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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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Aug 25, 2017

Joel talks about the seven habits that the most successful retirees use to protect their wealth.

Main Questions Asked:

What are the seven habits of highly successful retirees?

Key Lessons Learned:

Estate Plan

  • You have to have an estate plan or all your assets could be tied up in court and subject to immense fees and taxes.
  • An estate plan makes sure that your assets are spent in a way to aligns with your values while minimizing taxes and protecting your assets.
  • Even if you have done this five years ago, you should probably review your plan.

Financial Plan

  • You need to have a thoughtful and comprehensive financial plan.
  • Your plan should be coordinated with inflation, social security, and all your other retirement income sources.
  • Your financial plan needs to be kept up to date and it should reflect the changes in your life.

Diversification

  • Successful retirees diversify their income streams instead of focusing on just having a large portfolio.
  • The younger you are the higher your life expectancy so you need to plan for a longer retirement and minimize your risks along the way.
  • You should adjust your income sources and amounts depending on your circumstances and that means reviewing your plan on a regular basis.

Risk

  • Your portfolio should match your tolerance for risk, and your risk tolerance is not going to always stay the same.
  • If you feel bad about your financial situation when it comes to the market, your portfolio probably doesn’t match your risk tolerance.
  • It’s important to stress test your portfolio frequently.

Tax Strategy

  • If you are tax efficient you can save thousands of dollars in retirement.
  • A good plan is customized to your exact situation.

Health Care

  • You need to have money set aside for health care so you don’t get wiped out by an unexpected health care emergency.
  • The average cost in an assisted living facility is $47,000 but it can also be much higher.
  • A gifting strategy that protects your assets and long term health insurance are components of a good plan.

Inflation

  • A small inflation percentage may not seem like much but over time can be very destructive.
  • “Inflation is as violent as a mugger, a frightening as an armed robber, and as deadly as a hitman.” Ronald Reagan
  • You need to have plan that protects your assets from inflation.

Links To Resources Mentioned

Money Map Retirement Review

1-800-757-0436

Thank you for listening!