BROADCASTS.com

b'

This month we are answering your listener questions. If you have a question that you would like answered on the show you can jump the line a bit and take the fast track by submitting an audio question. Head on over to\\xa0RogerWhitney.com/AskRoger\\xa0and hit record to submit your question.

Today I answer questions on a broad range of topics from paying off a mortgage on a rental property to determining the right balance for investment when there is a significant pension to whether to use a loan to pay for life while the market picks back up. Listen in to hear my thoughts on these questions so that you can not just rock retirement but rock life as well.\\xa0

Update your net worth statement (even if it is painful to look at)

How often do you update your net worth statement? It is important to do so annually or every 6 months. I recommend this exercise because your net worth statement is a fantastic tool that shows you the financial impact of the decisions you make.\\xa0

However, due to the recent market volatility, opening your monthly investment statements isn\\u2019t as much fun as it used to be. Regardless of this fact, it is still important to understand where you stand financially so that you can work to improve your financial decisions.\\xa0

Should Tyler pay off his rental property mortgage?\\xa0

Tyler is still young, has no debt besides his rental property, and is a great saver. He is wondering if he should pay off the mortgage on his rental property. The traditional wisdom is to keep the mortgage. Since he has a low-interest rate, mathematically it doesn\\u2019t make much sense to pay it off. But that doesn\\u2019t mean he shouldn\\u2019t pay it off.\\xa0

These types of decisions are rarely about math. It is important to factor in personal feelings as well. Tyler needs to consider all the factors involved and come to a decision that is uniquely his own. There is no wrong answer to this question. What is most important to consider is which choice will give him peace of mind.\\xa0

Should all of Adam\\u2019s investments be in equities since he\\u2019ll have a pension?\\xa0

Adam will soon retire from the military with a $70,000 per year pension. He feels that the traditional 60-40 retirement portfolio won\\u2019t be aggressive enough since he has such a large pension. So, he is wondering if all his investments should be in equities.\\xa0

Instead of building your portfolio first, start by creating a retirement plan of record to forecast what you need to live a great base life. Consider your income from social capital (Social Security, pension), financial capital (investments), and human capital (work).\\xa0

Once you understand how much financial capital you will need, then you can build your pie cake which consists of an emergency fund and a secure income floor with 5 years of spending. Since you have 5 years of prefunded income, then you can invest as aggressively as you would like. This system is a fantastic way to help guide your spending in retirement.\\xa0

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

PRACTICAL PLANNING SEGMENT

• [2:25] Opening your monthly statement isn\\u2019t as fun as it used to be

LISTENER QUESTIONS

• [5:00] Should Tyler pay off his rental property mortgage?
• [9:40] Should all of Adam\\u2019s investments be in equities since he\\u2019ll have a pension?\\xa0
• [16:50] Is there a method for deciding the best location to move to in retirement?
• [23:44] Using a loan vs. cashing out on stocks during a bear market
• [29:40] On reframing old age
• [31:38] Pros of cons of timing retirement

TODAY\\u2019S SMART SPRINT SEGMENT

• [37:00] Update your net worth statement

Resources Mentioned In This Episode

Boomer Benefits

Ted Lasso

Episode 412 -\\xa0What Is a Retirement Plan of Record?

Episode 310 -\\xa0Investing in Retirement: The Pie Cake\\xa0

Rock Retirement Club

Roger\\u2019s YouTube Channel -\\xa0Roger That

BOOK -\\xa0Rock Retirement\\xa0\\xa0by Roger Whitney

Roger\\u2019s\\xa0Retirement Learning Center