Retirement planning is not just about financial stability and security. It is also about ensuring that individuals are healthy and able to enjoy their retirement years. The convergence of health with retirement planning is crucial to address longevity risk, income distribution, protection, estate planning, and everything that goes into an optimal retirement.
In the Functional Retirement Podcast, hosted by Thatcher Taylor, experts in the fields of retirement planning and health are brought together to explore the connection between the two. One of the guests on the podcast is Michael H. Baker, a certified financial planner with several designations related to retirement planning. In one of the episodes, Baker shares his personal experience of prioritizing his health to improve his overall well-being.
Baker's story highlights the importance of taking care of one's health, especially as individuals approach retirement. Retirement is a time when individuals have more time to focus on their health and wellness. However, it is also a time when health issues can arise, and individuals may have to deal with chronic conditions or age-related illnesses. Therefore, it is crucial to prioritize health and wellness to ensure a fulfilling retirement.
Baker's journey towards better health began with a health scare that led him to seek medical attention. After several tests, he was advised to start doing cardiovascular exercise seven days a week for at least 30 minutes a day. He also changed his diet and gradually started losing weight. Baker's story shows that it is never too late to start taking care of one's health. With the right mindset and support, individuals can make positive changes to their lifestyle and improve their overall well-being.
Prioritizing health in retirement planning is not just about exercising and eating well. It also includes regular check-ups, managing chronic conditions, and seeking medical attention when needed. It is essential to have a healthcare plan in place that covers medical expenses and provides access to quality care. Long-term care insurance is also an important consideration as individuals age and may require assistance with daily living activities.
In conclusion, prioritizing health for optimal retirement is crucial to ensure a fulfilling and enjoyable retirement. It is never too late to start taking care of one's health, and with the right mindset and support, individuals can make positive changes to their lifestyle. Retirement planning should include a healthcare plan that covers medical expenses and provides access to quality care. By prioritizing health and wellness, individuals can enjoy their retirement years to the fullest.
The podcast references "Slow and Steady Wins Retirement" and highlights the importance of taking a long-term approach to both physical fitness and financial planning. Mke Baker, a black belt in jujitsu, shares how he found himself struggling with health issues and anxiety as he approached middle age. He realized that his lifestyle choices, including a lack of exercise and poor diet, were contributing to his health problems. Through a commitment to consistent exercise and healthy eating, he was able to improve his physical health and overall well-being.
The speaker draws parallels between his experience in jujitsu and financial planning. Just as it takes time and consistent effort to become a black belt, it also takes time and consistent effort to build wealth and prepare for retirement. There is no quick fix or shortcut to financial security. It requires discipline, patience, and a long-term perspective.
When working with clients who are approaching or in retirement, the speaker emphasizes the importance of having a clear vision of what they want their retirement to look like. This includes not only financial goals but also lifestyle goals. What activities do they want to do? Where do they want to live? What kind of healthcare do they need? By having a clear vision, individuals can create a plan that aligns with their values and priorities.
One of the key takeaways from the podcast is the importance of prioritizing health and wellness in retirement planning. This includes not only physical health but also mental and emotional health. Retirement can be a challenging transition for many people, and having a support system in place can make a big difference. This may include family, friends, or professional advisors who can provide guidance and support.
In conclusion, prioritizing health for optimal retirement is crucial to ensure a fulfilling and enjoyable retirement. It is never too late to start taking care of one's health, and with the right mindset and support, individuals can make positive changes to their lifestyle. Retirement planning should include a healthcare plan that covers medical expenses and provides access to quality care. By prioritizing health and wellness, individuals can enjoy their retirement years to the fullest. Slow and steady wins retirement, and by taking a long-term approach to both physical fitness and financial planning, individuals can create a retirement that aligns with their values and priorities.
The podcast discusses the importance of writing down a retirement plan. The speaker emphasizes the need to understand each client's unique situation and goals, and to communicate effectively to help them achieve those goals. The first step is to understand what retirement looks like to each client, what they see themselves doing, and what they value. This helps to build a framework for the retirement plan.
The speaker notes that many people's primary concern is whether they will run out of money in retirement. To address this concern, the speaker helps clients understand their desired lifestyle in retirement and how to afford it. This involves planning and creating a written plan that outlines their retirement goals and how to achieve them.
The speaker notes that many people avoid writing down their retirement plans because it makes it real. However, having a written plan provides a blueprint for retirement and a sense of accountability. It allows individuals to revisit and adjust their plans as needed.
In conclusion, writing down a retirement plan is essential to achieving retirement goals. It helps individuals understand their desired lifestyle, create a blueprint for retirement, and hold themselves accountable. By taking a long-term approach to both physical fitness and financial planning, individuals can create a retirement that aligns with their values and priorities.
However, before collaborating with a spouse or partner, it is important to engage in individual work. This means taking the time to reflect on personal goals and desires for retirement without the influence of another person. By doing so, individuals can gain a deeper understanding of their own values and priorities, which can then be used to inform collaborative discussions with their spouse or partner.
During this individual work, it is important to ask oneself questions about what an ideal retirement looks like, what an average day in retirement looks like, what activities one wants to do in retirement, what activities one does not want to do, what one is most looking forward to, and what one is afraid of. By answering these questions, individuals can create a clear picture of what they want their retirement to look like and what they need to do to achieve it.
Separating spouses during this individual work is also important. This allows each person to reflect on their own desires without the influence of their partner. It also creates an opportunity for a collaborative approach between both spouses, as they can then come together and share their individual plans, finding common ground and areas where they may need to compromise.
The benefits of individual work before collaboration extend beyond retirement planning. By taking the time to reflect on personal goals and desires, individuals can gain a better understanding of themselves and their priorities. This self-awareness can then be applied to other areas of life, such as career planning, personal relationships, and overall well-being.
In conclusion, individual work before collaboration is an essential step in retirement planning. By taking the time to reflect on personal goals and desires, individuals can create a clear picture of what they want their retirement to look like and what they need to do to achieve it. This self-awareness can also be applied to other areas of life, making it a valuable practice for overall well-being.
However, involving an advisor in the financial planning process can add significant value. As discussed in a recent podcast, advisors can provide an unbiased third-party perspective that can help couples navigate any past scars or built-up emotions that may hinder communication. Additionally, advisors can help ensure that both spouses feel honored and excited about the plan, as a plan that is not their own is unlikely to be followed.
One particular area where advisors can be especially helpful is in assessing an individual's current financial situation and aligning it with their retirement goals. Rather than simply looking at assets and income, advisors can help individuals determine the lifestyle they envision for themselves in retirement and price it out accordingly. This can involve creating a spending plan or budget that allows individuals to practice living on their retirement income before actually retiring. By doing so, individuals can ensure that their retirement goals are realistic and achievable.
Ultimately, involving an advisor in the financial planning process can help individuals achieve a more comprehensive and effective retirement plan. Advisors can provide valuable insight, guidance, and support that can help individuals navigate the complexities of retirement planning and ensure that they are on track to achieve their goals. While self-reflection and individual work are important steps in the process, collaboration with an advisor can take retirement planning to the next level and help individuals achieve the retirement they truly desire.
One important step in retirement planning is test living on a retirement budget. This involves taking a hard look at one's current expenses and trying to live on a reduced budget that aligns with retirement income. This can be a challenging exercise, but it is an important one because it helps individuals understand what their retirement lifestyle might look like and whether they will be able to meet their financial needs.
In a recent podcast, a financial advisor recommended that clients start test living on their retirement budget as a first step in the planning process. The advisor suggested that clients try to live on the amount of money they will have in retirement for a few months and then report back to see how it went. This can help individuals get a sense of what their retirement lifestyle might look like and whether they will need to make any adjustments to their spending habits.
The advisor also emphasized the importance of looking at tax returns to get a clear picture of income and expenses. By understanding how much money is coming in and going out, advisors can help clients develop a more accurate retirement budget. This can involve projecting social security income, pension income, and other income sources to determine whether there is a gap that needs to be filled.
Ultimately, test living on a retirement budget can be a valuable exercise for anyone who is planning for retirement. It can help individuals understand what their retirement lifestyle might look like and whether they will be able to meet their financial needs. By working with a financial advisor, individuals can develop a more comprehensive and effective retirement plan that takes into account their unique needs and goals. With the right planning and preparation, individuals can achieve the retirement they truly desire.
One key philosophy that financial advisor and planner, Jamie Hopkins, advocates for is to retire on cashflow, not assets. This means that individuals should focus on creating a steady stream of income that can support their retirement lifestyle, rather than relying solely on their accumulated assets to sustain them.
Hopkins emphasizes that while it is important to accumulate wealth for retirement, it is impossible to predict what one's assets will look like 25 years from now. Instead, he suggests that clients should retire on cashflow, which can be achieved through various strategies such as bond ladders and asset liability matching.
One benefit of retiring on cashflow is that it provides a more predictable and stable source of income. By creating a plan that focuses on generating income, individuals can better ensure that they will have the financial resources they need to support their retirement lifestyle.
Another advantage of this approach is that it allows individuals to test out their retirement budget before actually retiring. By living on a retirement budget for a period of time, individuals can better understand what their retirement lifestyle might look like and whether they will be able to meet their financial needs.
Of course, retiring on cashflow requires careful planning and preparation. It is important to work with a financial advisor who can help develop a comprehensive and effective retirement plan that takes into account an individual's unique needs and goals. By doing so, individuals can achieve the retirement they truly desire.
In conclusion, retiring on cashflow, not assets, is a philosophy that emphasizes the importance of creating a steady stream of income to support one's retirement lifestyle. By focusing on generating income, individuals can better ensure that they will have the financial resources they need to enjoy their retirement years. With careful planning and preparation, individuals can achieve the retirement they desire and deserve.
The podcast emphasizes the importance of being agnostic when it comes to retirement planning. The guest speaker shares his personal experience of witnessing different retirement plans and strategies working for different individuals. He mentions seeing plans that include guardrails and annuity strategies, both of which have been successful for his clients. However, he emphasizes the importance of being educated on all retirement plans and strategies, even if they don't apply to all clients. This is because clients deserve an objective technician who can provide them with information on what might work best for them.
The guest speaker also stresses the importance of disclosure biases. Advisors should disclose their biases and explain why they don't like certain strategies. Clients want to know the truth and appreciate an honest approach. The guest speaker also mentions that there are many different income distribution strategies available, and advisors need to be careful not to impose their beliefs or biases on their clients. An agnostic approach is the most valuable, as it allows clients to choose the retirement plan that works best for them.
The podcast also discusses the importance of retirement planning being client-centric. Advisors need to understand their clients' needs and preferences and help them achieve the retirement they desire and deserve. Retirement planning is not about the advisor's beliefs or biases, but rather about the client's goals and objectives. Advisors need to be honest with their clients and tell them if they are not a good fit for their needs. By doing so, they can refer them to someone who can better serve them.
In conclusion, being agnostic when it comes to retirement planning is essential for client success. Advisors need to be educated on all retirement plans and strategies and disclose their biases. They need to be client-centric and help their clients achieve the retirement they desire and deserve. By doing so, they can do much good in the world and help individuals retire with financial security and peace of mind.
The podcast episode titled "Money touches everything, including health" highlights the importance of considering health and longevity when planning for retirement. The guest speaker, a financial advisor, emphasizes the need for advisors to have an agnostic approach to retirement planning, considering all options and strategies without bias.
The speaker notes that retirement planning should not solely focus on financial aspects but also on health and wellness. As people age, their health becomes a critical factor that affects their retirement years. The speaker encourages advisors to discuss clients' plans for health and wellness and help them form habits that promote good health. These habits include exercise, healthy eating, and social interaction, among others.
The speaker notes that advisors have not traditionally discussed health and wellness with clients, perhaps because they have not been compensated for it. However, good health has a significant impact on retirement planning and affects decisions such as Social Security, medication costs, and long-term care. By discussing health and wellness, advisors can help clients achieve their desired retirement and improve their quality of life.
In conclusion, the podcast episode highlights the importance of considering health and wellness when planning for retirement. Financial advisors need to have an agnostic approach to retirement planning and consider all options and strategies without bias. By discussing health and wellness with clients, advisors can help them form habits that promote good health and improve their quality of life in retirement. Ultimately, advisors can do much good in the world by helping individuals retire with financial security and peace of mind.
One of the key takeaways from this podcast is the importance of hiring an advisor for retirement success. The podcast emphasizes that advisors can provide valuable insights and guidance to help individuals navigate the complexities of retirement planning.
The first tip that the podcast offers is to hire an advisor. While this may seem like an obvious suggestion, the podcast emphasizes the importance of finding an advisor who is knowledgeable, experienced, and trustworthy. A good advisor can help individuals develop a comprehensive retirement plan that takes into account their financial goals, risk tolerance, and personal circumstances.
Another key point that the podcast highlights is the importance of considering health and wellness when planning for retirement. The podcast notes that health care costs can be a significant expense in retirement, and that advisors should be aware of this when developing retirement plans for their clients. By discussing health and wellness with clients, advisors can help them form habits that promote good health and improve their quality of life in retirement.
The podcast also emphasizes the importance of having an agnostic approach to retirement planning. This means that advisors should consider all options and strategies without bias, and should be willing to explore new ideas and approaches to retirement planning. By taking an open-minded approach, advisors can help their clients achieve their retirement goals in the most effective and efficient way possible.
Overall, the podcast makes a compelling case for why individuals should consider hiring an advisor for retirement planning. By working with an advisor, individuals can gain valuable insights and guidance that can help them achieve financial security and peace of mind in retirement. Additionally, advisors can help individuals develop healthy habits and strategies that promote good health and improve their quality of life in retirement.
However, the podcast also emphasizes that while financial security is important, it should not come at the expense of one's health. The host stresses that individuals should prioritize their health and make it a priority in their lives. This sentiment is echoed throughout the podcast, with the host emphasizing the importance of making time for exercise, eating healthy, and getting enough rest.
The podcast also highlights the fact that individuals cannot buy more time. We all have a limited amount of time on this earth, and it is essential that we make the most of it. This means focusing on the big things in life and not sweating the small stuff. It also means making time for the things that matter most, such as spending time with loved ones and pursuing our passions.
Another key takeaway from the podcast is that good investor behavior is more important than chasing the latest investment trends. The host notes that many people spend too much time obsessing over short-term gains and losses, when the key to long-term financial success is having a solid investment philosophy and sticking to it.
Finally, the podcast emphasizes the importance of reading and continually educating oneself. By reading books and staying up-to-date on the latest research and trends, individuals can expand their knowledge and improve their decision-making skills. This can be particularly helpful when it comes to retirement planning, where there are many complex issues to consider.
Overall, the podcast provides valuable insights into the importance of prioritizing health over wealth. While financial security is important, it should not come at the expense of one's health or quality of life. By making healthy habits and strategies a priority, individuals can improve their overall well-being and enjoy a more fulfilling retirement.
Throughout the podcast, Michael emphasizes the importance of making health a priority. He notes that while eating healthy and purchasing high-quality foods may be expensive, the cost of being sick or dealing with illness is far greater. This sentiment is echoed throughout the conversation, as the hosts and Michael discuss the long-term costs of neglecting one's health, including the financial burden of healthcare in retirement.
One of the key takeaways from the podcast is the idea that health and financial security are not mutually exclusive. In fact, prioritizing one's health can actually lead to greater financial stability in the long run. By investing in healthy habits and preventative care, individuals can reduce their risk of costly medical issues down the line. Additionally, taking care of one's health can enable individuals to remain active and employable well into their retirement years.
Another important point raised in the podcast is the interconnectedness of different aspects of our lives. Michael notes that prioritizing health can have a positive impact on relationships with family and friends, as well as on overall productivity and job performance. By taking care of ourselves, we are better able to contribute to our communities and achieve our goals.
Overall, the podcast provides a compelling argument for why health should be a top priority for individuals. While financial security is important, it should not come at the expense of our well-being. By investing in healthy habits and strategies, we can improve our quality of life and enjoy a more fulfilling retirement. As Michael notes, "let's pay the farmers...let's keep them in business because they will keep us healthy and active and vital."