November 25, 2024 Weekly Update

We do love it when someone refers a family member or friend to us.  Sometimes the question is, “How can we introduce them to you?”   Well, there are multiple ways but a very easy way is to simply forward them a link to this webpage. Here are this week’s items:

Portfolio Update:  Murs and I have recorded our portfolio update for November 25, 2024

The Four Phases Of Retirement

Radon and Murs discuss the fascinating journey of transitioning into retirement with special guest Dr. Ridley Moynes, author of The Four Phases of Retirement. This episode dives deep into the emotional, mental, and financial aspects of retirement, addressing the critical question: “Is retirement only about money, or is there more to finding purpose in retirement?”…  

The Four Phases Of Retirement

We talked to Dr. Riley Moynes, author of The Four Phases of Retirement, and he takes a unique approach to understanding this pivotal stage of life. While money remains a critical component of retirement planning, Moynes emphasizes the need to address the deeper, often-overlooked challenges…..

The Four Phases of Retirement

Retirement. It’s a word that stirs up images of freedom, relaxation, and maybe even the long-dreamed-of beach house. But while most of us imagine retirement as the ultimate escape from work, the reality can be far more complex. Transitioning from decades of structured routines and professional identity to a life of open-ended days isn’t as straightforward as it seems. In fact, retirement is more than just a financial milestone—it’s an emotional, psychological, and social transformation.

We talked to Dr. Riley Moynes, author of The Four Phases of Retirement, and he takes a unique approach to understanding this pivotal stage of life. While money remains a critical component of retirement planning, Moynes emphasizes the need to address the deeper, often-overlooked challenges. What will your purpose be? How will you handle the loss of structure and identity that work once provided? And perhaps most importantly, how can you squeeze all the juice out of retirement? Let’s delve into these four phases of retirement to uncover not just how to retire comfortably, but how to thrive in life after retirement.

Phase One: The Vacation Phase

Imagine waking up without an alarm, sipping coffee on your patio, and spending your days doing whatever you please. This is the essence of the Vacation Phase, the period many retirees envision when they think about retirement. It’s a time of indulgence, relaxation, and often ticking off items on a long-held bucket list.

In this phase, retirees often:

  • Travel extensively
  • Pursue hobbies like golf, gardening, or boating
  • Revel in the freedom from rigid schedules

For most, this phase lasts between one and two years. While it’s a well-deserved respite after decades of hard work, it doesn’t last forever. As the novelty wears off, many retirees find themselves asking, Is this all there is to retirement? This marks the transition to the next phase.

Phase Two: Feeling Lost

The second phase, aptly called Feeling Lost, is when the initial excitement of retirement fades. This stage can come as a shock, particularly for those who assumed retirement would be an enduring carefree coast. According to Dr. Moynes, retirement is ranked among life’s top 10 traumas, often characterized by:

  • Loss of Structure: Without the daily grind, retirees may miss the routine that once anchored their lives.
  • Loss of Identity: Work often forms a large part of who we are, and stepping away can feel like losing a part of oneself.
  • Loss of Relationships: Colleagues who became friends may drift away once the common bond of work is gone.
  • Loss of Purpose: The sense of contributing to something meaningful can be difficult to replace.
  • Loss of Power: Retirees who once held significant roles may feel diminished when those responsibilities vanish.

Adding to these challenges are the “three D’s” that often coincide with this stage of life: decline (physical and mental), depression, and divorce. For some, this phase can feel overwhelming and endless, but it’s also a critical turning point. Recognizing these challenges and how they could affect you is an important step on your path to building a fulfilling and comprehensive retirement.

Phase Three: Trial and Error

If Phase Two is the lowest point, Trial and Error is the climb back up. This phase is about exploration—testing new ideas, hobbies, and ways to regain a sense of purpose. It’s not an easy process; retirees may try several activities that fail to stick before finding what truly resonates.

Key strategies for navigating this phase include:

  1. Rediscovering Purpose: Ask yourself, What makes me want to get up in the morning?
  2. Leveraging Past Successes: Reflect on personal victories and identify patterns that could guide your next steps.
  3. Staying Persistent: Trial and error is exactly that—trying and failing until you succeed.

For example, volunteering, mentoring, or taking up part-time work can help retirees reconnect with a sense of service and contribution. The key is not to give up; those who persist are far more likely to transition successfully to the final phase.

Phase Four: Reconnection and Service

The final phase, Reconnection and Service, is the reward for perseverance. Dr. Moynes describes this as the phase where retirees truly thrive, finding immense satisfaction in giving back and living with purpose.

Common ways retirees find fulfillment in this phase include:

The defining characteristic of this phase is a commitment to serving others. Whether it’s mentoring, helping a local charity, or being a present and engaged family member, this outward focus brings deep personal satisfaction.

Preparing for the Journey: Practical Tips

Retirement isn’t just about financial planning steps; it’s about planning for a fulfilling life after retirement. Here are some actionable retirement tips to ease the transition:

  1. Start Early: Don’t wait until retirement to think about these phases. Begin considering your unique abilities, passions, and potential challenges well in advance.
  2. Communicate with Your Partner: Retirement can test relationships, especially if one or both partners struggle with the changes. Open communication is essential for navigating this together.
  3. Stay Active: Physical and mental decline is natural but can be mitigated by staying active, both in body and mind.
  4. Seek Support: Whether through books like The Four Phases of Retirement or workshops, don’t hesitate to seek guidance in navigating these stages.

Squeezing the Juice Out of Retirement

Retirement is a journey, not a destination. It’s a series of phases containing their own challenges and rewards. By understanding these four phases, retirees can better prepare for the emotional and psychological hurdles that accompany financial planning. With persistence and a willingness to adapt, it’s possible to transition from feeling lost to living a purposeful and joyful life.

You may have some questions about this topic. Schedule your 15 minute complimentary call with us and learn more about The Four Phases of Retirement here.

March 27, 2023 Weekly Update

We do love it when someone refers a family member or friend to us.  Sometimes the question is, “How can we introduce them to you?”   Well, there are multiple ways but a very easy way is to simply forward them a link to this webpage.

Here are this week’s items:

Portfolio Update:  Murs and I have recorded our portfolio update for March 27, 2023

This Week’s Podcast – Implementing Your Retirement Plan

In this Episode of the Secure Your Retirement Podcast, Nick and Taylor return to talk about the retirement plan implementation after the initial process. When you decide to be our client, we ask for all the information needed to open your account with our custodian Charles Schwab.

 

This Week’s Blog – Implementing Your Retirement Plan

At this point, a lot of work has been done on both sides of the table: you provide a wealth of information, and we give you a recommendation and insight into your retirement. Now, you have to decide whether or not you want to work with us as a client.

If you love everything and want to work with us to secure your retirement, we will move forward through a new process…

Implementing Your Retirement Plan

Last month, we started a conversation on the retirement planning process, which you can read here or listen to on our podcast. In that episode, we discussed:

  • Preparing for an introduction meeting with our team
  • Obtaining documents for the meeting (financial statements, retirement statements, etc.)
  • What happens on our end before the second meeting
  • Bucket sheet (cash, safety and growth)

At this point, a lot of work has been done on both sides of the table: you provide a wealth of information, and we give you a recommendation and insight into your retirement. Now, you have to decide whether or not you want to work with us as a client.

If you love everything and want to work with us to secure your retirement, we will move forward through a new process.

Meeting and Figuring Out Any Additional Information We Need

We’ve gathered a lot of information from you up until this point, but there are still some documents we’ll need to open up accounts. For example, we’ll need:

  • Beneficiary information
  • Dates of birth
  • Addresses
  • Phone numbers
  • Contact information

We’ll spend time filling in documentation with all of your information to open up a Charles Schwab account in your name. Once all of this paperwork is signed, we’ll submit it to Schwab. In most cases, it will take 1 – 3 business days to open the account, depending on the type of account in question.

This is when:

  • Transfers take place
  • Nick reaches out to you about the account being opened
  • Verify that everyone can access the new account (including you)
  • Etc.

If you’re already a customer of Charles Schwab, we only need to provide a single form to access the account. 

Understanding Our Relationship with Charles Schwab

It’s crucial for you to understand that we don’t work for Charles Schwab. In fact, we’re not connected with the company in any way other than using them as a custodian. Custodians can be:

  • Fidelity
  • TD Ameritrade (not for much longer as Schwab acquired them)
  • Charles Schwab
  • Vanguard
  • Any place where you have your accounts

Charles Schwab doesn’t have a financial relationship with us.

When we transfer your accounts from your existing custodian to Schwab, something called an “in kind” occurs. This is a simple term, meaning that all of your assets are moved from one account to another and remain unchanged.

We don’t have to sell and repurchase anything when transferring your accounts to Schwab.

Until we come up with a strategy around the investments, nothing changes in your accounts during the transfer. The transfer doesn’t cause tax liability or anything like that.

What Happens If I Transfer My Monthly Distribution from One Custodian to Another?

If you have a custodian account with, say, Fidelity and you’re taking a $1,000 monthly distribution, what happens when you transfer to Schwab? We’ll need to fill out one additional form on your behalf and make sure the same exact thing happens at Schwab for you.

In essence, we’re just changing bank accounts when moving to Schwab, and we replicate everything for you effortlessly.

What Happens with a Company Plan, Such as a 401(k), 403(b), 457, etc.?

If you have what is called a “company plan,” the transfer happens a little differently. We require one less form to file and we’ll need to contact the company, such as the 401(k) company.

When we contact the company, we’ll request that the company send a check for the balance of your account. The check will be made out to Charles Schwab for the benefit of you. The check can be sent to you or to Charles Schwab directly.

The process varies and depends on how fast the company cuts the check.

Note: When we work together, we do a trustee-to-trustee turnover so that you don’t trigger a taxable event. 

Tax Planning Over the Next Few Months

During the first few months of working with us, we’ll dive into tax planning. If you want to secure your retirement, you must not pay a dime more in taxes than is necessary. First, we’ll need your most recent tax return.

We’ll analyze these returns to learn where you can save money.

For example, perhaps you can benefit from a Roth conversion, so we’ll have a conversation around this to see if it’s something you’re interested in doing.

Of course, we may be able to leverage:

  • Qualified charitable distributions
  • Donor-advised funds
  • Any opportunity to lower your taxable income

We want to lower your current taxable income and future taxes, too.

Clients Over the Age of 65

If you’re over the age of 65, you may be concerned about selling something with a gain or a Roth conversion. Clients who are paying Medicare premiums, or will be shortly, need to worry about something called IRMAA.

Don’t know what IRMAA is? Read our guide on it here.

Essentially, once your adjusted gross income reaches over a certain level, there’s a possibility that your Medicare premiums may start increasing. The goal is to keep your premiums at a level where whatever we do on our end, such as a Roth conversion, isn’t negated.

Our clients who work with us, we will:

  • Introduce you to a CPA we work with
  • Help you gather all of your tax forms
  • Ensure that your return is filed on time

Taxes have a lot of moving parts, and we do our best to ensure that we take as much of the burden off of you as we can.

Communication With Clients

On our end, there’s so much going on quickly that it can feel overwhelming and confusing. We communicate as much as we can with our clients so that you’re never left wondering: what’s going on with my accounts?

We provide updates, often via email or a phone call, to tell you about accounts opening, ensure that you have access to each account, transfer estimates and then when the transfer is complete.

We also keep in close contact with you during this time to ensure that if you have any questions, they’re all answered in a timely manner.

401(k) Transfers

If we’re transferring a 401(k), we often do not have an estimated date for this completion. However, we do see when the check is sent to Charles Schwab and when it is deposited into the account.

When the check goes to you, we’ll be in frequent contact with you to ensure everything goes smoothly.

At this point, we’ve done a lot of the process needed for our “45-day meeting.”

45-Day Meeting

In most cases, the 45-day mark is when we have everything in-house, and all of your assets have been properly transferred. We’ll be getting together to:

  • Ask you questions about logging into your account, statements and ensuring that you’re comfortable with the setup in place
  • Finalize anything that is left to talk about for the investment strategy
  • Deliver anything left in the investment strategy to you

We provide you with a one-page document on how everything is laid out for your multiple buckets. These buckets include your cash, safety, and growth accounts. During the visit, you’ll have time to ask us any questions about the way we devised these buckets.

Next, we’ll move on to the important part of estate planning, which will include a few things, such as:

We have a relationship with a partner firm, and we take care of this expense for our clients. The estate plan ensures that your retirement planning accounts for those times when you’re incapacitated or no longer living.

Since so much is going on during the first year of working with us, we will plan on meeting with you quite a bit so that we can get everything in place. You’ll also be able to see all of the work that we’ve done up until each meeting so that you can have peace of mind that your retirement is in good hands.

Do you want to learn more about our approach to retirement planning? Contact us today.