#159 - Make your net worth work for your retirement not against it!
Hey, there, and welcome back to the Retirement Answer Man show. I’m Roger Whitney and I am THE Retirement Answer Man. This week’s show is all about Net Worth. Today I answer several listener questions regarding net worth statements. I also offer a caution about the dangers of comparisons in your retirement planning and how they can ruin your well-made plans. I’ll help you set your focus where it should be so that even though you can’t fully avoid comparisons, you can assure they will have minimal effect on you and your retirement. Make sure you take the time to catch this episode, your retirement will thank you!
Playing the comparison game could cost you your retirement.
We all do it. We compare ourselves to others. We compare our car, our job, even our net worth. While this is a natural part of human nature, it can be a very dangerous game to play. Comparing ourselves to others takes our focus off of our goals and what we need to do to accomplish them and puts the focus on our perceived value in relation to others. Comparing ourselves to someone with a higher net worth can make us feel discouraged, hopeless and possibly cause us to give up. On the other hand, if we compare ourselves to someone who’s net worth is lower than our own, we may feel so proud of our achievements that we stop working hard towards our goals. Even though comparisons are inevitable, there is a way you can focus on what is important. Listen to this episode to find out how.
I have a negative net worth, is there any hope for me?
Many people find themselves in this situation. It has become normal in our culture to live our lives without thinking of retirement only to find ourselves getting older with little savings and next to no assets. This is a scary situation to be in, and one that a listener finds himself in. He asks a question about planning for retirement and working with an advisor even though he has a negative net worth. He wants to know if there is a way to succeed. While the road to retirement is much more difficult when you are in this type of a situation, fear not, it is not hopeless. Listen to this episode to hear the advice I give this listener.
Will Kim and Joe be able to afford their ideal retirement? Find out tonight!
Tonight is the Retirement Plan Live webinar where I walk Kim and Joe through the conclusions of our planning and we find out together if they can afford their ideal retirement. You don’t want to miss the exciting end to this year’s Retirement Plan Live. But not everyone can join the webinar, you have to be invited. Listen to this episode to find out how you can get one of these special invitations. I hope to catch you tonight!
Taxes. Who likes Taxes? Is there anything I can do to lessen the impact of taxes on my investments?
Taxes aren’t fun, but we can’t escape them and we are forced to deal with them. A listener on today’s show is feeling the tax burden. He has done a good job of building assets but knows that he’ll be forced to draw taxable income during retirement which he fears might push him into a higher tax bracket. He wants to know if there is anything he can do to protect his IRA from heavy taxes. My answer, YES! There are some completely legal steps you can take to lessen the weight of taxes on your investments. You’ll hear my suggestions of how he can convert or draw from his IRA in order to make taxes easier to deal with during retirement.
OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN
[0:34] Comparisons are inevitable and dangerous.
HOT TOPIC SEGMENT
[3:29] Tonight is the Retirement Plan Live Webinar where Kim and Joe will find out if they can achieve their ideal retirement.
PRACTICAL PLANNING SEGMENT
[5:48] Would a financial advisor be of benefit to us even though we are in our 50’s and have a negative net worth?
[9:43] When creating a Net Worth Statement, how do I account for monthly pensions?
[12:15] We sold our house and owner financed it. How does this figure into our net worth?
13:59] Should I roll over an old 401K to an IRA?
[22:59] How can I minimize the tax liability on my current assets?
TODAY’S SMART SPRINT SEGMENT
[26:23] Concluding the creation of the I.C.E. plan.
THE HAPPY LAB SEGMENT
[28:32] Showing our loved ones that we care about them most.
RESOURCES MENTIONED IN THIS EPISODE
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
3-video Series: 5 Minute Retirement Makeover
Roger’s Retirement Learning Center
The Retirement Answer Man Facebook Page