Retirement Plan Live: The Impact of the Bear Market
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Retirement can be tricky. There are so many unknowns, so preparing yourself mentally can be a challenge.\\xa0
Mental toughness is the ability to remain positive and proactive in the most adverse situations. Our Retirement Plan Live volunteer, Rosie, is having to rely on mental toughness to stay on target through an extra challenging early retirement.
Join Rosie and me today as we discuss the impact that the bear market had on her finances at the start of her retirement.\\xa0
Rosie is trying to get her retirement back on track
Rosie and her husband Dwayne didn\\u2019t retire in the best circumstances. Inflation and market fluctuations haven\\u2019t been on their side. This sequence of returns at the beginning of their retirement is not faring well for their portfolio. Now they are trying to assess whether they are on a feasible path or whether they\\u2019ll need to make some adjustments.\\xa0
Simply by walking through this process they are already being proactive. They are assessing the damage and seeing how they can shape a plan for the future to get back on track.\\xa0
It\\u2019s challenging to enjoy the go-go years without a safety net
While Rosie is more risk-averse, her husband Dwayne enjoys researching and investing in individual stocks. He uses about 10% of their total savings to play around in the market investing in his favorite publicly traded companies.\\xa0
Rosie estimates that about 75% of their total portfolio is in stocks and this makes her feel a bit anxious especially since their portfolio is down about 20% from last year.\\xa0
She would like to be enjoying her go-go years, however, without a healthy cash reserve in place, or a long-term care plan, she doesn\\u2019t have the security in place to let loose and rock retirement.
Without a cash bucket set up, their $8,500 per month is coming from a systematic selling of their investments, but she\\u2019s not sure where they should go from here.\\xa0
Don\\u2019t miss the culmination of the past four episodes
If your retirement isn\\u2019t going to plan, it is important to acknowledge where you are now so that you can mitigate the damages and reset your course. You can\\u2019t simply ignore the situation and wait for someone to tell you that everything is going to be okay. You\\u2019ll need to understand the nuances of your financial situation to determine the best way forward.\\xa0
Join us on February 2\\xa0at 7 pm CST for the grand finale of this year\\u2019s Retirement Plan Live. I\\u2019ll walk Rosie through her retirement plan and we\\u2019ll determine whether or not it is feasible. Then we\\u2019ll look for risks and opportunities. As a participant, you\\u2019ll have the opportunity to ask questions and see how the process plays out.\\xa0
After the live meetup, consider joining the Rock Retirement Club. The Club was created to give new retirees a solid framework and trusted tools to use to build a feasible, resilient retirement plan that will give members the confidence to rock retirement. In addition, RRC members have created an amazing, inviting community filled with people on the same journey. Learn more by joining the live meetup.\\xa0
OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN
RETIREMENT PLAN LIVE
- [4:47] Rosie\\u2019s questions
- [7:12] Understanding Rosie\\u2019s annuity
- [16:52] Understanding the software we use
- [18:32] Understanding the sequence of returns risk
- [27:07] Rosie\\u2019s experience with advisors
LISTENER QUESTIONS
- [36:36] Do you calculate using tax-deferred dollars to create a paycheck in retirement?
- [44:32] Using a draw-down strategy for a 401K
- [47:57] How to get a better interest rate from cash
TODAY\\u2019S SMART SPRINT SEGMENT
- [50:40] Reassess your trajectory to achieving your goals
Resources Mentioned In This Episode
Join the live meetup on February 2 at\\xa0LiveWithRoger.com
Money Guide Pro Elite\\xa0retirement tool
Roger\\u2019s YouTube Channel -\\xa0Roger That
BOOK -\\xa0Rock Retirement\\xa0\\xa0by Roger Whitney
Roger\\u2019s\\xa0Retirement Learning Center
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