan B – what happens to MRS if MR dies first.
Isn’t Plan C Pretty much the same idea, just reversing it looking at the income sources she brings to the picture?
Jeff:
It is, David. Plan C doesn’t require a lot of additional explanation. But those three financial plans for a married couple are very critical.
It’s very simple math.
When you come to see us, we do a demonstration to show you how the goose lays the golden eggs in Plan A, B and C.
It’s a simple process and our clients and prospective clients love it, because it’s a real eye-opener.
David:
So we’ve gone through four questions-
Can you afford to retire?
How will you cover your fixed and variable expenses in retirement?
How should you look at claiming for social security?
How might a pension play into the picture?
Another question that we think you should consider… is How do you know if you’re really getting good quality advice?
Jeff:
Here are some things you should look for in an advisor:
1) Are they a “fiduciary”- meaning, are they legally obligated to do what’s in your best interest? You can ask them directly.
2) When you first met with them, did they ask to see your tax return?
Are they seeking to help you make the best tax decisions possible?
3) Have they educated you?
This one is quite extensive, but incredibly important. If you’re walk out of a meeting with your financial advisor, and you’re confused…that’s a red flag.
When you meet with us these questions about your portfolio:
1) Why do you have each of these investments?
2) How do they work? Do you know what you’re invested in?
3) What fees are you paying on those investments? ALL of them?
4) What are the tax advantages or disadvantages to each of these investments?
5) What income can you expect from these investments either now or in the future?
6) What is your exit strategy?

I’ve asked these questions to people over the years and I almost always get the answer “I don’t know”

Every investor should know these answers. Every investor is capable of knowing these answers. If you’re working with the right retirement coach… someone who can explain why your investments work the way they do.
There are so many investment options out there.
Stocks, high yield bonds, government bonds, investment grade bonds, dividend equities, growth equities, mutual funds, options, ETF’s, REITS, fixed annuities, variable annuities, fixed index annuities, international equities, business development companies…and that’s just scratching the surface.
Your advisor should educate you on all of your options, the pros and cons, and let you choose which makes the most sense for you.
Another thing to ask about your advisor: Have they educated you on your options for taking social security?
Have they educated you on how your social security strategy should work hand-in-hand with your investment strategy?
Do they meet with you on a semi-annual or quarterly basis?
If they are meeting with you, are they presenting you with opportunities, or tweaking your strategy to fit your needs and stage in life?
And don’t forget about fees. Are you paying too much in fees while you’re not receiving value?
Do you even know how much in fees you’re paying?
Do you have a proactive plan that accounts for the possibility of a market correction, increased taxes in the future or higher inflation? Or has your advisor not talked with you about these things?

Most people don’t know how to evaluate whether they’re getting the help they need and deserve.
The keys I’ve just mentioned, in my opinion, are essential to a job well done.
The bar for entry in the financial industry is far too low.
There are many firms hiring kids right out of college, throwing them out in the world, and telling them to “go find some clients and make a buck”.
David:
Every week we meet with people who call into the radio show.
They come from all walks of life, levels of education, and levels of experience in investing.

There is only one thing they all have in common.
They want to make sure that their plan for retirement is the RIGHT ONE… and is going to take them to the finish line.
We say it all the time, “you can’t get a second opinion from the person who gave you the first” and that rings true for retirement planning.

Do yourself a favor, if you’re within 5 years of retiring or you’ve recently retired and you have saved at least $100,000…. Pick up the phone right now.

We can provide you with a comprehensive analysis on your current portfolio and it won’t cost you a nickel.

When you come in, we’re going to take a deep dive into your current investments, see if there is any overlap in your portfolio, assess the level of risk your portfolio has, look at the fees, tax efficiencies, have our CPA examine your tax return, talk with you about your estate planning and legacy needs… It truly is a COMPREHENSIVE analysis.

In the end, you will know exactly where you stand and if there are any gaps in your plan.

To start the ball rolling on yours, give us a call right now: 1-855-500-RETIRE.
That’s 1-855-500-7384.

Jeff, how about we finish up today with a discussion on how to create retirement income.

Jeff:

I’d like to preface this whole section of the show by saying- we don’t endorse every one of these strategies.
In fact, we disagree with many of them. But we want to give you the high level information to be able to know what is out there.
The First thing is Rental income.

Whether you buy a second property or rent out space in your own home, becoming a landlord can be a good way to generate passive income.

Keep in mind, though, that becoming a landlord could also be a very active endeavor.

Finding renters and maintaining a property can take a considerable amount of work and hiring a manager can eat away at your profits.
Those are a couple things you should consider.

It all depends on how you structure things.

It’s all about looking at the pros and cons, the opportunity cost, and how much time and effort you want to invest.

Another option would be to create a side business.
Creating a side business during retirement can be a good investment of your time early on, especially if you start the business with a plan to turn it into a passive income stream in a few years.

Whether you run a local brick-and-mortar business, or a website, you should start with the goal of eventually hiring others to run the business for you.

If you already own a business, even if it's currently just a side business, consider ways you can turn your active income to passive income.

Then when you get to your retirement years, you can continue to reap the rewards of business ownership without all the daily maintenance running a company often entails.

The "safe" principal withdrawal rate is the subject of much debate and analysis, but you should consider the popular “three percent rule" as a starting point for your investigation.
I recommend that you think long and hard about the withdrawal rate that is most appropriate for your age and circumstances. Do the math.
At a three percent withdrawal rate, your income stream might not be what it could be with other strategies, so take all these things into consideration.
Another thing you can do…is Use only your interest and dividends.
This method virtually guarantees that you won't outlive your money, since you aren't dipping into your principal – only the interest and dividends that you earn.
It also offers maximum flexibility and control over managing your retirement resources, with the potential to leave a monetary legacy to children or grandchildren or charities.
Those are choices you need to plan for.
The downside?
The success of this method depends on the base investments that are producing the yield.
You might find a consistent 2% with some asset classes while 6-8% with others, it just depends on how you build it.
Now, an income strategy that we hear about all the time are Annuities.
There are actually four types of annuities:
You have the single premium immediate annuity- you give a chunk of money to an insurance company, they calculate how long they think you’ll live and they promise to give you a set amount for the rest of your life.
They hope you die young, because after you die, in many annuities, they keep the rest of your money.
Other annuities might have a 5, 10 or 20 year guarantee, so if you die along the way, that money will go to someone you love and care about.
Then we have a fixed annuity.
These typically pay about 3 percent, and as the name suggests, that rate does not change.
Then you have the ever popular variable annuity.
These annuities allow you to still be invested in the market but with certain guarantees, like a death benefit guarantee, or an income benefit guarantee.
Sometimes people think they’re paying 1 or 2% but when we break it down with the company over the phone they are flabbergasted to find out they’re sometimes paying, 4-5% in fees!
We want to keep your hard earned money in your estate, and not send it to the insurance company or the government.

David:
That’s a lot of great information about annuities. Hope our listeners are taking notes!
What other income-producing strategies have you seen, Jeff?

Jeff:
David, another strategy we use quite often is building a bond ladder.
Bonds are very different from equities – in fact they are debt instruments - and with interest rates going up, bonds can come down. But the good thing about them is, as long as you hold them to maturity, then you’re ok.
David:
The vast majority of Americans…and this may include you…are completely lost on the road to retirement.

They couldn’t tell you how and where their retirement money is invested.
They can’t answer the most basic questions about their investments:
• Why do you have each investment?
• How do they work?
• What are the fees with your investments?
• What are the tax advantages or disadvantages with each investment?
• What income can you expect from each investment now or in the future?
• What is your exit strategy?

Most people’s plans are nothing more than a bunch of guesswork.

And when you think about it…that’s frightening when you consider this is an event that could last 20, 30 even 40 years of your life.

But you have the opportunity to change the course you’re on right now…

For qualified callers to today’s show, we’re offering The 8 Step Retirement Game Plan, by calling 1-855-500-RETIRE.
This comprehensive portfolio analysis and 2nd opinion is designed specifically for you, and there is no cost or obligation. In this review you will receive:
1. A Portfolio Review
2. A fee analysis
3. A Tax Review
4. An Estate Plan Review
5. Retirement Income Plan
6. Social Security Maximizer Report
7. A life insurance check up
8. AND a free autographed copy of Jeff Dixson’s book “Winning the Retirement Game”

This retirement income plan is ideally suited for anyone who is recently retired, within 5 years of retiring or currently retired, and has saved at least $100,000.
Get your own, customized 8 Step Retirement Game Plan, give us a call - 1-855-500-RETIRE. That’s 1-855-500-7384.
This isn’t some cookie-cutter plan that we’re going to pull out of a drawer and drop in the mail.
We will custom build this analysis, with your name on it - for your specific situation. Pick up the phone right now. 1-855-500-7384.

Jeff, we are out of time. That was a quick hour. Any final comments?

Jeff:
On today’s show, we addressed six of the most burning questions we hear from people about retirement.
We talked about determining how much income you need during retirement, by getting a firm grip on your expenses, and developing a plan to finance those expenses. Those are the first two.
Then, we broke down the variables that go into deciding when – and how – to start collecting social security…
The important things to consider when making decisions about drawing your pension, if you’re lucky enough to have one…
Coached you on selecting the right financial advisor for your needs, and the criteria to base your decision on…
And finally, we discussed different strategies you can use to create INCOME in retirement.
Did you miss anything? Need to revisit any of the subjects we talked about today? Go to www. Jeffdixsonshow.com and listen to the show again. Today’s show, and many of our past shows, are there. That’s w-w-w dot jeff D-i-x-s-o-n show, dot com.
Or, go to iTunes, and search for The Jeff Dixson Show.
I want to congratulate you for joining us today on the Jeff Dixson Show. You’ve taken an important step toward being able to live the life you want to lead in retirement. The next step – is giving us a call.
If you learned just one thing from today’s show – if we made you stop and think, even one time – pick up the phone and give us a call.
Join us again next week for the Jeff Dixson Show – same time, same station.
Until then, for my co-host David Topper, and myself - have a great week everyone.

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