Retirement Talk Podcast with Laura Stover Redefining Wealth

In this episode of Retirement Talk: The Redefining Wealth Show, Laura Stover, RFC® and Michael Wallin, CFP® delve into what clients value most in a financial advisor. They emphasize the importance of effective communication between clients and advisors and the need for a well-defined process that aligns discussions with clients' long-term goals. They also discuss the significance of a seasoned financial advisor with a broad spectrum of knowledge and a team approach to address various financial needs. 
The episode highlights the value of behavioral finance in helping clients make informed decisions, particularly in uncertain market conditions. Additionally, the hosts touch on the advantages of working with independent advisors who prioritize clients' interests and provide objective advice. 
We spend a few minutes revisiting last week’s topic, annuities, and why it’s important to have a team in place to help you navigate this complex area.
The episode underscores the importance of a comprehensive financial plan tailored to each client's unique situation. The hosts offer complimentary strategy sessions for those seeking personalized financial guidance.
 
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Today, Laura Stover, RFC® and Michael Wallin, CFP® discuss the importance of planning for retirement income and the role of annuities in retirement planning. They start by emphasizing the significance of having a solid plan in place, especially in the face of economic uncertainties like the pandemic, supply chain disruptions, inflation, and market corrections. They mention that over one-third of Americans over the age of 50 regret not having a lifetime income source, as revealed by a recent survey. 
We highlight the role of annuities in providing structured, guaranteed income during retirement. They stress the need to identify the right annuity product for one's specific situation, and how annuities are designed for income purposes rather than accumulation. It’s important to choose a reputable insurance company.
Laura and Michael discuss various types of annuities, including multi-year guaranteed annuities and fixed indexed annuities. They emphasize that annuities should be a part of a comprehensive retirement plan and not the sole solution. They also mention the potential benefits of using structured notes as part of a diversified investment strategy.
Purpose-based allocation should be the priority, where different financial tools are used to address specific financial goals in retirement. Always seek professional advice and consider their individual circumstances when making financial decisions.
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Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/
 

Laura Stover, RFC® and Michael Wallin, CFP® discuss the Baby Boomer Dilemma documentary and its implications for pre-retirees and retirees. The film talks about many topics we routinely cover on the show- the growing national debt crisis, the potential for higher tax rates in the future, and the need for proactive tax planning. The national debt has exceeded $32 trillion and is expected to rise further, potentially leading to higher tax rates in the future. Effective tax rates for Americans could reach 45% by 2030, according to predictions by experts.
We also cover the current state of the economy and the possibility of a recession in 2024. The market is currently experiencing a recovery, but there are concerns about a potential recession next year.
It is crucial to have  a well-diversified tax plan that includes a mix of deferred, tax-free, and taxable accounts to optimize retirement income  Roth conversions can be a valuable strategy to take advantage of current lower tax rates and create tax-free income in retirement.
It is important to stay informed, work with a team of professionals, and have a comprehensive retirement plan that addresses income, taxes, investments, and estate planning.
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redefiningwealth.info
lswealthmanagement.com
Schedule a Review: https://redefiningwealth.info/schedule/
Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/
 

Laura Stover, RFC® and Michael Wallin, CFP® discuss why 1966 was the worst year to retire and why it matters in 2023. They explore the market downturn in 1966 and its impact on retirees, as well as the similarities and differences between that time period and the current economic climate.
The market downturn in 1966 was a harbinger for difficult times ahead, with inflation and recessions following in the years to come. The current economic climate has similarities to 1966, with factors such as civil unrest, war, supply chain issues, and a contracting labor force. The lack of pensions for retirees today makes them more vulnerable to market volatility and the need for a solid income plan. Stress testing and having a diversified investment strategy can help retirees navigate uncertain times and increase their probability of success.
Rate, Review and Subscribe to the Podcast:
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How to Connect:
redefiningwealth.info
lswealthmanagement.com
Schedule a Review: https://redefiningwealth.info/schedule/
Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/
Rate, Review and Subscribe to the Podcast:
https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188
How to Connect:
redefiningwealth.info
lswealthmanagement.com
Schedule a Review: https://redefiningwealth.info/schedule/

Investors often underestimate the risk in their portfolio.  Today, Laura Stover and Michael Wallin break down 5 common portfolio mistakes, as outlined by Christine Benz in Morningstar.  They are portfolio sprawl, when your assets often overlap and have too high a correlation A redundant individual stock portfolio can be risky as well. For example, if you are overly weighted in tech stocks, what happens if there is a chip shortage?
Other risks include also-ran mutual funds, asset allocation not formed by the plan, and suboptimal asset allocation. It is crucially important to develop a plan that works for your individual situation, and stick to it.  This includes modifying your portfolio when necessary.
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How to Connect:
redefiningwealth.info
lswealthmanagement.com
Schedule a Review: https://redefiningwealth.info/schedule/
Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/
Rate, Review and Subscribe to the Podcast:
https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188
How to Connect:
redefiningwealth.info
lswealthmanagement.com
Schedule a Review: https://redefiningwealth.info/schedule/
 
Timestamps (show notes):
0:00:49 Discussion on common portfolio mistakes
0:02:05 Portfolio sprawl and the importance of diversification
0:03:41 Redundant individual stock portfolios and the risks involved
0:05:59 The drawbacks of relying too heavily on mutual funds
0:07:51 The benefits of diversification and asset allocation
0:12:31 The impact of suboptimal asset location on taxes
0:18:39 The importance of dividing assets into income and growth
0:19:16 The need for a comprehensive retirement plan
0:26:45 The importance of tax alpha in retirement portfolios
 

Retirement planning involves mitigating risk and understanding the various risks that retirees face. Laura Stover and Michael Wallin break down these risks today, including reduced earnings capacity, visible spending constraint, heightened investment risk, unknown longevity, spending shocks, compounding inflation, and declining cognitive abilities. It is important to have a comprehensive retirement plan that addresses these risks and provides a reliable income stream. Retirees must also be aware of the sequence of return risk, which can deplete wealth rapidly if negative returns occur early in retirement.
Compounding interest can be a great way to grow your nest egg, but triple compounding in reverse can have a significant impact on retirement income. Reliability of income is crucial in retirement, and a solid plan is necessary to ensure a comfortable retirement.
Rate, Review and Subscribe to the Podcast:
https://podcasts.apple.com/us/podcast/retirement-talk-podcast-with-laura-stover/id571347188
 
How to Connect:
redefiningwealth.info
lswealthmanagement.com
Schedule a Review: https://redefiningwealth.info/schedule/