financial planning

Time is Undefeated

The Bird’s Eye View:

Time is undefeated. Nobody outlasts time. One of the big questions that people have, when they seek our advice, is: Will we be OK financially and have money for the rest of our lives? We’ll let you know what steps you must do to get there. 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re talking about time, how it is undefeated and what you must do to make your money outlast you. 

People who do well financially in retirement were diligent savers, and they kept their debt in check. The sacrifice in their younger years allowed them to retire comfortably and do what they want. 

We see clients who made decisions to work in careers that they didn’t love but it provided financially. My dad is an example. He wanted to be a car designer, but he didn’t get to do that. He worked in the National Guard and in construction. It wasn’t his dream, but he never complained. He told me that his job was what he did for a living, but it wasn’t his identity. 

A sad thing is that some of our clients have died early in their retirement, and they didn’t get to do the things they dreamed of. 

You need to build your life resume. Do some epic things that are big things, big dreams, things that make you so uncomfortable but ultimately make you grow and make you a better person. 

When you put things off for later, later may not happen. You need to take action. Maybe you have a travel bucket list. You need a plan in place, and you have to be disciplined. 

A couple recently came to me and wanted to know if they can retire. I asked them to give me their numbers and figure out how much money they spend now and how much they’ll need in retirement. They are so paralyzed that they haven’t sent the numbers back yet. 

Do you know how you take back time? You schedule those things, you plan those things, you execute those things. Once you’ve done them, time can’t take those back. 

Jesse Itzler YouTube video: https://www.youtube.com/watch?v=jks1fjm3o_I

Listen to the full episode or use the timestamps below to find specific segments.

[1:33] Time is undefeated

[6:10] Options shrink as you age

[9:38] Can we retire?

[13:52] Build your plan

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Your Brain on News

The Bird’s Eye View:

In today’s world, the news is everywhere. How does this affect our brain and decision-making? Did you know that constantly obeying our ancient drive to focus on the negative can make us miserable? 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re talking about your brain on news and how this 24/7 news world can affect you negatively.

Humans evolved in an unsafe and uncomfortable world—focusing on potential dangers helped us avoid death. But the world is now safe and comfortable, and much of this old machinery backfires. Constantly obeying our ancient drive to focus on the negative can make us miserable.

If it seems like the news is negative, that’s because it is. Most estimates suggest that about 90 percent of news is negative. A recent study found that even brief exposure to this negative stuff has emotional consequences.

It happened like this: In the 1800s, newspapers at the time covered erudite and boring topics like business and politics. These papers were also expensive, at six cents a copy, which meant that only the rich could afford them.

To fill the financial gap, newspapers decided to sell ad space to businesses. They could use the space they’d purchased to inform readers about their products and services. But advertising only works if people see it.

Nearly 200 years later, the media still works the same way: Grab people’s attention and sell our attention to the highest bidder.

So is the world as bad as the media portrays it? Is it 90 percent bad? No, the world isn’t perfect, but the average person today, for example, is anywhere from 40% to 70% less likely to be hungry, illiterate, poor, or die at a young age than they were in 1990.

The media run 20 times more headlines about murders than they do heart disease, yet Americans are roughly 40 times more likely to die of heart problems than they are homicide. Taking what you hear in the news with a grain of salt may be beneficial to your health and happiness. 

Listen to the full episode or use the timestamps below to find specific segments.

[2:10] Ground news

[6:32] How we got here

[9:34] Here we are

[14:38] Headlines

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

Ground News Article: https://ground.news/

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

How Overconfidence Can Lead to Financial Destruction

The Bird’s Eye View:

Overconfidence in your financial life can sometimes lead to destruction. Find out if any of these examples apply to you and why you can’t put too much confidence in any of these planning areas.

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re sharing some ways overconfidence in your financial life can cause problems for you. 

Overconfidence in the stock market

When the market is doing well, sometimes we can become overconfident and think it will last forever. As always, the markets will correct. They take a deep breath, and they continue marching on.

Overconfidence in your ability to manage your portfolio

You want to invest in quality companies that you can feel confident about. The emotional side is the toughest part to manage.

If you looked at the fee we charge to help our clients, about 20% of that fee goes to the selection and management of assets. The other 80% is keeping our clients on track to achieve their goals.

You want to have a professional in your corner to keep you from making bad decisions. We can help you create a plan, even during tough times.

Overconfidence in a certain amount of money

Some people think, “Once I get to $1 million dollars, then I can retire.” The problem with that is $1 million is just a goal. Will it actually deliver the income you want to live the life you want?

You might find out that $1 million won’t give you all you want. On the other hand, you might realize you don’t need $1 million.

There are a couple of other items we’ll run through on the show so make sure you check out the full episode. If you are worried about your own overconfidence in any of these items, please reach out and we’ll be happy to look things over with you. 

Listen to the full episode or use the timestamps below to find specific segments.

[6:00] – Stock markets

[9:05] – Managing your own portfolio

[13:24] – A million dollars

[14:31] – Rules of thumb

[16:23] – Certain products

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

In case you want the chili recipe we talked about, check it out here: https://www.meatchurch.com/blogs/recipes/texas-chili

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Tony Robbins and the Importance of Feeding Your Mind

The Bird’s Eye View:

Today we’re sharing some wisdom from motivational speaker and coach Tony Robbins about the importance of feeding your mind. Find out five ways you can live your best post-pandemic life.

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re sharing some wisdom from Tony Robbins, a motivational speaker and coach who has had a major impact on our life. 

 

Tony released a video called “5 Keys to Living Your Best Post-Pandemic Life.” We shared it with our team and got so much positive feedback that we wanted to share it here with you. 

 

One of his best pieces of advice is to feed your mind for at least 30 minutes a day, but you must pursue that knowledge and not let outside distractions pursue you. Tony also recommends giving more than you expect. 

 

If you’re ever wondering why you’re alive and what you’re doing here, try feeding your mind. It will make an incredible difference. When you’re in a bad place, there are five things you can do to get to a better place.

 

Stand guard to the door of your mind

 

Who do you surround yourself with? What are you reading? We live in a world where the media wants your eyeballs. We live in a culture of fear. 

 

Start a new daily practice. Read 30 minutes a day. Great ideas have to be pursued. Success leaves clues. If you want things to get better, you have to get better. 

 

Progress equals happiness. You can achieve everything in the world and still wonder, “Is this all there is?” The only way you stay happy and excited is to keep making progress.

 

Take Care of Your Body 

 

You have to feed and strengthen your body. If you don’t take care of your body, it can really mess up your mind. Strong emotions can be physical. Doing something, even if it’s simply 5 or 10 minutes of activity, will immensely help. This is also about developing discipline, strengthening your mind and body connection. 

 

Role Models 

Look for role models. A lot of people come from humble beginnings and it’s important to them to find role models that inspire their lives. Role models can remind you there is always a way to reach your goals. 

 

Massive Action 

Maybe you are constantly asking yourself “Where Do I Start?” or “How Do I Start?” The important thing is that you actually do start. You want to get things in motion. It’s about momentum! 

 

Give More 

Do what is right. Do something for others. “It’s not about me, it’s about we.” Giving is not about brownie points, but about connecting with others and embracing the human spirit. 

Listen to the full episode or use the timestamps below to find specific segments.

[7:03] Feed your mind

[14:38] Why am I around?

[17:44] Guard your mind

[23:56] Take care of your body

[29:37] Role model

[31:26] Massive action

[31:53] Give more

Check out Tony Robbin’s video: https://www.youtube.com/watch?v=Aupn1QUSxdw&t=25s

Chili Recipe: https://www.meatchurch.com/blogs/recipes/texas-chili

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Retirement Wisdom From Mick Jagger

The Bird’s Eye View:

Believe it or not, Mick Jagger has dispensed a lot of retirement planning wisdom in his life. Granted, he didn’t mean for these statements to have anything to do with money when he said them, but we’re here to weave these quotes into a financial lesson.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re talking about Mick Jagger’s famous quotes and his unintentional retirement advice and wisdom.

“The past is a great place, and I don’t want to erase it or to regret it, but I don’t want to be its prisoner either.”

Some people spend way too much time worrying about financial things they did or didn’t do in the past instead of really focusing on assessing where they are now and what to do next.

More importantly, where do you want to go? Your future has to be bigger than your past, and you have to have something to look forward to. Dwelling on things that have happened in the past aren’t going to help you with a successful retirement.

“Lose your dreams and you might lose your mind.”

It’s hard to plan your retirement if you haven’t taken any time to dream about what you want life to look like. How much will you travel? Where will you live? What will an average day look like?

Spend some time dreaming alone and with your spouse, if you’re married, and then work to create a plan that makes that dream happen.

You really have to create a plan of action to fill your time and create value out of your existence. It’s extremely important to have that vision.

“It’s alright letting yourself go, as long as you can get yourself back.”

It’s OK to lose money in the stock market as long as you have time for those investments to rebound. But if you don’t have time on your side, you need to assess your risk very carefully.

Listen to the full episode or use the timestamps below to find specific segments.

[2:52] – The past

[4:28] – Losing dreams

[8:22] Letting yourself go

[10:27] – Satisfaction

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

How Age & Wisdom Play Into Financial Planning

The Bird’s Eye View:

There’s an old quote that says, “Age is the price of wisdom.” Today, we’re talking about how that applies to the financial world. Ask yourself, have you changed your opinion on money and saving for retirement as you’ve gotten older?

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re talking about age and wisdom and how it relates to your views on money.

How do clients change their perspectives about what money and wealth mean to them as they get older?

During the accumulation phase of our life, we are focused on money and paying off debt. As we get older, we realize that money is a tool and it’s really about experiencing the things that you want to experience or, more importantly, making sure the people that are closest to you get to experience things that are important.

After saving your entire life, it can be tough to be a spender and make that transition. It can become a security blanket. We can help people devise a plan to make sure they are comfortable with how they’re spending their retirement money. 

Is there anything that people say they wish they’d known earlier or wish they’d done differently when they were younger?

From the money perspective, many people wish they had started saving for retirement earlier. The other big thing is they wish they had been focused on the tax impact of their savings.

The big regret that’s not connected to money is, instead of building a giant bucket list of things to do after retirement, people wish they had done some of those things along the way.

As people approach retirement, do people worry about financial issues more or less than they did when they were younger?

It depends on how focused they’ve been on preparing for their future. Retirement can sneak up on you, and then you need to figure out how to pay for your lifestyle in retirement.

Listen to the full episode or use the timestamps below to find specific segments.

[3:30] – Changing perspectives

[6:15] – Regrets

[8:52] – Worry

[11:50] – Legacy

[15:11] – Risk

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

4 Financial Questions We Get Asked All the Time

The Bird’s Eye View:

There are four financial questions we get asked all the time. So today, we’re sharing what they are and how we answer them.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re sharing the four most common financial questions we get and how we answer them.

When can I retire?

In today’s world, that date is really up to you. You’ve got to be prepared. In decades past, you work, you punch the clock, you retire and you get a pension.

That changed in the 1970s when 401ks and IRAs became more popular than pensions. It shifted the responsibility to us and not our employer.

Do I have enough?

You need to figure out how much money you need to retire. What lifestyle do you want to live in retirement? That will determine if you have enough or not.

You also need to take into account how long you need your money to last. No one knows how long they’ll live, so that’s a big unknown, and that gives some people anxiety.

Good financial planning will help you run scenarios and figure out your goals.

Will my money last as long as I do?

If we live a long life, will our money last? Will we be taken care of? You want to have independence and not be a burden on loved ones.

Listen to the full episode or use the timestamps below to find specific segments.

[3:45] – When can I retire?

[5:55] – Do I have enough?

[7:41] – Will my money last as long as I do?

[8:34] – Will I be OK?

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Watch Out for These 4 Retirement Blind Spots

The Bird’s Eye View:

What blind spots are in your financial plan as you prepare for retirement? We’ll explain what they are and how to spot them.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re talking about blind spots in your retirement. Most retirees and pre-retirees have them in their retirement plan – things they never knew they needed to be thinking about.

We’ll explain how each of these blind spots can cause problems.

Market downturns

Market downtowns are part of the game. We have to be aware that they are going to happen. We need to understand what your comfort level is with the fluctuation of the value of your money. You need to know what your exposure is in your current plan and determine if you’re OK with that level of risk.

Inflation

This topic has been more prevalent in the news. It looks like the fed is not overreacting to inflation at this point, but we are seeing some things inflate in value, such as lumber and vehicles.

You’ll see supply chain issues on certain things, but we think this is a short-term issue.

Medical costs

If your plan doesn’t address this, it could be a blind spot that could pop up and surprise you. Can your plan support an extra $4,000-$8,000 a month for care for a loved one? How long can it sustain that?

Some people prefer to self-insure through cash flow or assets, but others want to use different strategies.

Listen to the full episode or use the timestamps below to find specific segments.

[4:15] – Market downturn

[6:43] – Inflation

[8:40] – Medical costs

[11:03] – Tax

[13:50] – Looking for blind spots

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

How Long Should You Save Important Documents?

The Bird’s Eye View:

Clients often ask us how long they need to keep important documents on file. Today, we’re sharing a checklist of what you need to save and why.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re sharing how long you need to keep documents on hand and why.

First, you should create different categories – such as tax documents, health care, legal, assets and debt and other documents – and make a process that works best for you.

Tax documents

You never mess with any government agency that has three letters. For the IRS, you need to keep at least three years of state and federal income tax returns and all your supporting documentation.

If you live in California, you need to keep them longer than three years. In other cases, there are some tax documents you may need to keep for six or seven years, which we detail in the podcast.

Health care

If you’re on Medicare, you’ll want to keep your summary notices for at least a year or until the bill is paid in full. If you’re in an employer drug plan, keep your annual notice of credible coverage. You’ll need that if you’re on Part D at a later time.

Legal

You definitely want a copy of your Social Security card, birth certificate and passport. If you have an estate plan, you want a digital copy in a PDF. You also want to save marriage certificates and military discharge papers.

Listen to the full episode or use the timestamps below to find specific segments.

[7:15] – Taxes

[8:54] – Health care

[9:54] – Legal

[11:13] – Assets and debts

[12:55] – Other documents

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

Download the free PDF: What Documents Should I Keep on File

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Long Term Care Solutions

The Bird’s Eye View:

Today, we’re talking nuts and bolts of financial planning and long-term care solutions. Not many people like to discuss this topic, but it’s important to be prepared.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re exploring long-term health care. What is it and what are your options?

There are three main categories of long-term care, but first let’s discuss what it is. It could be someone who is sick, goes to a rehab hospital and goes home. You may have people coming into your home part time or full time. Assisted living and nursing homes are also long-term care.

To quantify the costs, you have to look at the levels of care that are offered. It’s less expensive to have someone come into your home for a few hours, but it’s more expensive to live in a private nursing home with a private room. That can be six figures a year in some places.

We have software that can help calculate your costs based on what you might need.

It’s uncommon in society that people have the resources to self-fund long-term care. It’s more common with families that we serve, because they have been great savers. They have financial resources that can help them weather that storm.

People often go through these things with their parents, and they don’t want their children to shoulder the same burden.

Traditional long-term care insurance has decreased in popularity over the years, partly because premiums have increased. Most of our clients don’t have it, or if they do, they got it before they came to us.

Hybrid solutions are where things are headed. You use other types of insurance products, such as annuity or life insurance strategies. Another option is a life insurance retirement plan.

Listen to the full episode or use the timestamps below to find specific segments.

[3:55] – What is long-term care?

[8:20] – Self-insure?

[10:43] – Traditional insurance and hybrids

[16:13] – Life insurance retirement plan

[19:23] – Recap

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Knowledge is Not Power

The Bird’s Eye View:

Is knowledge power? Not always, and we’ll explain why on today’s show.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re exploring the topic of knowledge and what you do with it.

“Early in my career, I stumbled across this concept – knowledge is not power, the application of knowledge is power. Just because we learn something doesn’t mean we can apply it,” said Scott. “I was focused on obtaining information early on, because I thought I had to gather all this knowledge, so I could never be stumped by a question.”

Education and information are extremely important, but in today’s world, access to information is unlimited. Wisdom only comes from experience.

Here’s how that ties into the world of financial planning. There are many choices people have. You can read a book or enroll in a course, but applying all that information and keeping up to date with all the information, that’s usually why people delegate to a qualified financial advisor.

You have to combat information overload with a structured decision-making process and focus on facts and logic. Find out what information or data you need to make decisions on your financial future.

We don’t want experience to override critical thinking, but a financial advisor can help you distill all the information and figure out what’s important for your financial plan. That will help you feel comfortable and confident in your plan.

Listen to the full episode or use the timestamps below to find specific segments.

[2:05] – Knowledge is not power

[6:40] Knowing where to tap

[12:12] – Critical lessons

[14:05] – Executing a plan

[15:30] Prior knowledge not always an advantage

[20:26] – Feeling comfortable and confident

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

What Are You Going To Retire To?

The Bird’s Eye View:

What are you going to retire to? This topic has come up a lot lately, so we wanted to address it in today’s podcast.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re talking about a question that has come up a lot lately: What are you going to retire to?

Everyone can quickly name what they’re retiring from, such as early wake up times, driving to work, etc. – that’s the easy part. You know what you want to move away from, but where are you going?

People often ask us, can we financially retire? That’s part of what financial planning is, but people often don’t think about what they’re going to do with the approximate 2,500 hours they’re getting back each year by not going to work.

Some people are going to coast right into retirement and be just fine. Maybe they have hobbies or want to volunteer, work part time or travel. But sometimes people get surprised by is the lack of structure that a job provides.

Most clients are retiring on their terms. But with the pandemic, there have been some out-of-left-field or forced retirements. Some people have been retiring earlier. The largest exodus we’ve seen has been in the medical field.

There have been some silver linings from the pandemic, though. Some people got to experience trial retirements by not going to work or not interacting with coworkers as much.

Listen to the full episode or use the timestamps below to find specific segments.

[1:36] – What you are going to retire to?

[6:17] – Struggling with retirement

[10:06] – Silver linings

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

You’re Always Closer To Running Out Of Vitamin C Than You Think

The Bird’s Eye View:

This is not a health episode, but we can tell you what vitamin C and stoicism have in common and how it relates to your financial health.

 

Your Guide:

Did you know that the human body can’t store Vitamin C? We’re always closer to running out of Vitamin C because our bodies can’t store it. Humans also don’t store a reserve of being stoic.

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’ll explain the correlation between those facts and how it impacts your financial health. 

A constant theme on this podcast and in our discussions with clients is behavioral investment counseling. When you’re hiring a good financial planner, the vast majority of what you’re paying them for is to keep you from making emotional or irrational mistakes that will harm you in the short and long term. Human nature is that we revert and become emotional, but we must constantly fight this.

One of our long-time clients sent us a story by a Forbes contributor and wanted to know our thoughts. The story said stocks were on the brink of a grizzly bear market. It was ominous.

We told the client that we know from history that the markets randomly and unpredictably go down. There’s always something to worry about – the pandemic, elections, the climate, the market. We never make investment policy decisions form these types of articles and they don’t matter to our long-term plan.

We’re not going to be doom and gloom here. We’re going to talk about reality, but we also need to discover what are the windows of opportunity that are presented with this?

We need to guard our minds. We don’t watch any news channels or read any major publications. We use services that distill down and deliver pertinent data behind what’s going on.

Listen to the full episode or use the timestamps below to find specific segments.

[3:05] – Email from a client

[5:31] – Always something to worry about

[9:45] – No doom and gloom

[12:45] – Guard your minds

[14:28] – Emotions

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Secure Act 1.0 Clarification and Secure Act 2.0

The Bird’s Eye View:

SECURE Act 2.0, son of the SECURE Act, has come out and we’ll explain what has changed, what you might like and what you might not.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re diving into the SECURE Act 2.0, which has some major changes, including an admission of a mistake by the IRS.

Anytime we can say the IRS has made a mistake and it’s in your benefit, we get excited about that. We want to build off the last podcast and what the IRS said they said they were going to do with the SECURE Act and why they retracted that.

In the last episode, we talked about what happens when you inherit an IRA. When the SECURE Act came out, it basically said you’ve got up to 10 year to have it drained out. Almost every expert and advisor were operating under the fact that we have a clock ticking for 10 years.

Well, the IRS came out and said no, it’s not that easy. We’re going to make you do a stretch IRA or make you do required minimum distributions for the first nine years and then you have to empty it out by the 10th year. That’s an administrative nightmare, and the whole industry was up in arms.

Lo and behold, the IRS came out and said we made a mistake. We interpreted that incorrectly. There was so much backlash that they had to come out and retract that.

To everyone reading this, if you have an inherited IRA, the original thought process is correct – you have 10 years to drain it out with no mandatory amounts within that 10 years. The IRS is doing this because it wants the deferred taxation inside of it.

That’s great news and it simplifies things.

Listen to the full episode or use the timestamps below to find specific segments.

[2:06] – SECURE Act 2.0

[5:16] – Rothification of retirement

[7:05] – Please some, frustrate others

[10:22] – Collecting tax on the seed

[12:22] – Increase RMD age

[15:54] – Don’t get too wrapped up

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Critical Facts: SECURE Act’s RMD Rule Not What You Thought

The Bird’s Eye View:

We’ve got some news for you. There have been some recent developments in provisions of the SECURE Act. Find out what we think about the news and how it could impact planning.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re talking about some recent developments to the SECURE Act and what it might mean for you.

The SECURE Act started Jan. 1, 2020, and was a revision of some of the IRS rules of how to handle IRAs. There were some great provisions to help Americans save, but they also took away some of the strategies people use to minimize taxes.

In the new 2021 version, the IRS talks about post-death distributions to IRA beneficiaries. The big change is they eliminated the stretch IRA for most non-spouse beneficiaries.

Now you’ll have to start taking required minimum distributions after the death of the owner. Every year you have to calculate the value and figure out how much to take out to satisfy the required minimum distribution. By year 10 you have to empty it out.

This becomes an accounting and record keeping issue for a lot of people. If you fail to take out the right amount, there’s a penalty, and it’s a 50% penalty of the amount you’re required to take out. So, if you’re supposed to take out $10,000 and you don’t, you’ll be penalized $5,000.

So, how could this affect you? I would tell you to take a deep breath. The IRS has not introduced official regulations yet. This could all change depending on how the IRS receives the feedback. I would say hold tight. Don’t get worried or concerned.

Listen to the full episode or use the timestamps below to find specific segments.

[2:42] What is the SECURE Act?

[6:34] – Withdrawing funds from retirement accounts

[11:20] – Not the first big change

[13:36] – Repercussions

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Don’t Make These Assumptions About Retirement

The Bird’s Eye View:

There are some things you should never assume in the financial world, especially as you’re preparing for retirement. Find out if you’re getting any of these things wrong.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re talking about some of the wrong assumptions people make about their finances, especially as they’re preparing for retirement.

I’ll spend less in retirement

People often think they’ll spend less in retirement, but that’s not always the case, especially in the first five years after you leave the working world. Many people are traveling, playing golf, taking cruises, etc. and those things cost money.

“Will your plan support the lifestyle you want to live in retirement?” said Scott.

My taxes are going to be lower when I retire

If you retired in 2018 or beyond, that’s true, but it’s very rare and it’s the first time it’s happened in 30 years.

Tax rates are at historic lows. Considering the stimulus money and other entitlement programs, we’ll likely pay for that later with taxation.

I should help my children with college and worry about saving for retirement later on

You want to be there to help your kids. The problem is, to what degree do you help them? There’s no such thing as financial aid for retirement. Make sure you’re not sabotaging yourself in the process.

Listen to the full episode or use the timestamps below to find specific segments.

[7:41] – Spending less in retirement

[9:26] – Lower taxes in retirement

[11:12] – Helping children with college

[13:34] – I’ll never retire

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Beware of the Three P’s: Panic, Politics and Performance Chasing

The Bird’s Eye View:

Today we’re talking about classic mistakes people make that can have long-term impacts on their retirement plan. Find out how to avoid the three P’s – panic, politics and performance chasing.

 

Your Guide:

We all want to avoid mistakes in retirement, but there are some classic ones you should look out for. On this episode of Your Retirement Elevated podcast with Scott Dougan, we’ll explain why you should watch out for the three P’s – panic, politics and performance chasing.

During the pandemic, there were some classic, behavioral mistakes people made. Market drops can be painful slides, but it’s important to remember that the market is not your portfolio. All of our clients are invested differently.

No matter how cool, calm and collected you think you are, the pandemic has caused some people to panic. That’s always the wrong response, as the market showed. It seemed dire, but it rebounded in many areas.

The second P to watch out for is politics. We don’t talk politics on this show, but we can talk about policy. Many responded to political fears during the election by liquidating their portfolios, but that was the wrong decision.

“When you let politics muddy your investment decisions, bad things can happen,” said Scott.

Finally, beware of performance chasing. Some people got out or stayed out of the market during the pandemic, but that was the wrong move. Remain true to your plan, even during chaos.

Listen to the full episode or use the timestamps below to find specific segments.

[1:39] Emotional decisions

[4:05] – Market drops

[8:32] – Panic

[12:35] – Politics

[19:33] – Performance chasing

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Questions Not Usually Addressed in Financial Plans

The Bird’s Eye View:

We often hear about frequently asked questions, but what are some questions that are not usually addressed in financial plans? We’ll explain what they are and why you need to know the answers.

 

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’ll explain what questions are not usually addressed in financial plans and what you can do about it.

“We like to call it, ‘We need to isolate and find the money falling through the cracks,’” said Scott. “We do that by following a process and a system and set of questions for our prospective clients.”

Sometimes we don’t know what we don’t know, and there can be things going on in our financial lives that we’re not even aware of.

One area money could be falling through the cracks is on your tax return. It’s important that you do tax planning. Your financial advisor can be looking forward to figure out how you can save money.

Another area is your estate plan, which can have holes or be outdated. You need to surround yourself with a team to help you prepare these important documents, and that team needs to communicate.

We’ve come up with a list of questions that aren’t often asked. That will help us streamline your plan and make sure there aren’t any missing pieces. Some of those questions include:

  • Is your current investment risk an undiagnosed problem creating a ticking time bomb in your financial future?
  • Do you use proven strategies to mitigate investment risk?
  • Are you aware of all the tax, investment, or risk issues that are not addressed or solved by a will or living trust?

You need to make factual, logic-based decisions, not emotional decisions. To help you make more sound decisions, your financial advisor can track all the pieces of your financial life, including taxes, beneficiaries, estate plans and more.

Listen to the full episode or use the timestamps below to find specific segments.

[1:22] – Money falling through the cracks

[2:56] – Tax returns

[3:44] – Estate plans

[6:00] – Lack of communication

[10:36] – Making factual, logical decisions

[14:00] – Questions you need to ask

[14:36] – Tax-loss harvesting strategies

[20:24] – Financial advisors can be your quarterback

[23:50] – Virtual educational events

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

 

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Estate Planning 101: Stealth Taxes

The Bird’s Eye View:

In part three of our estate planning series, we’re talking with attorneys Chris Gaughan and Casey Connealy about stealth taxes. They are sneaky taxes that we often don’t think about or know about but can really add up.

 

Your Guide:

Welcome to part three in our series on estate planning. On this episode of Your Retirement Elevated podcast with Scott Dougan, we’ll explain four types of stealth taxes and what you need to know about them.

Our guests today are Chris Gaughan and Casey Connealy, with Gaughan & Connealy Estate Planning Attorneys.

“Stealth taxes are mandates and rules that increase revenues without raising the ire of taxpayers,” said Casey. “These are ways that the government or administrative bodies can say ‘Hey, we are going to charge a fee for this.’”

Death taxes

“One of the biggest concerns that clients express to us is they don’t want to pay any taxes unnecessarily when they die,” said Chris. “There is this assumption out there that you’re going to pay some kind of death tax.”

Death tax isn’t as bad as it looks, but it can be if you’re not careful. The way death tax works is there’s a certain amount of money you’re allowed to leave your family before you have to pay a tax. It’s called the estate tax exemption. Right now, that threshold is really high. It’s $11.7 million.

Individual retirement accounts

We’re talking about IRAs, 401ks, 403bs or any traditional retirement accounts that are pre-tax. They end up having to be taxed either to you, or your kids if you don’t spend all the money, at ordinary income rates. This is typically a much higher tax rate than paying regular capital gains.

During this episode, Chris and Casey also talk about stealth taxes on probate and other administrative fees. Listen to the full episode or use the timestamps below to find specific segments.

[2:19] – What are stealth taxes?

[4:00] – Death taxes

[7:57] – Individual retirement accounts

[11:34] – Probate

[14:09] – Delays and administrative fees

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Check out Part 1 of our Estate Planning 101 Series 

Check out Part 2 of our Estate Planning 101 Series

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact

Estate Planning 101: Wills and Trusts

The Bird’s Eye View:

In part two of our estate planning series, we’re talking with attorneys Chris Gaughan and Casey Connealy about the difference between wills and trusts. Which one should you have, and what are the pros and cons?

 

Your Guide:

Welcome to part two in our series on estate planning. On this episode of Your Retirement Elevated podcast with Scott Dougan, we’ll explain the difference between wills and trusts.

Our guests today are Chris Gaughan and Casey Connealy, with Gaughan & Connealy Estate Planning Attorneys.

“As estate planners, the number one question that we get without a doubt is what is the difference between a will and a trust,” said Casey. “They don’t know the difference, and they don’t know which one of those they might need.”

What if you don’t have a will or trust?

Studies show as many as 70% of people don’t have a will or a trust when they die.

“If you don’t have an estate plan at the time you pass away, state law is basically going to govern where your stuff goes,” said Chris.

This is where probate comes in. It’s a process of retitling assets when you die. There are a couple of drawbacks to probate, but the biggest one is the cost. Probate fees can be around 3% to 5% of the gross value of whatever goes through probate.

So if you have a house worth $250,000, and there’s a mortgage for $200,000, that 3% to 5% probate fee applies to the total value of the house, not the mortgage. To get that house through probate, you’re looking at anywhere from $7,500 to $12,500.

In addition to the cost, probate is very time consuming. It can take anywhere from 12 to 18 months.

During this episode, Chris and Casey also share:

  • What a will is and why you need one
  • How you can protect your children
  • Reasons to use a trust

Listen to the full episode or use the timestamps below to find specific segments.

[2:40] – What if you don’t have a will or trust?

[5:34] – What is a will?

[7:43] – What is a trust?

[9:40] – Other reasons to use a trust

[12:15] – Divorce protection

[13:16] – Protecting children

[14:12] – Money management concerns

[14:59] – Children with special needs

[15:56] – Should I have a will or trust?

[19:33] – What do I do next?

[21:16] – Contact Chris and Casey

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.

 

Check out Part 1 of our Estate Planning 101 Series. 

 

Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact