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Listen to Johnson Brunetti's Money Wisdom with Joel Johnson CFP®, host of Better Money Television program and Forbes Contributor. Gain true financial wisdom and advice aimed at educating you about all of your financial options when it comes to retirement so you can make the best decisions for you and your family. Get information and education that can bring you peace of mind with your savings and retirement. Whether it’s your 401k account, IRA, or an underperforming asset, Joel Johnson can answer your questions and make you more aware of issues that may affect you.

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Jan 31, 2020

Have you ever wondered why your advisor spends so much time on all the scenarios you never expect to happen? It’s to avoid a catastrophe in retirement that ruins everything you’ve worked for or even causes you to return to work. Let’s discuss four scenarios that we’ve seen first-hand and talk about how you can avoid the same outcome.  


Show notes and additional resources: 


Today's rundown: 

0:43 – A recent study finds outstanding student loans have tripled since 2006. There’s now $1.6 trillion in student loans out there. When will this become a major problem?

1:58 – Here’s how Joel’s kids have dealt with paying for college.

3:13 – Anytime there’s easy money to borrow, bubbles happen. And that’s what we have in this student loan situation. This is a real problem.

4:12 – Let’s talk about some retirement catastrophes.

4:39 – 1st scenario: Tell us a story about somebody later on in retirement that struggled to pay the bills because they didn’t do a good job accounting for inflation through the years.

6:00 – 2nd scenario: What about somebody where bad tax planning really bit them?

7:44 – Another example of this where a person bit on one of these schemes that caused a big tax burden down the road.

9:19 – A lot of people don’t see taxes as part of the retirement planning process. 

10:20 – 3RD scenario: Someone retires without having a realistic idea of how much they would spend in retirement.

12:27 – Think about retirement as 35 years of unemployment. This needs to be a part of your thinking when building a plan.

14:06 – 4th scenario: Have you seen someone that got wiped out by a market crash? Maybe they took on too much risk in retirement.

16:48 – Mailbag Question #1: I’ve been loving the growth in my 401k for several years but I just don’t know how long this ride is going to last. When should I walk away from this roulette wheel?

18:31 – Mailbag Question #2: I’ve spent 40 years saving and investing and now that I’m about to retire, I can’t comprehend the notion of taking money out now. Why does it terrify me so much?