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Show Episode Notes
Don’t Tell Me How to Retire!
Meet one feisty 75-year old woman who is redefining retirement. Her empowering message may change people’s lives and how they think about retirement. Retirement research expert, Warren Cormier explains the different phases of retirement. Working past 70 is now the ‘new normal’.
Show Episode Notes
Do I Need Long Term Care Insurance?:
Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services. None of us wants to think about not being able to dress or shower on our own. Even worse, the cost of getting help with those basic services could devastate not only your retirement plans, but impact your entire family. Terry, Richard and Pam cut through the noise to help you understand the pro’s and con’s.
Show Episode Notes
Special Guest Expert:
Cindy Hounsell, president of WISER (Women’s Institute for a Secure Retirement)
WISER website: https://www.wiserwomen.org
- Nextavenue.org site (for articles about retirement planning, saving and investing) Link
- WISER’s Your Future Paycheck Calculator Link
- Choosetosave.org site’s Ballpark E$timate Calculator Link
- Livingto100.com site (to estimate how long you will live) Link
- Terry Savage’s new book: The Savage Truth on Money Link
Show Episode Notes
Who’s Giving You Financial Advice:
- Most people start thinking about hiring a financial professional when they’re approaching retirement. But the lack of a uniform code of conduct among financial professionals allows many glorified salespeople to legally pose as trusted advisors. This episode explains how different kinds of financial advisors work and earn their living--and why these differences matter.
- Guest pre-retiree Patty starts with the story of a personal finance class she attended with her husband at her local college. The “instructor” was an insurance salesperson who used the class to try to sell them annuities as the solution to their retirement income challenges.
- Guest Lynne Egan, the Deputy Securities Commissioner for the state of Montana, attended a similar class and confirms that these “trolling sessions” are both common and legal. It’s the job of investors to understand the differences between a glorified investment salesperson and a fiduciary financial advisors who is committed to acting in your best interests.
- Guest Phyllis Borzi, former assistant secretary of the Department of Labor during the Obama administration, worked tirelessly to introduce legislation that would have required all advisors to act as fiduciaries. Her efforts were legally thwarted by industry opposition. As a result there are no uniform standards of care among financial advisors.
- Registered representatives, or brokers, earn commissions selling products, and only need to meet the “suitability standard,” which means that as long as a product they recommend generally aligns with an investor’s risk tolerance and investment objective, the broker can recommend the product that pays them the highest commission. Investors who want to work with an advisor who puts their needs first need to to ask many qualifying questions, starting with, “Are you a fiduciary?”
- Legally, investment advisers are required to service as fiduciaries, which they fulfill, in part, by being paid directly by clients and receiving no commissions for managing their investments. But may investment advisers are also brokers, and can still receive commissions for selling certain products, such as insurance. Investors who want to hire “100% fiduciaries” should limit their choices to independent fee-only investment advisers who are not also brokers. Investors should also require the advisor to sign an industry standard fiduciary oath.
- Wealthramp.com helps individuals locate fully vetted, fiduciary fee-only financial advisors
Resources and Research:
- The latest developments in legal attempts to require all advisors to serve as fiduciaries:Link
- View the most widely recognized fiduciary oath and find firms that are committed to abiding by its principles: Link
- Research the background of any financial advisors to find out if they’re a broker, investment adviser or both and if they’ve ever violated securities regulations. Link
About Friends Talk Money
Whatever life after 50 looks like to you, thinking about money in retirement shouldn’t keep you up at night. We’re all dealing with the big questions about money and aging: How much you can really spend, how to invest your life savings without risking it all in the stock market, and should you sell your home and downsize? Then there’s the biggest unknown: how much health care you’ll need, and whether your savings and insurance is enough to cover the costs. This is personal. These topics may not be easy to talk about with your own family. That’s why nationally known personal finance experts Terry Savage, Richard Eisenberg, and Pam Krueger and are here to open up the dialogue so you can learn how to define your retirement and deal with your money on your own terms.
These three friends think, write, and speak about these issues. And now they’re joining forces to give you the benefit of their experience, wisdom and advice in their new podcast, Friends Talk Money.
Each week Richard, Pam and Terry will discuss a different piece of the retirement pie. Everything from Social Security and Medicare to investing and cash flow management is on the table, with practical, common-sense advice on how to deal with these and other challenges.
But don’t expect cut-and-dried answers. These friends have strong opinions, and aren’t afraid to debate the pros and cons of their friends’ recommendations. But what you will walk away after each episode is a greater awareness of the retirement planning issues you’ll need to address with the help of your family, friends and financial advisor.
Friends Talk Money is proud to be sponsored by the North American Securities Administrators Association