Podcast

Ep 51: Case Study: Retiring Before Age 60 & Before You Ever Thought You Would

Hear Kevin share a story of a client who retired in her late 50s. She was in a state of disbelief after her retirement plan showed she could retire in her 50s. The sheer thought of retiring was new and a bit scary.

Be sure to pay attention to the end to hear how things are going for her now four years retired and how she has defined phases and varied strategies to her retirement distribution planning. Continue reading

Ep 50: What To Do When Your Spending Goals Change After You Retire

You cut the paycheck cord and enter retirement. Then a spending goal unexpectedly increases…significantly. You can’t simply continue to work longer, so what do you do?

Hear Kevin discuss real-life cases where clients had to provide financial support to their daughter going through a messy divorce and another situation where a client desired to buy a 2nd home. Though the situations were starkly different, the process to rework the retirement plan and evaluate tradeoffs was similar. Continue reading

Ep 49: Potential Inheritance: Include In Your Retirement Plan Or Not?

You live below your means and invest for your future … similar to your parents. Now your parents are getting older, and it seems fairly clear they’ll be leaving you an inheritance at some point. Meanwhile you’re still working. Should you include the potential inheritance in your retirement plan?

Banking on an expected inheritance for your retirement plan involves risk. Hear Kevin discuss real-life cases where it was appropriate and another where it was too risky. Continue reading

Ep 48: Why Big Tech Stocks Must Underperform

The five biggest tech stocks — Amazon, Apple, Facebook, Google, and Microsoft — are great businesses. They’ve been so successful over the last decade that they comprise about 20% of the total S&P 500 market capitalization — a level of concentration not seen since the late 1990s. They also command higher prices (valuation) than the market as a whole.

Listen to Kevin describe a simple thought experiment illustrating why it’s mathematically impossible for past to be prologue for these tech darlings. Eventually, the music will run out. Investors will again learn the lesson that price matters … just as they learned the same at the end of the Tech Bubble. Continue reading

Ep 47: Risks & Uncertainties in Pandemics & Retirement Planning

Interesting parallels can be seen in modeling retirement projections and the Coronavirus pandemic. Small changes to inputs — such as the rate of return or infection spread rates — can have magnified effects on outputs — such as ending wealth or total infections (and ultimately deaths), given similar exponential growth traits. Continue reading