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7 Biggest Retirement Planning Mistakes People Regret

we all look forward to retirement it's the time to sit back relax and enjoy the fruits of our labor unfortunately whatever aspirations we may have for our golden years can quickly turn into a nightmare if we make certain mistakes when planning for this phase of life these mistakes are surprisingly common and tend to lead to financial stress and regret with a big impact on quality of life some of these mistakes are 1. not planning for retirement two retiring too soon three relying too heavily on Social Security 4. underestimating health care costs 5. failing to save enough for retirement six taking on too much debt seven not maintaining strong relationships if you want to learn more about these mistakes and how to avoid them subscribe to the channel a new video is coming soon and you won't want to miss it.

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Retirement Social Security: Should I Withdraw Social Security at 62 or 67 with $1 Million?

so you're getting close to retirement and the question is when should you take Social Security should you take it at 62 should you take it at 67. it's kind of like the old Chicken and the Egg discussion which came first well in this video I'm going to show you some circumstances where it might make sense for you to take it at 62 but I'm also going to show you why it might make sense to wait until 67.

[Music] hi I'm Troy sharp CEO of Oak Harvest Financial Group certified financial planner professional host of the retirement income show and also a certified tax specialist when it comes to Social Security there's usually two types of people we come across the first one says Troy when I retire no matter what I'm taking social security and the other truly has questions when does it make sense should I defer Social Security longer because I've heard that that makes a lot of sense well the truth of the matter is your circumstances your individual circumstances dictate when you should take Social Security and those circumstances today may very well be different when you get to be Social Security age so I want to cover some of those situations that may change your timing for when you elect Social Security and I also want you to know how that impacts you long term as far as your financial security how much money you have how much income you have before we continue if you'd like to support the channel just hit that subscribe button share this video with a friend or family member or comment down below so let's take a look at John and Jane they're both 61 they come in they say Troy you know what we're tired of working we really are thinking about retiring and we know we can take Social Security next year at 62.

Does that make sense should we do that so this is a case study but John and Jane right now both making about seventy five thousand dollars per year so the first thing we're going to do is look at can John and Jane retire at age 62. now we have to pick a mortality date here so we start in this example at age 90. now one spouse could pass away before another spouse so we can always move these sliders back and forth and that would impact the probabilities and the right choice for taking social security but for now we're going to plug these in both spouses live into age 90 can they retire at age 62. we have to look at some goals here too because the the decision of when to take Social Security should not be made in a vacuum just because you get more from Social Security if you defer it longer does not mean that you should always simply defer Social Security longer there are some big things we need to understand first when do you want to retire how long are you going to live how many assets have you accumulated how much money do you have how much do you want to spend in retirement because that is a big determinant of how long your money will last and also when you should take Social Security so we have to first and foremost realize that the decision of when we elect Social Security each spouse has to be made within the context of the other parameters within retirement now for John and Jane here they want to spend a baseline income of about fifty thousand dollars per year but they're healthy and they're active they're retiring young the target date here is 62.

They want to spend an additional 60 000 in what we call the Go-Go years so a total of a hundred and ten thousand dollars for the first 10 years of retirement so from 62 to 72. after that 10th year they want to reduce the spending but they're still planning on being a little bit active going out to eat spending time with friends probably kids kids grandkids Etc they're going to reduce the total spending to from from the go go of 60 to 25 so 50 plus 25 is 75 000 all adjusted for inflation for another eight years here I'm just kind of randomly putting some numbers in of what we usually see when we sit with clients when we go through the income planning discussion and what retirement success looks like to you and this is something common to what we may see in this situation so 110 000 for the first 10 years of retirement then 75 000 for years 12 through 20 and then all of that goes away except the Baseline spending of about fifty thousand dollars a year and of course that's adjusted upwards for inflation 20 years from now that's going to be close to about a hundred thousand in today's dollars as far as purchasing power of that 50.

Now I like to start the analysis at age 67 so full retirement age so when we start to look at these parameters of when it makes sense that the Baseline I like to start at is 67. so in this scenario John has thirty six thousand dollars or three thousand a month at full retirement age of 67 if he waits that long Jane will have thirty thousand dollars in retirement benefits at full retirement age we call it fra for short if she waits until age 67. okay I told you there were four big things there we've already covered two of them how long they expect to live age 90 how much they want to spend we went through that go go spending plan now how much have they saved because these are the things that we have to look at in context of making the decision of what makes the most sense regarding the age to start social security for both spouses so in this example we have 250 000 inside James 4 1K John has about 700 000 inside his 401k and they've managed to save about fifty thousand dollars outside of retirement accounts for a total investable asset level of 1 million bucks now I'd like to point this out as well they have a five hundred thousand dollar home no mortgage so that's kind of always in our back pocket if we need to tap that home equity line possibly a reverse mortgage or if we want to sell and downsize generate a little additional cash for the Investment Portfolio or to spend it's always nice to know that we have that option okay so remember I said I like to start the Social Security analysis when deciding between taking it a 62 or 67 or anytime in between or even later I like to start the Baseline at 67 to kind of see where we are and how everything plays out so I'm going to hit the magic button and based on the Go-Go spending period retiring at 61 taking social security at 67 having one million dollars in assets by the way not assuming that the home is sold we just know that's in our back pocket but it's not used to fund any goals a couple things I want to point out here first 81 probability of success that means out of a thousand different simulations assuming all these different market returns across all these years and I want to also point out this is not using uh back tested data this is using assumptions and forecast moving forward for the current economic environment that's very important to understand so 81 is not a hundred percent but is it good enough to retire yeah absolutely as long as we stayed connected to what was going on in our plan as far as how our portfolio is doing how much income we're spending the economic environment all of these various factors we would just want to monitor it a bit more closely to make sure that we weren't going down from 81 but the second thing I want to point out here is look at the kind of the trajectory so these are a thousand different simulations here and the thing that sticks out to me is taking social security at 67 and spending that amount of money we see in in literally all of these simulations that the the portfolio balance this is what this represents so we're starting at a million on the y-axis here you see it's 2 million three million and then on the x-axis it's going out years 2025 2030 2035 but in almost all of these simulations the account balances are depreciating so that tells me immediately that I want to have a conversation with you that that if we defer Social Security until 67 would you be comfortable seeing your account balances spend down because from my experience When people's account balances are spending down in retirement even though they know they have a much higher guaranteed income from Social Security people get nervous and when you get nervous in retirement especially during a recession you can make bad decisions and bad decisions are typically the one thing that can really throw your retirement off track if we allow our emotions to dictate our actions we can blow an entire plan up in the best plan out there will get blown up from bad decisions typically driven from emotional feelings behaviors Etc okay now we're going to take a look at Social Security at 62 versus age 67 and we're also we're going to look at age 70.

So what we have up here is is full retirement age both taking it 62 both taking it at 70 and then one spouse at 70 one spouse at 67. we're going to look at the probability nothing's changed except when we take Social Security okay so the the what we just looked at the current 82 percent the reason this is one percent higher than the 81 is another simulation has run but we're right in that range I want to point this out here so this is interesting the age 62 of both spouses take it at 62. it's very very close to the full retirement age probability so when we're doing a statistical analysis of all these different variables to me there's not a ton of difference between 79 and 82 81 somewhere in that range these are very very similar now when we look over here at age 70 this is the one I want you to kind of really let soak in and understand why so we have a couple that wants to retire early but they also have a pretty big spending goal in mind because they want to enjoy retirement they want to spend it together they want to travel spend time with the kids that 110 I think was the goal 110 000 during that first 10 years of retirement in the Go-Go years this means we do have to draw down the assets we need to be comfortable with that but we also need a plan on where that income is coming from how we're going to protect some of the assets but also we want to make sure that these other decisions are being made correctly as well so 62 and 67 very similar but if if they were to just follow the the most recent article they read on CNBC that says you should defer your Social Security as long as possible and they waited until age 70 yes they would have significantly higher annual income but they will have spent down the portfolio to such an extent that that might be all they have so big difference here between taking it at 70 versus 62 or 67.

Now your situation is completely different I'm not telling you to not take it at 70 because for a whole lot of our clients that is the right thing to do mathematically the other side of that coin is mathematically is not always the right answer working with clients for many years I know that emotionally if we put a plan together and this is a conversation we'd have with you if we put a plan together that had you deferring Social Security longer but your account balances were declining in value not because the market was going down just because you were spending from my experience that would be very difficult for a lot of people to continue to spend the amount of money that they have been spending and still feel comfortable that they're going to be okay for the long run so this is why staying connected to the plan and having ongoing conversations and making sure you're attending your reviews and and and make sure that you understand where you're at I also want to to briefly just talk about the dynamic spending concept things change in retirement things change in the markets things change in the economy so when we're having these types of discussions if we're not comfortable you have to communicate that because we can pivot we can go in a different direction for some of you it may make sense to take it at age 62.

for some of you it may make sense to take it at age 67 and others age 70. but make sure you understand that this plan of yours it is a living breathing organism it needs water it needs sunlight it needs to be paid attention to and things are going to change pay attention to your your emotions how you're really feeling about your account balances is that impacting your spending decisions are you having trouble sleeping at night if so that's a conversation that that you need to have with your advisor but all of these different pieces working together from my experience that's how you have a higher probability of success in retirement and also sleep better at night [Music] foreign [Music].

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7 Biggest Retirement Planning Mistakes People Regret

we all look forward to retirement it's the time to sit back relax and enjoy the fruits of our labor unfortunately whatever aspirations we may have for our golden years can quickly turn into a nightmare if we make certain mistakes when planning for this phase of life these mistakes are surprisingly common and tend to lead to financial stress and regret with a big impact on quality of life some of these mistakes are 1. not planning for retirement two retiring too soon three relying too heavily on Social Security 4. underestimating health care costs 5. failing to save enough for retirement six taking on too much debt seven not maintaining strong relationships if you want to learn more about these mistakes and how to avoid them subscribe to the channel a new video is coming soon and you won't want to miss it.

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How to Live a Big Life in Retirement with Fritz Gilbert

Casey Weade: Welcome, Facebook Live. This is your 
host, Casey Weade, of the Retire with Purpose   podcast. And today, we have a very exciting 
guest. We have Fritz Gilbert here with us today.   And if you are thinking about retirement 
at all, then you've probably met Fritz,   you've probably come across some of his articles, 
especially in our weekend reading for retirees,   that collection of four articles we send out 
every single Friday with commentary from myself.   He's got one of the best blogs on retirement, 
if not, arguably the best blog on retirement   out there in the world today.

He's won award after 
award for his work on theretirementmanifesto.com. We've got a real live retiree here with us who's 
living a big life in retirement. We're going to   talk about his RV escapades. We're going to be 
discussing marriage and what that's looked like in   retirement, contrasting that to his working life. 
We also are going to be discussing Fritz's book,   Keys to a Successful Retirement. So, 
if you are thinking about retirement,   maybe have some friends that 
are thinking about retirement,   they can benefit from this type of content, 
please share this, start a watch party,   throw their name right down in the comments 
section, so that they catch this content. And if you have any questions, this 
is a unique opportunity for you. So,   only for the people that follow our 
Facebook page, if you liked our page,   you get to come into these visits and you get 
to present your questions to our world class   experts. So, if you have any questions about 
retirement, about the experience of retirement,   maybe even just RVing or marriage and retirement, 
this is an opportunity to get those answered,   so just write your questions right in the comments 
section, I will have those questions fed to me.   And even if we don't get to your question here 
right now with Fritz, Fritz will answer those   questions on the back end and make sure you get 
what you need.

And with that, I'm going to go   ahead and count us down and we will start the 
podcast in 3, 2, 1. Fritz, welcome to the podcast. Fritz Gilbert: Casey, thanks. I'm honored 
to be on your awesome show and I really   appreciate you having me on. Thank you very much. Casey Weade: Well, I'm excited to have you here. 
I was first introduced to you separately a couple   months ago or so. And it was because of an article 
that you wrote that I just fell in love with. It   was about the retirement motto and something ended 
up in seven letters.

We actually ended up doing   a little mini podcast on that very article. I did 
a little write-up about it myself. I just really   enjoyed that whole thought. You've got a lot of 
really good philosophical content that you put out   there, not just on the blog, but in MarketWatch 
and other places. And I've enjoyed that. I think   you bring a very unbiased nature to the content 
that you put out there. And it's not very often   that we get to meet a real live retiree that's 
living it and still studying it on a daily basis. Fritz Gilbert: Yeah, I think that's what I hear 
from a lot of my readers, Casey, is there aren't   a lot of old guys like me that are bloggers. 
I mean, you got a lot of the young fire guys,   that's great, and women, I mean, there's a lot of 
fire bloggers, and that's good. But I think for   the baby boomer audience, there aren't a lot of 
bloggers. And I hear that all the time that, hey,   you're one of the few that are actually living it. 
I didn't retire at 35.

I retired at 55. I still   got a little bit early, that's great. But I've 
just always had a passion for personal finance. And I just discovered a couple years before 
I retired, I just kind of took a flyer,   started the blog, and I found out that I love 
writing. And it's really added a lot of value to   my personal retirement to enjoy the challenge of 
writing. And then, the interaction with readers,   the podcast, the interviews that we're 
doing now, these types of things,   it's created this whole element of my 
retirement that I never saw it coming   and I love all aspects of it. So, I 
appreciate your kind words about my work. Casey Weade: Yeah. So, you retired in 2018? Fritz Gilbert: I did. Casey Weade: And how long have you been 
doing the blog? How many posts you have now? Fritz Gilbert: 250-ish. I started three years 
before I retired and I've been writing every week.   So, it's been a little over five years. So, do the 
math. I'm probably closer to 280, I guess.

I don't   even keep track to be honest. But yeah, I started 
three years before I retired. And the first   year was really looking at the financials, how 
do you determine when you're ready to retire? And then, it wasn't just my journey. It 
was really, here's what I'm doing, but more   importantly, here are the things you need to think 
about as you're preparing for your retirement,   make sure you don't have any blind spots, think 
about not just the financial stuff, but also   what are you going to do in retirement, what's 
going to be your purpose, which is obviously   a hotspot for you, the lifestyle questions. I 
went through all that myself. And what's nice   about documenting it now is on my blog, I've 
got every article I've ever written and I've   timed it so that anybody that's six months away 
from retirement can go right to my timeline and   see where I was when I was six months away from 
retirement and what I was thinking about. So,   it's kind of neat that I've captured it.

And so, 
yeah, I've been writing five years every week. Casey Weade: That's so neat that someone at a 
certain period of time from retirement could go   back to maybe right where you are, right where 
you were and learn what you were going through   experiencing at that time. What would you say is 
your biggest learning moment as you've done all   this work, all this research, all this writing? 
And then, maybe it's hard to pinpoint that one big   thing, but what would be one of the big takeaways 
for you and all your writing and setting? Fritz Gilbert: Yeah, I mean, the one thing 
that popped in my mind right away and I   really do believe it's probably the most 
important thing and I write about it quite   a bit in my book as you know is… okay, let 
me start with a holistic comment and then,   I'll funnel down to what the point is.


lot of people struggle with retirement and   your chance of depression goes up by 40% 
during retirement, probably much more in   the COVID environment because people are 
locked down, mental health issues, etc. And when I was about a year or two from 
retirement, I was really intrigued, what causes   some people to struggle with retirement, whereas 
other people seem to have a great retirement?   What's the research say? And what I found 
was, they found the highest correlation   to those people that have had 
a great retirement has been   how much time have you put into preparing for 
retirement before you got there. And obviously,   I was borderline obsessive. I was writing about 
it for three years. So, I was thinking about… Casey Weade: Arguably still so.

Fritz Gilbert: What’s that? Casey Weade: Arguably still 
so. A little obsessed maybe. Fritz Gilbert: Oh, maybe a little bit, but it's a 
healthy obsession. But what I've found was those   people that spend the most amount of time thinking 
about retirement. What they want their life to be,   not just the financial stuff? What do you 
want to do with your time after you retire?   What interests you? What do you want to pursue? Those types of things and the amount of time 
that you spend thinking about them, to me, is the   biggest thing I've learned because having been 
through it myself and spending that much time,   my transition to retirement, Casey, was 
absolutely flawless, it was smooth, it was   absolutely enjoyable. And I'm two and a half 
years in now and I still absolutely love every   day of retirement. I've not gone through any 
boredom, I've not gone through any depression,   I've not gone through any loss of identity. 
A lot of those things that people hit,   I've not experienced a single one of them.

And I do attribute a lot of that, some of 
it's just probably my natural optimism,   whatever your personality, but I think 
the biggest factor that people can control   is the fact that I spent a lot of time 
thinking about it, and anybody can spend   time thinking about it. It's just, realize 
that your job is coming to an end and start   ramping down the amount of mental energy 
you put into your work, still do your job.

I was doing 110% right until the end, but when 
you're not working or when you're commuting,   instead of thinking about that conference call 
that you messed up with, with a boss or whatever,   put it out of your mind, it's going to be gone in 
a year or two years. Put that discretionary time.   Don't commit that to work anymore. Find 
a way to put more and more of that energy   into thinking about what you want your 
life to be post retirement. That's the   biggest takeaway that I would say, I've learned. Casey Weade: Well, I see that 
with the families we work with.   You've got those couples that will 
come in and say here's everything,   just tell me what to do. And then, you've got the 
others that want to sit down, they want to know,   they want to understand where they're at, 
they want to understand where they're going,   and they want to have deeper conversations. They 
don't want to just talk about the finance stuff.   They want to get into those really meaningful 
conversations about purpose and retirement.

And those people that are willing to not 
just, they come in and meet with an advisor   and in two hours, they've got a plan 
and they're on their way to retirement,   I find they're not nearly as happy, not nearly as 
satisfied as those individuals that are willing to   put in the time to be there for four or five 
meetings and really get a little bloody-eyed   honestly with us. Let's really get into this 
stuff and get educated and know what we're   doing. And then, if you put that time out on the 
front end, I find those individuals aren't coming   back and continually asking questions 
and continually bringing up concerns,   it's the ones that didn't put in that time 
to really understand that have that issue. Now, you said that you started with 
the financial stuff. In your bio,   it says one of the leading bloggers on the 
subject of retirement with a focus on both   the harder and softer issues that are critical 
to success after crossing the starting line   and say harder would be financial, softer would 
be lifestyle.

You started with the harder stuff,   but then, don't think you quickly transition 
to the softer stuff? Is there one that's more   important than the other? Should we start with 
the harder stuff or the softer stuff first? Fritz Gilbert: I think it's natural to start with 
the harder stuff. When you talk about purpose and   that kind of thing to somebody that's, let's say, 
three or maybe five years or more from retirement,   life changes. You don't necessarily know 
what you're going to be interested in.   And the only thing that really matters 
when you're thinking about retirement   and you're more than three years out, it really 
is the financials. Are you saving enough?   Are you on a path? If you run some calculators, 
if you talk to an advisor, do you kind of have an   idea of when you're thinking about retiring? And 
are you saving aggressively enough to get there? I would say the financials are necessary 
but not sufficient.

You have to have them,   but if you stop with just the numbers, you're 
missing out on making it the best possible   retirement you can make. But clearly, you've got 
to have the financial. So, if you are going to   have only one of the two, clearly, you've got to 
have the financials. I just wrote an article last   week, The 6 Most Common Mistakes that people make 
for retirement and 43% of retirees have regrets.   And the vast majority of those are around 
how much income they've got in retirement. They were overly optimistic on how much social 
security they were going to get. They were   overly optimistic on their returns, whatever. 
They didn't get the financials and they're now   having regrets in retirement. So, 
you've got to have the financials.   And for the first, up until maybe you're 
two years away from retirement, I'd say,   maybe even a year, year and a half, I 
would say make the focus the financials.   But if you're within 12 months of retirement and 
you haven't started thinking about the softer   stuff, as I call it, man, red light.

Think 
about it because it really, really matters. Casey Weade: It's a good timeline and 
I see it as, let's grab a calculator   at first. The first step is, should I even be 
thinking about retirement? Is this even worthy   of my time and effort right now to try to think 
about that purpose and meaning and vision for the   future? Let's just grab a calculator, maybe sit 
down with a financial advisor, grab a retirement   calculator, figure out if it's even possible from 
a high level. If it's possible from a high level,   now we know, yes, it could happen, should it 
happen.

That's when we are looking at those softer   things. And as we get closer, if we go, yes, 
I could retire and yes, I want to retire. Now,   we need to put together a specific plan of 
action. Now, we get into the nitty gritty details. Fritz Gilbert: Yeah. And I would argue that you 
can do high-level numbers, obviously, you can   estimate your living expenses and everybody needs 
to do that. We tracked every dime we spent. We   typically haven't been budgeters. I 
saved 20%, 25% of my earnings. Sorry,   I got a cough today. Hope, I don't have 
corona. But we saved 20%, 25% and we just   spent the rest. We knew we were saving enough. 
So, we never really tracked our spending. And we went through a full year when I was about 
two years out, we tracked every spending we spent   and we built a very grounded forecast of kind 
of, okay, this is what our current spending is,   how do we see that changing in 
retirement? And then calculating,   do we have enough to retire based on that? 
Well, obviously, you can't do that exercise   without thinking about what do you want 
to spend your money on in retirement? The RVing is an example.

We were already thinking 
about, we want to travel, we want to do RVing,   we want to do things like that, so let's factor 
that in. When we adjust our current spending   to our post work spending, let's factor 
in some spending for RV travel. So,   you kind of have to think about your 
retirement lifestyle and what that's   going to cost as you go through the financial 
exercise.

It makes it a lot more accurate. Casey Weade: It's amazing to me how many 
individuals that we'll sit down with for   the first time. They're just going to retire 
this year and they've never put together a   budget. They have no idea how much they’re 
spending. And it's just really concerning for me   if that's the case. And I wonder what that 
experience was like for you when you first   decided to start putting together that 
budget, whether tools that you use, I mean,   maybe you didn't do a budget for a decade 
or more, now you have to go back and do a   budget. Was it a spreadsheet? How did you 
track the spending? Did you have a method? Fritz Gilbert: Yeah, I basically just took 
a spreadsheet, I've kind of always been a   spreadsheet guy, I've always tracked my net 
worth and things like that on a spreadsheet.   And Casey, I mean, I would literally just stick 
receipts in my pocket or if I used a credit card   or something, I would just send myself a 
quick email or text on my phone, whatever.   And then, when I got to my computer, I'd open up 
the spreadsheet and I'd put in whatever we'd spent   money on since the last time I sat down with a 
spreadsheet.

So, a couple times a week, I'd sit   down, I'd say okay, gas, $32 or whatever. And I 
kind of broke it into major spending categories. So, transportation, housing, 
insurance obviously a big one.   And I did kind of capture it by budget. Actually, 
I have a spending spreadsheet on my websites free   to print anybody that wants to go out there. 
So, I've got the spreadsheets that I used.   And I don't think you have to overcomplicate it, 
the key is, like you said, I never tracked it,   you can't estimate how much you're spending, 
because you're going to miss some things.

And what I found interesting, as I went through 
it for the year, you don't realize how much money   you're spending on some things and it gave me an 
opportunity to challenge some of our spending,   insurance comes to the mind, I shopped our 
car insurance, I hadn't done that for years   and saved quite a bit of money. So, one of the   extra benefits of doing it is you can kind of see 
those areas that you might want to think about,   Hey, is there an opportunity to potentially 
reduce some spending in some areas as well? Casey Weade: If you can't 
accurately predict future spending,   did you build in some kind of buffer? Fritz Gilbert: Yeah, basically, like, let's talk 
about insurance, that's the big one, obviously,   for people.

I retired at 55 and my employer 
used to have retiree health insurance, they've   discontinued it. So, what do you use for health 
insurance estimate? And you can't just guess,   I mean, it's a huge unknown. So, what I would do 
in a case like that is I would do some research,   I would kind of find the typical non 
subsidized because I do have a pension,   so I wouldn't qualify for the ACA 
subsidies or anything like that. So, what is the full-burdened cost of private 
health insurance? And I found ranges, but   say 2500 is kind of on the 
high end of the range, okay,   I'm going to use the high end of the 
range, I'm going to assume 2500 a month.   And we did that for basically everything. We 
kind of estimated a little bit on the high side,   the logic being, I'd rather have surprises 
to the good than surprises to the bad. So, our entire retirement budget, now you could 
argue, well, maybe I had to work longer than I   really would have needed to. Yeah, to me, what 
would it be? A couple months, six months maybe,   I mean, even a year, I ended up working a year 
longer than the numbers that I had to and I'm very   glad I did, we could talk about that.

But I think 
having some buffer is really important because   once you get into retirement, having that peace of 
mind that you were conservative in your planning.   And now, we're not paying 2500 a month for health 
insurance, so it's like, Okay, good. We're falling   below those projections. And our withdrawal 
rate is slightly lower than we projected   and everything's good. So, there's a 
lot less stress and a lot more enjoyment   when you get into retirement if you're more 
conservative on the planning side, in our case. Casey Weade: Now, I guess, question one, 
are you continuing to track your spending?   And are you spending more today than you 
did when you retired back in June of ‘18? Fritz Gilbert: Yeah, good question.

I actually 
got a question from Facebook about the bucket   strategy. So, I think I can probably talk about 
these in the same case. Here's how I did the   spending tracking, I don't want to sit here 
and track spending in a spreadsheet, that was   insane. I did it for 11 months, I 
didn't actually make it a full-year   full disclosure. We made it 11 months, 
but I'm not going to spend my retirement   plugging every dime that I spend 
into a spreadsheet, that's crazy. So, what I did and I just kind of came up with 
this, I've got articles about it, if you search   for the bucket strategy on my blog, basically, 
I created a retirement paycheck and I move money   every month from a Capital One 360 money market 
account into our checking account.

And every   month, I've got, so I know in January, how much 
was in that money market fund, I transfer money   every month, I can track my pension coming in 
easily enough. At the end of the year, all I   have to do is look at the beginning balance minus 
the ending balance and I can see how much we spent   out of our Capital One 360, add my pension to 
it, boom, I know how much we spent in the year. Now, I can't track it down to the 
category level, but I don't need to,   as long as I know that we're within 
our safe withdrawal rate and we're   not overspending.

That's the biggest concern 
is you've got to have some kind of mechanism   to make sure you're not overspending your safe 
withdrawal rate. And if you are, you recognize   it and you make adjustments. So, I set up the 
simplest process that I could think of, that would   kind of provide those guardrails without taking 
any work. I mean, it literally takes me 30 minutes   a year to do that. It's really, really simple. And 
it works. So, that's how I track my spending now. Casey Weade: And are you spending more? When we 
make more and more money while we're working,   we have lifestyle creep, we tend to 
spend more on retirement. You find   that maybe your portfolio is doing better 
than you had projected or you have a little   bit more income than you had projected. Do 
you see some creep as well in retirement? Fritz Gilbert: Yeah, interesting question, 
Casey. I think, if you look at the research,   the vast majority of retirees understand what 
they could be spending.

And I wrote an article   called, It's Time to Live Like No One Else, 
the Dave Ramsey quote. Live like no one else,   so later you can live like no one else. Well, 
now, it's later. What does live like no one else   after retirement look like? So, 
I wrote an article about it. And basically, what I said in that article is I'm 
going to spend what we can spend. I'm not going   to underspend because so many retirees fall into 
that natural, especially if you've always been   lifelong diligent, you underspend your paycheck, 
you do a good job saving, your natural tendency   is to be a bit frugal. And when you know you can 
spend X, your natural tendency is to spend less   than X, but you don't need to. If you look at all 
these Trinity studies, etc., you can spend your X. So, what I developed was this monthly 
transfer from the Capital One which   came out of bucket one cash, I can 
spend that entire monthly transfer.   It's all calculated, I don't have to 
worry about it.

Market may go up and down,   but I've got three years of cash. I can write out 
the storm. So basically, what we're doing is we're   spending up to that amount. And we got into 
a situation, I wrote my book, obviously,   I assumed no income in retirement. Again, 
conservative assumptions across the board. And I'm making some income in retirement. I wrote 
my book, I make a little bit of money on the blog,   not a lot, but it helps. So, what we're doing 
when we found that we were underspending,   we're like, “Well, we've got a little bit here. 
What should we do?” And we're contributing,   we're very into charity, we're supporting 
our church, we're tithing, things like that.   So, we decided, “Well, you know 
what? Let's look at the numbers.”   And we decided to build what I 
call the Purposeful Workshop. I love to write. My wife is running a nonprofit. 
So, we were starting to get into a situation   where her nonprofit was growing so much, 
and she was working in a spare bedroom,   in the little corner of the bedroom with 
the bed there.

She didn't have room. So,   we're like, “Look, why don't we give you my 
office upstairs?” We had a loft in our cabin.   I'm looking out the window, people see my eyes 
going up. Our cabin is literally right there. So, we decided, well, let's give her my old 
office. It's a nice big loft. It's great.   And we'll build a new building, which is where 
I'm at now. If you look behind me, this is now   my writing studio.

And we built adjacent to it 
a woodworking shop because I've always wanted   to get into woodworking. My wife's charity, 
we build free fences for low-income families   that have dogs on chains. Well, we also 
provide dog houses and we're struggling   to keep up with dog houses. So, I'm like, “Hey, I 
like woodworking. Why don't I build a woodworking   shop? I can start making dog houses. That 
sounds fun.” I had an interest in woodworking.   And we had the financial means to do it. So, 
I would say we're not underspending, we're   not overspending, we're spending what we know we 
can spend. And we have a mechanism to control it. Casey Weade: That's great. We had a question from 
Becky on Facebook right now. And I think it's   a valid question. She asked, “How can you tell 
mid-year if you're overspending?” So, go ahead. Fritz Gilbert: Hey, Becky. I know Becky. She's got 
a great blog, actually. She just started one out.   I wish it was something about 50. Sorry, 
Becky, put your blog name out there,   we'll give you some promotion. But 
yeah, Becky's a friend of mine.   Yeah, basically, Becky, what I can do by 
that when I'm doing the automatic monthly   transfers from Capital One, if there's money 
in our checking account, we're okay.

If we get   to the end of the month and we're starting to 
scrape low, we have a minimum kind of, we leave   some money in there, obviously, but we know if we 
get below X, hey, we kind of overspent this month. So, mid-year, we kind of just do it based 
on what's in the checking account. And all   the transfers from Capital One are all automated, 
they just flow every month. Pension obviously is   automated, flows every month. So, we know that 
we can spend what's in the checking account.   And that kind of becomes our month-to-month 
budget is just spend what’s in checking. Casey Weade: So, you're really keeping an eye on 
it from a month-to-month basis, not just looking   at it at the end of the year, we're looking at it 
every single month to see if there's little excess   or maybe not enough. And then, if you're saving 
for a vacation or you're saving for a new car,   is there a portion of that that's always set 
aside into a savings for those one-off expenses? Fritz Gilbert: Great point, Casey.

I built into 
this thing and again, I get into quite a bit   more detail than we will on this. But what I do, 
every January, obviously, I refill bucket one,   I set up the Capital One to run the monthly 
paycheck. Well, what's nice about Capital One   is you can actually set up sub-accounts. So, we 
set up a sub-account under Capital One that's   not part of my monthly paycheck. And I saw an 
article, there's a really good book by the Wall   Street Journal about retirement planning and 
I'll get the name, it's over on my calendar. Basically, if you look at things, 
like you got to replace a car,   you've got to replace an air conditioner, I live 
in Georgia, it's hot, you got to replace a roof,   you got to do siding repair on your 
house, those I call unexpected but   expected, you're going to have those 
unexpected-expected costs. And so, what we do   is if you look at a car, for example, let's say 
you're going to buy a car every pick a number   three years to make the math easy, let's say it's 
going to cost $30,000.

So, that's $10,000 a year,   high level, forget that there's residual value, 
I'm just using this as a demonstration. That would   be $10,000 a year that you need to be planning on 
for your car expenses. That's what? $800 a month. So, $10,000 every year, you need to have 
for your car. Well, I'm not going to buy   that in year one. So that 10,000 is sitting 
in my subcategory over there in Capital One.   In January of the next year.

I've got a reef, 
I've got to add to that unexpected-expected   budget, that amount. And what it comes down 
to is $12,000 a year. If you look at all those   things that you need, the car, the siding, look 
at an air conditioner, how long does it last?   15 years. What's the cost? 5000. You do all that 
math and you break down those major expenses,   which is all outlined in that blog post, in our 
case, that came out to about $12,000 a year. So, every year in January, I pushed 
$12,000 into that sub-account   and if I don't spend anything, great. The next 
year, I'll put another 12,000 in. The next year,   I'll put another 12,000 in. At some point, we 
got to buy a car. Well, we'll have the money   sitting there in cash in that sub-account because 
we're basically, budgeting for it every year,   even though it's a lumpy spend.

That's 
how we manage the unexpected-expected. And then, during the course of the year, if 
anything comes up that I kind of determine falls   into that type of category, we just pull out, out 
of that account. And again, look at January versus   December, you can see how much unexpected-expected 
spending you had just by subtracting the ending   balance from the beginning balance. So, it's a 
real simple way to manage those one-off expenses. Casey Weade: I love that, unexpected-expected 
expenses. This is something that we run   into with families we work with all 
the time. They'll come into, well,   what if I need a car? What if I need new air 
conditioning unit or new roof? And will you budget   for those things? I just thought this is really, 
I mean, what you just talked about, it's Budgeting   101. And this is people ask, well, how does Dave 
Ramsey's program, Financial Peace University,   how does that fit into retirement planning, 
that's more for people in the accumulation stage? Well, a lot of it goes back to budgeting.

And 
sometimes, we need to revisit those things if   we haven't taken a good look in a while. I don't 
want to go too far down the budgeting rabbit hole   because there's some other things I want to 
make sure that we get to, but I do want to ask   about that piece in your bio that says critical 
to success after crossing the starting line.   And so, that got me thinking, what is the starting 
line? Is the starting line your retirement date?   Does the starting line happen six months 
before? What is the retirement starting line?   I also think it's becoming a little blurrier, too. Fritz Gilbert: Yeah, no doubt. You talk about, 
can you work in retirement? Well, I would argue   I'm working right now, but I love this stuff.

This 
isn't work. So, to answer your question and then,   we'll get into the philosophy of it. To me, 
the starting line is the day you retire.   And the reason I call that is so many people think 
of retirement is the end. I've been working my   whole career, I'm finally done. It's not the 
end, it's the beginning of a whole new life. Retirement is a phase in life that is unlike 
any since you were probably 4 years old.   Nobody's telling you what to do. You can entirely 
decide what you want to do with your free time.   You don't have to go to work.

Now, with that comes 
the challenge of finding what you're going to do   self-driven. That brings you 
the joy in life. But to me,   the reason it's the retirement date 
is because that's the date that you   stop working for somebody else and you start 
doing whatever it is that you choose to do. And even if you decide to do a part-time job, 
that's fine to me.

You're still retired because   your decision to do that part-time job is if 
you've done your numbers, it's no longer driven   by financial considerations, it's driven by the 
fact that you enjoy doing that and you're only   doing it because of the non-financial benefits 
that that brings to your life. Hey, the financials   might be a nice little side benefit, but I 
look at my writing, for example, in my book,   I didn't write it for the income I got from 
it, I could care less, I would have done it   for free.

The reason I wrote the book is 
because, hey, I wanted to write a book. Retirement is that time in life when you can 
do something just because you want to do it,   you don't have to consider whether you're going 
to make money or not. You can think more about   those softer elements. People think about, oh, 
when I leave work, I'm losing my paycheck. Man,   there's so much more that you lose when you 
leave the workplace that people don't think   about. You got the social interactions. You've 
got the challenges, the deliverables. You got   your objectives with your boss.

You've got 
the presentations. You've got to do whatever. Those types of things provide some meaning in your 
life, a sense of accomplishment, etc. And I think   finding those things in retirement that can 
replace those non-financial elements of work   is a real sweet spot. And if you choose to do that 
through part-time work, that's fine. That's what   you’ve chosen to do in your retirement. You're 
still retired. So, yeah, the lines have blurred   because so many people are doing part time 
work. I would argue that my writing could be   perceived as part-time work. I view it entirely 
different. I view it as totally voluntary. We're leaving next week. We're heading 
out to Seattle to help our daughter move   back to Alabama. I'm taking a month off from 
writing. I don't have a boss. Sure, my readers,   yeah, I write every week, I've been very 
consistent, but if I want to take a month off,   I can take a month off.

That's a different type 
of work than when you're before the starting   line. That's post-starting line work, it's 
totally different than pre-starting line work. Casey Weade: It's voluntary work. And I make a 
parallel here with marriage, you don't have to   continue to work on your marriage, but if you want 
it to work out, you have to continue to work on   your marriage. And you're not working for money, 
you're working for fulfillment and a bigger life,   which is much like retirement. You never stop 
working, you're just working for yourself now   and you're working on yourself and that never 
ends.

Now, you post you’re starting by line   back a little bit and the original plan 
was to retire in 2017, so why the delay? Fritz Gilbert: Yeah, the main reason on that, 
Casey, there were two main factors. One,   I had an uncle who retired probably a little bit 
before he should have. And I was at a wedding and   we were talking about, I say, I'm thinking about 
retiring maybe five years or so. It was before I   started the blog, it was quite ways out. And 
he gave me some advice that just penetrated   and it stuck with me. And he basically said, 
“Look, Fritz,” he said, “when you're at that point   and you're close to thinking about retirement,” he 
said, “just really make sure.” He said, “because   you will never replace the income that you're 
making in your peak earning years. No matter   what you do in retirement, you'll never come 
close to making that amount of money.” He said,   “so just make sure because once you walk away, 
you're walking away.” So, that stuck with me.

The second thing was I shared that advice 
with a friend of mine who was retiring   a year before me and he decided to 
wait an extra year. And then, actually,   he was going to retire two years before me. He 
waited a year and then, he retired and he told me,   “So, Fritz, that was the best advice I ever 
got.” He said, “We have more money than we   need. There's zero financial anxiety in our 
life. I'm so glad I worked that extra year.” So, hearing that from both of those 
people, our numbers said we could do it,   but I'm conservative, I cushioned everything in 
our budget and I just decided, you know what? I   don't hate my job.

I mean, I'm still only 54. 
I can work another year, sure, it feels like   a long time when you're in the middle of it, 
but once you get out of 55, if that extra year   truly does lead to less anxiety for the rest of 
my life, man, that's a pretty good trade-off. So,   I did work one more year and now, looking 
back at it, two and a half years in,   I feel the same way as my friend did. 
I'm so glad I worked the extra year. We can build the workshop that I'm 
sitting in, we can do those things.   And yeah, I gave up a year of my life, that's not   a decision to make lightly, but the benefit of 
that is every year that I'm alive after that   is more relaxing and less stressful. So, that's 
kind of the trade-off you need to think about. Casey Weade: Well, Jonah Moffitt, 
if I pronounced that correctly,   who just posted a question to our 
Facebook as we're live here said… Fritz Gilbert: Yeah, I know 
her as well.

Hey, Jonah. Casey Weade: Is there anything you would have done   differently now that you've been retired for 
two and a half years? I would add to that,   was there anything that you overlooked or 
unique issues being retired so relatively early? Fritz Gilbert: Yeah. I want to be humble, 
but I'll just be honest. I am absolutely   100% content with the way we went through this 
process and I find it almost hard to say that,   but I struggle to think of something that I would 
say, “You know what? I wish we would have done   this.

I wish we would have done that.” There's 
nothing that comes to mind and even when I'm   just lying in bed, whatever, thinking, writing, 
whatever, there's nothing that I think about that   I have regrets over the process we went through. I 
mean, it's been that good of a transition for us. Casey Weade: Were there any surprises? Fritz Gilbert: I don't know that I would say 
surprises. I have actually been documenting,   I called it the Retirement Reality series. And 
I've written like five or six posts in this   Retirement Reality series, where I talk about 
what I'm thinking as I go through the various   phases. Like I talked about earlier, if you're 
six months before retirement, you can go right   back in my timeline and see where I was. Well, 
I've done the same thing post retirement after   I've crossed the starting line and I just finished 
one about the two-year mark and I think probably   the biggest thing that I would say is, I always 
kind of knew this thinking about what you wanted   to do and finding something that gives you 
purpose.

I knew that was important, but I   don't think I really appreciated how important 
it was until I actually lived it myself. And the   fact that I've got so much contentment right now, 
I think, demonstrates, I guess, the value of that. I think the other thing I think about when I hear 
that is probably the lack of appreciation for   how big of a change it is for both people in the 
relationship. You mentioned relationships earlier.   It's really, really important to think about 
how this is going to affect both people in the   relationship. And my transition was great. 
I've been thinking about it. Obviously,   my wife and I talked about it all the time. We 
were really thinking we were ready. I made the   transition. I was great.

I was motivated. 
I was writing. I was having a great time. Well, what happened in my wife's case was she was 
a pretty much full-time caregiver for her mom,   her mom had Alzheimer's. She lived with us for 
four years. And a couple years before I retired,   she ended up having go on a nursing home, but she 
was nearby and my wife went in almost every day.   So, it really was kind of my wife's 
job, was taking care of her mom,   being there for her. And her mom died three 
months after I retired in September of ‘18.   And my wife kind of went through 
a thing because she hadn't been   thinking about that as a job and suddenly, her mom 
was gone and she hadn't really gone through that   mental exercise that I had about what do we want 
to do post retirement that brings you purpose.

Her purpose was kind of caring for others. From 
the time our daughter was born 25 years ago,   my wife had been a caregiver and suddenly, 
that job was gone. And I think, in hindsight,   it's worked out great. She started this charity, 
she's doing great, we're loving life. But there   was, I would say, a more difficult transition for 
her because we didn't recognize that caregiving   was kind of the same as a job and we hadn't fully 
anticipated the impact of losing a parent and   how that changes what you do with your day. So, 
that's probably the biggest surprise, I would say. Casey Weade: Well, I wasn't going to go 
there quite yet, but let's talk romance.   So, I came across an article you were quoted 
in MarketWatch titled, How to Make Retirement   Romantic, love the article. And I mean, the 
reality is, I mean, just look at the divorce   rate. The divorce rate of US adults aged 50 and 
older has about doubled since the 90s.

It's the   fastest growing segment of divorce today. Why do 
you think that is? There's a lot of speculation   and a lot of people want to point to this 
or that what. What is your reasoning? Fritz Gilbert: Yeah, I think what it is, Casey, 
and I'm no expert by any means, I'm just one guy   and one wife.

We've gone through retirement 
recently, but I think if you look at COVID,   as an example, how many people have struggled in 
their relationships when suddenly the spouse who's   been going to the office every day or maybe 
both spouses are going to an office every day   and suddenly they're home working from 
home, bumping into each other all day long?   How many of them have kind of had 
a tough adjustment? Probably a lot. It's no different with 
retirement. I’ll share a story,   I put this in my book. I had a buddy of mine 
who his wife had been a stay-at-home mom,   this guy retired and he was a guy who 
his job was kind of making things better,   he was a process-improvement guy. So, he’d do any 
to analyze the way they're doing things and he’d   make them better.

That was his mind, 
that's what he'd done for years. So, he's watching his wife load the dishwasher 
or something and he starts telling her how she   could do it better. I mean, it's classic 
story, but that's what happens. She's like,   “Hey, I know I load a dishwasher, I've been doing 
for 30 years.” He goes, “Yep. Sorry.” I think you   have to recognize that going from one or both 
spouses being in the workplace all day long   to suddenly both spouses being home 
all the time is a big, big change.

And I think, fortunately, one of the things we 
did and I really encourage listeners, watchers   to do this is, as you're thinking about the soft 
side in that last year or so that you're working,   kind of reach an agreement with each other. How 
much time is going to be kind of we time, stuff   that we do together? What do you want to do on 
your own? My wife really got into pottery shortly   after we retired, okay, great. You've each got to 
have those individual things that you like to do   and you have to have the freedom to 
go do those without feeling guilty,   without the other one getting mad at you.

You've got to kind of have an agreement, hey, 
okay. You don't have to structure 10 hours a week,   whatever. I love to go to the gym, I take spin 
classes, I work out every morning, that's kind   of my time. My wife, she does her charity stuff 
which takes a lot of time. She likes to paint,   she's getting into some arts and craft-type style, 
that's great. She has some time for her stuff. I   have some time for my stuff. And we do a lot of 
stuff together. But kind of talking through that   and recognizing how big a change it's going to be 
and having a little bit of understanding going in,   of how that's going to work, and talk frequently 
once you retire and you're going through those   adjustments, “Hey, don't tell me how to 
load dishes, I know how to load dishes.” Having an open relationship, where you can kind of   be honest about what's irritating you about 
the other person, man, that matters more in   retirement than any other time because 
you're always together, and it's great.   But you've got to be prepared for how big 
of a change that is to a relationship.

Casey Weade: Well, I've been setting the 15 
Commitments of Conscious Leadership for a   while now. And one of the things 
that I took away from that book   had to do with communication with your spouse. 
Many people won't have these types of discussions   of things that bother him, the things that 
irritate him, that kind of bury those things.   And then, that actually leads to 
boredom in a relationship. You're   never going to be bored if you're always 
talking about stuff that irritates you. Fritz Gilbert: That's true. And again, you 
may never be happy. If you focus always   on the stuff that irritates you, you may 
never be happy.

There's a balance there. Casey Weade: There's a delicate balance. So, I 
feel like we should stay here a little bit longer   because we had about a half-dozen questions. 
There's probably more questions that we ever had   on marriage. We have questions that come from 
Facebook, but we also have some questions that   come from our weekend readers. So, for those of 
you that subscribed to Weekend Reading, you have   an email opportunity every single time before a 
guest comes on to present us with the questions. And so, I've got a couple 
here, and it's kind of long,   but I think it's important and I think it's really 
valid and relevant here. So, Shawn Peterson says,   I am currently 52. I plan on retiring in eight 
years at 60.

As a couple, my wife and I were   happily married, recently became empty nesters, 
enjoying some more time together. When I retire,   I truly believe that we are both looking forward 
to spending even more time traveling and working   on projects together. However, while I am still 
working away from home about 45 hours a week,   my wife also enjoys a considerable 
amount of time to herself. As we are looking forward to retirement and 
obvious concern of hers, I believe is that I   will be hanging around a lot more and intruding 
on her “me time,” my questions are two. So, one,   how big of a concern is this towards 
maintaining a happy marriage? Number two,   how can I help alleviate her worries in advance 
of retirement and assure her that I will still   respect her need for personal space? Then, Mark 
Linna threw in there as well on the same lines.   He said, how do you carve out space when you 
and your spouse are now together all the time   retirement? So, you got three different 
questions but all along the same lines.

Fritz Gilbert: Yeah. And I'll add to it, 
I actually went to a retirement dinner for   somebody I used to work with and his wife 
actually came up to me and said, “Fritz,   what am I going to do when he's home all the 
time? He's going to drive me crazy.” So, I mean,   everybody has that concern. And I've always been 
interested in the retirement topic. So, years ago,   I started talking to people in the workplace when 
they were getting ready to retire and almost every   single one of them raises this question. I don't 
know how it's going to work when I'm home all the   time. Well, everybody has that concern. And 
I think I applaud the reader for saying that   his wife is concerned about his invading her “me 
time.” That's exactly what I was talking about. You have to recognize that you have 
your routine, let's just assume   the guy is working and the woman's at home 
because that's what the reader situation is.   You've got your routine as the guy, you're driving 
to the office, you do your thing at the office,   you drive home.

Well, don't fail to recognize 
your wife has her routine. She's been doing   something for years, that's kind of her routine. 
My wife kind of has a flow to her day. She does   certain things at certain times. She likes to 
read at certain times, whatever. And I think   understanding that and recognizing it and talking 
about it before you get to retirement is exactly   what I was mentioning in our last little chat, 
that you've got to realize that that's going   to change, but you can still carve out time for 
both of you to do the things that you want to do,   while also accommodating the reality that 
you're going to have a lot more time together. So, I think it's a balancing act. It's 
not kind of a one-and-done discussion.   It's an ongoing thing, but I think the first 
important thing is to recognize that the change   is going to be equally big. If 
you've got a stay-at-home spouse,   the change is just as big for the stay-at-home 
spouse as it is for the one leaving the workplace   and don't ever underestimate how big of a change 
that is.

And you just have to talk through it. Casey Weade: And with this communication, usually,   there's some negotiation or compromise in a 
marriage and especially around retirement,   were you always on the same page with Jackie? 
Or were there some areas of compromise? Fritz Gilbert: Well, I'll tell you 
something we did. Well, first of all,   I would say, we thought we were always on the 
same page and we got a great relationship. I can't   remember the last time we had a fight, we're 
very compatible, we see things very similar,   but I think when her mom passed away and I was 
invigorated, I was still in my honeymoon period   of the retirement so I was on cloud nine, and she 
kind of obviously went through a mourning process,   not only for losing her mom, but for kind of 
losing that purpose that had been driving her.   We had some pretty good discussions through 
that because she said, I'm looking at what   you're doing and you're having a great time, and 
she was, I don't know what I'm supposed to do.

So, I think having that transparency in your 
relationship where you can have those discussions.   And we talked through it, I mean, obviously, I've 
written a lot of articles. My whole focus is of   finding purpose and self-driving, self-motivating 
yourself to do those things that matter.   So, fortunately, I kind of had that knowledge 
and we talked about it. And the biggest thing   I would encourage people might be a little bit 
of a sidebar, but let me mention this first,   if something interests you a little bit,   pursue it because what you're probably going 
to find is one of you in the relationship is   going to be more engaged with something and 
you're going to love it, you're going to be   getting all that fulfillment.

And the other 
one may not have found their thing yet. That was the case with my wife and I, I’d kind 
of found my thing and she had not yet started   her nonprofit. In time, she found it, but the way 
she found it, I think is relevant. And she saw a   Facebook thing, Mike Rowe, the Dirty Jobs guy. He 
does a Facebook show, where he profiles different   nonprofits and he profiled a nonprofit out in 
Oregon. I think it was called Freedom for Fido   that did exactly what we now do here in Georgia, 
where they build fences for low-income dogs,   get them off the chains. And my wife 
saw that and she was, “You know what?   We could do that here. I could do 
that here.” And that was the spark. And I think the takeaway is, she saw that and 
rather than just watch it and then go on to the   next thing, she took the first step. And within 
a couple months, she had a 501(c)(3) set up,   she had a board of directors, she had banking, 
she had a post office box, she was raising money.   We were building the fence within three 
months of that first time she saw the video   and it's exploded since then.

And she is 
absolutely loving it. She's found her thing. So, if something interests you, pursue it. 
And if you see that your spouse is struggling,   you're fired up, or I think a lot of times, the 
woman that talked to me at that retirement thing   was worried because this guy was pretty much 
a workaholic and he didn't have any outside   interests and she kind of had her life. She 
was doing her thing, she was going to whatever   she was going to during the day, she 
played tennis with other ladies, whatever.   And she knew that this guy didn't kind of have 
his thing yet. So, it all leads me to that same   thought process of how do you find your purpose in 
retirement. And if one of you in the relationship   has found it and one of you hasn't, it's 
probably going to cause some conflict.

Casey Weade: Now, I just have a question. Whose 
responsibility is them? So, you found yours,   your spouse doesn't, is it your responsibility 
to help? And if it is, to what degree? Fritz Gilbert: Well, you could go deep on marriage 
counseling here, I guess. To me, I look at it   almost like an addict. You can enable somebody, 
but you can't make them stop. They've got to want   to stop. To me, it's not unlike that. You can 
encourage somebody to, “Hey, I think you should   try to find a purpose” but such a broad statement. 
What does that even mean? The only person that   can find a purpose that really works for them is 
them, I don't think it's a problem if you want to. And in my book, I do a whole 
section on resources in the back   because a lot of people do struggle with this. 
And there are people that you can reach out to   that are professionally trained to help you 
find these types of things in your life,   but ultimately, you can't make your spouse 
do that.

It's got to be something that that   individual wants to do. And if they just 
don't want to do it, I don't know what to   tell you. You can't force somebody and you're 
probably going to have some bumps in the road. Casey Weade: That's great. Yeah, one 
more question on the relationship stuff   came out of something you had brought up in 
that MarketWatch article, you said that you   and your wife created an activity jar to focus 
on making the most of the next phase of life.   Can you tell us a little bit about that? I 
thought that was an interesting exercise. Fritz Gilbert: Yeah. And again, this was 
in that pre-retirement stage where I was,   how do you find things that bring fulfillment in 
retirement? I don't know where I got the idea, but   about a year before I retired, I kind of presented 
the idea and we talked about it.

We came up with   the concept. We put a cookie jar in our bedroom 
with a little poster thing next to it and we   kind of encouraged each other, “Hey, once a 
week, come up with an activity that you'd like   to do. It can be something we've done before, but 
ideally, maybe something we haven't done before.” So, it was neat because I didn't know what she 
was putting in the jar, she didn't know what   I was putting in the jar, but each week, 
we would each put an activity in the jar,   the thinking being on the day we 
retired, if we did one activity a week,   we would have two years’ worth of activities to 
do once a week, half of which were driven by me,   half of which were driven by her. 
So, it's a neat concept for either   one in the relationship to have equal influence 
on what you're going to be doing in retirement. And I'll be honest, we've gotten so busy at our 
own retirement, we haven't gotten anywhere near   through two years’ worth of activities, I mean, 
not even close.

But I think the mental exercise   of trying to find something every week is really 
good because I was on Google looking around things   in our area and things we hadn't done before and, 
“Hey, Chattanooga is not too far.” “Well, I don’t   know Chattanooga yet.” “Okay, we're going to spend 
a weekend at Chattanooga, put that in the jar.” So, it makes both of you think about what 
do you want to do in your spare time once   you get into retirement, whether or not 
you actually do it or not, surprisingly,   probably isn't the point.

I think 
the point is that you both have equal   say and there's an equal chance that you'll 
be doing something that either party picked,   so it worked out really well for us, but we've 
come nowhere near tapping into 100 items now,   probably 125 weeks in, we're nowhere 
near tapping into the hundred items,   yet. We can't, everybody says you're too busy in 
retirement. We really have found ourselves very   busy in retirement with things that bring 
fulfillment.

And if we have an open day,   we'll grab something, we'll do it, but it's not 
driving our retirement like we thought it might. Casey Weade: I just see this 
as a wonderful exercise for   anyone really, at any stage of life. 
Even a single going into retirement,   I could see how this could help uncover certain 
passions that maybe you don’t know you had. Fritz Gilbert: Yeah, I 
agree. I think the thing is,   find a way to stimulate yourself to think about 
what do you want to do that you haven't done.   It fosters curiosity. I've got to put something in 
there every week, I'm curious, what can I find to   do around here? Anything you can do to foster 
your curiosity, make a bucket list, whatever,   anything like that that gets your mind thinking 
about that post-retirement life, this goes back   to our earlier statement. The more time you 
spend thinking about your post-retirement life,   that's what this is. It's kind of a clever way of 
doing it, but what are you doing? You're thinking   about, “Oh, what do I want to do when I retire?” 
“Well, let's go to Chattanooga for a week.”   It's a creative way to think curiously 
about things that you can do in your area.

Casey Weade: I think this is a good time to insert 
a question we had from one of our Weekend Reading   readers. John Mueller asked, “What does a 
regular week look like in retirement?” I   think more importantly, here, 
along these lines, he said,   “Are there any remaining things left to do 
on your bucket list you would like to share?” Fritz Gilbert: Yeah, I tell you what, I   did a podcast a while ago and I was like, well, 
let me just tell you what I did yesterday.

So,   let me just try that now. And honestly, this was 
not prepped, I don't… so let me just tell you what   I did yesterday, I'll see if I can remember. Okay. 
We went out in the morning, nine o'clock. Well,   first of all, I walk the dogs every morning. So, 
I took the dogs out for a walk about a mile and   a half. After that, my wife and I went and build a 
fence, Freedom for Fido fence, for a couple hours,   came back after that, and I winterized my 
RV, which took a surprising amount of time   and then, after that, I worked a little 
bit on my blog and then we had dinner   together and we relaxed last night, just 
watching TV, watching a movie on Netflix.

So, I think what's interesting is each day 
is unchoreographed, what I found is adding a   little bit of structure in the morning through 
my classes at the gym, typically, right now,   my instructor is out, but otherwise, I would have 
been at the gym instead of doing the fence build,   probably. But all that to say, a little bit 
of structure is good because you can't just   randomly wander through every day, I found that 
that to me, it works better to have a little bit   of structure because that's one of the things 
you lose when you leave work is that structure.

So, I like having a class most mornings 
at the gym, so I kind of get out,   it's a priority for me, I work on the fitness. 
But then, I have an unstructured afternoon,   it’s kind of how I normally do it. So, 
that that answers that one. What was   the other part of the question? I just 
lost my train of thought there with it. Casey Weade: Are there any remaining 
things left to do on your bucket list? Fritz Gilbert: Absolutely. Oh, 
yeah, there's tons. I mean,   by design, my bucket list is kind of things I want 
to do for the rest of my life. So, my hope is,   there's still stuff on my bucket list that I don't 
get to by the time I die. So, there's many, many   things. One, I guess, for me is, right now, we're 
in a phase where the RV travel works really well,   we have four dogs. It's easy to take the 
dogs when we do the RV, but I would like   to get to a point where maybe we do a month. 
I've always had an intrigue with New Zealand.

We've been to Europe a ton. We traveled a lot 
when I was working, I'd frequent flyer miles,   but I would like to go to like New Zealand, 
Australia, and maybe just get like an Airbnb,   stay in one place for like a month and really 
get a flavor of living in some foreign land, so   extended international travel, multiple countries, 
but New Zealand kind of comes to mind first.   It’s probably the one I would think about 
from your instinct is to go to travel first.   What I tried to do on my bucket list, 
instead of just focus on travel,   I write in my book that life is like a wheel 
and your wheel has spokes. So, you've got your   spiritual aspects to your life, your relationship 
aspects, your financial aspects, your whatever. There's multiple areas in your life and try to 
create bucket list items for each one of those.   And I would say on every one 
of those different spokes,   the goal being obviously, you develop all 
your spokes equally because a wheel rolls best   when it's round and it's only round if all your 
spokes are the same length.

So, try to come up   with bucket list items on all those different 
aspects in your life. And I would say every one   of those aspects of my life have bucket list items 
that I still have in mind that I would like to do. Casey Weade: That's great. Now, you've given 
me a little bit of homework is to go through   and I see those aspects of life being maybe 
values to like, these are the things you value,   these are your values, maybe it's spiritual, 
maybe it's personal growth, maybe it's family,   but I love the exercise of going back and building 
a bucket list out on each one of those different   items.

That's really neat. Now, Fritz, we're 
running up against our typical closeout time.   Do you have a hard stop because I'd like to 
go a little bit further if you have the time? Fritz Gilbert: I'm wide open, Casey. Casey Weade: Awesome. Fritz Gilbert: I'm retired. Casey Weade: Well, I feel like we'd be remiss if 
we didn't talk a little bit more about RV travel.   We shared an article of yours not long ago how 
to RV in retirement. So, why an RV? It seems   like there's these two camps. There's RVing is 
horrible, it's a horrible investment, don't ever   do that. And then, there's the opposite camp, this 
is a great thing, everybody should be in an RV. Fritz Gilbert: Yeah, I think RVing is like 
anything in retirement. It sounds great,   but don't go spend a boatload of money on it until 
you really know it's something you want to do. I   mean, that's, I think, where the negative comes 
in, somebody goes out and spends 100 grand, gets a   big rig, they're all set, and then they go out on 
their first trip, and they realize they hate it,   where it sits in a parking lot 51 weeks out of 
the year.

That's where the negative comes from. In our case, we've always camped. When our 
daughter was young, actually both my wife and I,   when we were kids, ironically, our families 
camped, so we've always camped. And when   our daughter was growing up, camping was very 
important to us. But guess what? You're working,   so you can only do a weekend trip here and there, 
maybe take a week off, maybe if you're really   lucky, you get two weeks off, but we knew 
in retirement, that's all going to change. So, we already knew we had 
the love of camping. So, we   built it into our budget. We talked about that 
post-retirement spending and we made sure that we   had the money set aside.

That's red light number 
one is don't think you're going to get into RVing   if you haven't built in the acquisition costs 
into your retirement plan. Don't go out on the   day you retire and spend 100 grand, getting 
a big unit and not have it factored into your   numbers because you just… big mistake. So, that's 
where it gets a lot of the negative connotations. We planned it all in and we've loved it. 
The first year because my mother-in-law   was still alive so we didn't want to 
be too far away. So, we just did quick   weekend trips within an hour to home, enjoyed 
it, got to know the camper, great. Last year,   we took a three-month trip and we drove 
out to Seattle, our daughter was out there.   So, we spent the summer in the Pacific Northwest. 
It was great, took a month getting out there.   We stayed out there a month, took a 
month coming back. Fantastic trip. This year with COVID, everything else going 
on, we took kind of an intermediate trip. We   went up around Michigan's Upper Peninsula, we 
took a month.

The joy of RVing is that it is so   flexible. You can do a three-month cross-country 
trip, you can live full time if you want to.   Or you can just do a weekend trip close to home. I 
mean, it's absolutely flexible. And just make sure   you factored it in as you're doing your retirement 
plan. And I would encourage you if you've never   done it and you think it's interesting, just go 
and rent one. There are places you can rent an RV,   go rent them for a week, make sure it's 
something you really think you're going   to enjoy before you sink the money into it, but 
it's a great aspect of our retirement, we love it. Casey Weade: You said build it into your budget, 
that's the most important aspect.

And this is   why I received so much negative press, if 
you will, is that people have lost a lot of   money doing it because they made poor decisions 
and build it into their budget appropriately.   So, how do you go about building it 
into your budget? What are some things   to look out for? What do people often overlook? Fritz Gilbert: Yeah, I guess, the way that 
we did it, you speak to a lot more people   that are planning for retirement than I do, 
but I can share how we did it. And basically,   I knew that on day one of retirement, I wanted 
to have three years’ minimum of cash. Bucket one,   we're using a bucket strategy.

So, we've 
got three years of cash at all times and   knowing what that number was going to be. And 
now, let's say I'm two years ahead of retirement,   okay, I've got to do this per year to 
get to that starting number of cash. Well, rather than stop there, we also said 
in addition to that, if we're going to buy a   truck and buy a fifth wheel, we need to make 
sure we have the cash set aside for that,   so that we're not detracting from that three 
years’ cash cushion at the beginning. So,   basically, I just did a time series. Basically, 
I saved my bonuses, we took some of our 401k   savings and redirected it into after-tax so be 
liquid, things like that. We sold the house,   we had a big house in the city, we sold that, 
took the home equity, and used some of that.   So, basically, I just did the math and said, 
“Okay, here's how much we need on day one.

Here's   the income I expect to be able to fill that bucket 
with, how much do we have leftover?” And that kind   of determined the budget for how much we could 
spend on the RV. So, that's the way we did it. Casey Weade: What about on an ongoing 
basis, I mean, maintenance fuel,   is it pretty normal? Are the 
things to look out for there? Fritz Gilbert: I mean, what I did when we did 
this 11 months of tracking our spending and then   we went to a post-retirement guest, I basically 
factored in a travel line and I said, okay,   let's say we spent 100 days a year camping, 
I had no idea what we were going to do,   but I figured it would be probably less 
than that.

But let's plan for, again,   conservative budgeting. So, we did 100 nights 
a year at like $35 a night and we said, okay,   how many miles do we think we’ll drive? 
Let's say 10,000 miles. Okay, 10,000 miles,   let's say 10 miles a gallon because you're 
pulling a big camper. So how much fuel is that? So, I literally went through that level of 
detail in my thinking when we went from our   existing spending to our projected spending 
and whatever that calculation came out to be,   we threw that in there and when we were trying 
to determine, do we have enough money to retire   that spending, not only to include the $2500 
a month to health insurance we talked about,   but it included whatever that calculation was 
for RV travel.

So, yeah, we did factor it in.   And it's in that number that we set up through 
these monthly transfers into our checking account. Casey Weade: And you're able to do a lot of 
these things, I think, because you relocated and   correct me if I'm wrong, you mentioned this term 
geoarbitrage and I'd like you to share with us   just what it was like in a downsizing, why 
you chose Georgia and what's geoarbitrage? Fritz Gilbert: Yeah, basically, in summary, 
geoarbitrage is moving from a higher cost   location to a lower cost location, which allows 
you to spend less money and still enjoy life.   And what we found, Casey, we had a big house, 
suburbs of Atlanta.

Yeah, it’s fine, we're raising   our daughter, we had my mother-in-law living with 
us. It was nice to have the space but by the time   you're empty nesters, you got half your house 
sitting empty. I mean, it's got furniture in it,   but when's the last time you went into your formal 
sitting room or whatever people have these days?   You probably, if you have a big house, you have a 
lot of rooms that you don't use, but you're paying   for them, you got to heat them, you got to cool 
them, you got to pay taxes on the square footage. What we found by moving, we had a weekend 
cabin up in the mountains that we rented   for maybe seven or eight years before I retired 
and we came up here on weekends, we enjoyed it,   we just fell in love with the area. But what we 
found now, we probably have 2000 square feet,   it's perfect, it's comfortable.

We got a little 
bit tight on the office space so we added this   thing out here. So, I'd have my office writing 
studio. But what we found is every square inch   of our house is being utilized. We don't 
feel crowded, but we don't feel like we're   wasting a bunch of space. We have exactly 
the right footprint for what we need. So, what does that allowed us to do? It's allowed 
us to reduce our property taxes. We moved out of   a more expensive area. It lowers utility 
bills. The knock-on effects of downsizing,   it's significant. The property 
tax alone is a big issue.   Why Georgia? Main reason we chose Georgia is 
we already lived in Georgia. Georgia recently   recognized the importance of getting the 
tax structure right to attract retirees. So, they're not rated if you look at a 
lot of the Kiplinger's or whoever does the   state's attractiveness for retirees. 
Georgia typically rates pretty highly   in terms of what income they tax and 
don't tax retirees. So, their tax,   I'd say, maybe not the best, but they're 
pretty good.

So, it's a tax favorable location.   And we just like it. We're in the mountains. We 
got trout fishing out the back of our property.   We got a beautiful lake a mile away. We got 
hiking trails everywhere. I think the most   important thing is it just fit our lifestyle 
and what we wanted to do in retirement. Casey Weade: Well, you're definitely 
living that seven-letter motto in to life. Fritz Gilbert: That’s it. Casey Weade: I know you enjoy that. And I hope 
if you didn't catch that podcast, where we dove   into that article, please go back and listen 
to that, I think you'll really benefit from it.   I'm hoping that I get to have the 
opportunity to have you on again,   Fritz, and talk about ants versus grasshoppers.

Fritz Gilbert: That was a good one. Yeah. Casey Weade: Grasshoppers have to do with 
retirement. We'll just tease that one. And maybe,   we'll come back on for a short episode around ants 
and grasshoppers, it has to do with boundaries.   I'll leave that hint out there for you. As we 
come to a close here, I want to talk about your   book a little bit.

We have picked up a whole box 
of your book, if you could hold it up for us. Fritz Gilbert: Sure. Casey Weade: We've got a whole box of Keys to a 
Successful Retirement, a summary of the 24 keys   that Fritz's identified and experienced in his 
own successful transition into retirement. It is   a must read for anyone within five years. Every 
time we've got a whole box of these things here,   we're going to give them away until they're 
all gone. If you want to claim your copy,   all you have to do is leave an honest 
review for the podcast over on iTunes. You can go to retirewithpurpose.com, click on the 
podcast tab, it says leave a review right there   at the top of the page.

Or you can just scroll 
to the bottom of your podcast app and leave a   review there. That's how we get discovered. And 
that's also how you get a complimentary copy   of Fritz's book, Keys to a Successful Retirement. 
Fritz, thank you so much for joining us here and   again, I hope we get to come back and talk 
about ants and grasshoppers in the future. Fritz Gilbert: Oh, Casey, thank you very much. I 
really appreciate being on your show and I'm sure   you’re an ant just like I am and 
we'll have to talk about it. And   I would love to come back on it. I really enjoyed 
talking with you and I think we could talk for   hours.

Obviously, we see things very similar 
and I'd love to come back on your show anytime. Casey Weade: Awesome. Thanks, 
Fritz, until next time. Fritz Gilbert: Okay, thank you, Casey..

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I’m 50 with $1 Mil In My Retirement Portfolio and the Stock Market is down, the Power of Dividends!

regarding three years ago I had a possible customer come in to see me and he said Troy I'' ve been paying attention to you on the radio I saw your YouTube videos I truly truly like what you people are doing but I intended to come in and talk with you concerning my portfolio so he is available in we take a seat we get to the component where we begin to undergo his portfolio and it is essentially 100 tech supplies so it'' s all growth oriented it'' s however concentrated and focused into one market not a great deal of reward earnings no diversification his Focus was on growth while he did extremely well for several years over this past year he'' s most likely down somewhere between 30 40 50 percent one of things that I'' ve discovered after resting with hundreds of people throughout my occupation is that as soon as you obtain to retired life among one of the most safe sensations that I speak with people time and time once more is when they have multiple streams of revenue coming from various property courses so if the marketplace or I need to claim when the marketplace drops their lifestyle doesn'' t have to change if you ' re like a whole lot of our clients the value security and safety and security over large development possible after that this is a core principle that I absolutely count on I Carry out for myself and you might wish to consider it as a core piece of your retired life planning portfolio foreign first a couple ground policies below since everybody enjoying this video might have a differing level of experience or understanding so I wish to make certain we'' re utilizing the same terms and we understand what those terms really imply so'what we ' re discussing is returns development stocks so what does that mean well initially a returns is when a company chooses to take their cash their excess cash circulation and as opposed to reinvesting that in other possibilities they state you know what there aren'' t several chances around for us instead we assume one of the most important thing we can do with this excess cash circulation is return it to shareholders that'' s called a reward based on the number of shares you own you will certainly get a dollar quantity per share and that is your dividend per share occasionally it'' s referred to as what we call the reward return I'' ve rested with lots of advanced people for many years and they get perplexed when it involves reward yield versus the buck amount so I want you concentrating on the buck quantity when it comes to so reward returns Adjustment Daily for new capitalists if I desire to go buy a stock today it pays the same reward amount typically as it did the other day in terms of bucks yet the supply rate rises and fall so when we take the dividend quantity split by the stock cost we get a yield however that changes daily currently commonly on a quarterly basis a corporation'' s board of supervisors will state what the future returns will be they might maintain it the same they might increase it or they might reduce it firms that have a lengthy background of stating a returns that is greater than the previous year or the previous quarter those are called dividend growth supplies they have a lengthy background of paying those rewards however additionally enhancing the quantity of dividend that they pay you every year so for this evaluation and just as a whole moving ahead stop considering yield and start looking at the buck quantity that the returns offer you and when I close out this video I'' m mosting likely to come back to this concept and clarify a bit a lot more deeply why that'' s so crucial so this method can be very important if you ' re 50 like the title of this video or you'' re already in retirement or if you'' re in your 20s or 30s so I want to experience some of the numbers here we have a value of one million dollars this is just a great also round number I desire to start with the cost per share these are all presumptions or standards so we'' re simply assuming that the average share rate in this portfolio is fifty bucks per share that indicates we would certainly have twenty thousand shares twenty thousand times fifty amounts to a million I just wish to share the principle to you let'' s not get caught up in the specifics of the the typical share cost in these things currently if uh stock profile included 20 000 shares an ordinary share rate of fifty dollars the dividend yield is 3 percent however what that means is the supply is in fact paying a dollar fifty per share so if we go and acquire this now we would just take the total quantity of rewards that we receive divided by the investment one million bucks which obtains us a dividend yield but what we wish to concentrate on is the dollars per share currently we'' re going to think right here a 5 dividend growth rate this indicates that the firm in this profile usually over years have boosted their reward payouts regarding five percent per year that'' s what dividend development is now some firms have six percent returns without any reward enhances various other firms perhaps have one percent returns but they'' re increasing at 10 percent a year these are several of the subtleties when it involves Returns Stock Investing that we'' re not going to get into in this particular video clip but simply recognize a great deal of business do it a lot of different ways and what we'' re attempting to determine when it concerns a retirement portfolio is exactly how do we get a decent dividend along with suitable Dependable to an extent I state Dependable to a degree because reward growth isn'' t assured rewards themselves aren'' t ensured but if a company has actually paid and raise their dividend for two decades that'' s a rather Elite status the business is going to do is whatever they can to continue to pay that reward now you need to do financial evaluation and you have to understand cash circulation for procedures you have to understand the market the business economics there'' s a whole lot that goes behind constructing this sort of portfolio if you understand these points and you can do it it'' s a terrific approach to have in your collection when you'' re in the accumulation stage or leading up to retirement and even in retired life if we don'' t need this earnings what'we'' re doing is we ' re taking the rewards the thirty thousand dollars we ' re reinvesting'that implies we ' re merely taking this money that the cash money circulation the reward is the cash money circulation that the firms remember said we don'' t have a much better use this money so we'' re going to return it to shareholders in the form of a dividend that'' s you you take that money and you claim you know what I actually like that this business does that I'' m actually mosting likely to get more shares of these firms so we take the thirty thousand we at fifty bucks per share we get more shares which implies we get 600 more shares fine so at the end of year one below our worth is a million Thirty due to the fact that in this instance the cost doesn'' t modification it ' s still fifty dollars per share the value is a million Thirty now we have twenty thousand 6 hundred shares yet because we have a dividend growth price of five percent our reward is now a dollar fifty eight okay so let ' s summarize what ' s happened here in the very first year the returns paid of thirty thousand bucks we took those returns we reinvested we got even more shares so now we have twenty thousand 6 hundred shares the rate of the stock did not change yet another thing really important right here the returns boost it'' s a reward growth stock so currently rather than paying a dollar fifty per share it ' s paying a buck fifty eight per share and presume what we reinvested so now we have even more shares twenty thousand 6 hundred shares at a buck fifty eight per it our revenue is currently thirty two thousand five hundred and forty 8 and eight and a half percent boost from the prior year that'' s a pretty large rise to your'earnings all we'' ve done is we ' ve taken the the proceeds from the rewards we ' ve reinvested however it ' s not just a regular dividend portfolio it ' s a returns development profile so not only do we have even more shares paying even more returns yet those Returns are additionally higher since they'' re dividend growth supplies currently what occurs if the market goes down so when you'' re approaching retirement or in retirement it never feels great when the marketplace is down however in the title of this video I informed you that you need to be thrilled with this strategy when the marketplace does depreciate in value we spend a lot of our time right here at Oak Harvest Financial Team when the Market'' s down training our customers clarifying this is the strategy this is why you shouldn'' t be bothered with the marketplace going down due to the fact that this is where you ' re obtaining your income from this is what we'' re providing for tax obligations this is all part of our retired life success plan yet with this strategy when the marketplace decreases so instead of having a million dollars now we have 8 hundred thousand the supply rate is down 20 percent it went from 50 to 40.

Keep in mind since we reinvested year one currently at the end of year two we'' ve obtained thirty 2 thousand five hundred and forty 8 dollars of dividends couple points to note right here when the supply cost goes down the dollar quantity firms pay in returns usually does not change now it can alter if the board of directors says you recognize what there'' s an economic downturn coming our sales are expected to be down earnings cash money circulation everything is going to be injured we need to not raise the reward we need to possibly not pay a dividend that can happen it is feasible yet once more firms that have actually paid their dividends and raise their reward for several numerous numerous years take this extremely really seriously Exxon has not just paid their reward yet enhanced it for years for the previous several years prior to the current spike in oil Exxon was having to borrow cash to in fact pay their returns and enhance their dividend this is just how essential it was to them we have a number of Exxon staff members that are that are customers right here Exxon really quit their 401k contribution or the 401K matching program however they kept the returns repayments and reward boosts in place so while Dividends are not ensured dividend increases are not ensured what we normally see is when the stock market goes down that has no impact whatsoever on what the board of supervisors makes a decision to do with their returns repayment the only thing that matters with the dividend repayment when it comes to the choice that the board of supervisors will make where'' s our money circulation where are we at from a future sales and earnings perspective and can we continue to sustain this reward payment just how long will the recession last these are all the variables that go right into that choice obtaining a little off topic right here yet I want to direct out so now since of the rewards that we have from reinvesting remember we bought 600 shares last time now due to the fact that the supply price is down and we have a higher reward than where we started we'' re reinvesting and we ' re collecting even more shares so currently we receive 32 548 rewards uh rounded down here to 832 000 supply rate is still 40.

This is completion of year 2 21 411 shares however the returns raised again so now we'' re up to 1.66 which if we have twenty one thousand four hundred eleven shares at a buck sixty six per share thirty five thousand five hundred and forty 2 dollars in reward payments which is a 9 point 2 percent rise in returns payments over in 2014 and an eighteen and a half percent rise over when we originally made the investment when the securities market goes down with the dividend growth approach and reinvesting those rewards we can make use of that by reinvesting purchasing more shares at depreciated costs and at some point later on in life when we require retirement income all we do is we turn the switch and instead of reinvesting now we have an earnings stream that our company believe would is has a good possibility of continuing to enhance assuming we'' re doing the proper economic analysis we have a balanced portfolio throughout industries and we have companies in that profile that have excellent money circulation and we anticipate those capital to proceed based upon a fundamental evaluation of the company'' s organization currently allow ' s fast onward one decade in time share cost is still fifty dollars we have actually collected via reinvestment thirty thousand shares at a 5 percent ordinary dividend development price we began at a buck fifty now we'' re as much as 2 dollars and forty 4 cents per returns we take our dividend multiplied by the variety of shares now our revenue is up to seventy three thousand two hundred bucks I have this concern mark over below on the value because I wished to ask you what is the value of the portfolio well rather straightforward we take the variety of shares we increase by the share rate three times fives 1.5 take all the nos 1.5 million dollars so what'' s truly cool about this strategy if done correctly in time in taken care of and checked and taken notice of due to the fact that we'' ve built up a lot of even more shares our initial million dollars has grown to 1.5 million bucks and we have an annual revenue of seventy 3 thousand 2 hundred and there'' s a sensible expectation that that revenue will certainly remain to enhance due to the fact that this is a reward development supply strategy so once again none of this is ensured if we desire assurances we need to want to more surefire devices we most likely shouldn'' t placed all of our cash right into this dividend stock approach container since once more it'' s not completely guaranteed however returns stocks can be an extremely beneficial property course in retirement it'' s a there ' s a reason why they ' re component of what we call our core 4 below at Oak Harvest Financial Team but this is an example of just how we can customize a retirement income and development prepare for our clients that takes the issue regarding the market drop a little bit off the table for for many individuals because we have a prepare for when that happens alright as promised I told you I was mosting likely to come back to the concept of why we wish to focus assigned the dollar amount that the reward pays in contrast to the return over the years I'' ve sat with actually hundreds of people that they attempt to construct their very own reward portfolio and what they do is they head out and they try to find the highest yields I can'' t inform you what a devastating strategy this can be over time while it sounds good and you assume hey I can purchase these funds or I can get these supplies and I can generate nine percent on average yield and my million bucks obtains me ninety thousand well it it appears great originally and a few of you watching this video I recognize you'' re doing this so I am speaking with you since this might make a big big influence on your safety and security long-term there'' s a reason typically supplies pay at what we call a greater yield or a 9 percent ten percent 12 percent yield when you recognize the principle the mathematics behind it hopefully you can convert that into an understanding of the inadequate organization basics of those firms if a stock is trading at a hundred bucks per share and it pays a five buck reward that is a five percent return however remember I wanted to focus on this too numerous individuals focus on the yield currently the firm gets poor news it attempts to preserve its reward so it doesn'' t intend to nest always minimize the reward or get rid of the reward quite yet however sales are down margins are obtaining compressed there'' s a new rival ending getting in the industry possibly innovation and automation is changing the landscape the firm'' s in trouble so the supply price institutional capitalists recognize this they start to short the supply they begin to offer the stock and a great deal of people hang on to it due to the fact that hi there we'' re still getting our dividend currently you come and you state oh man there'' s this 10 yield stock out there it'' s paying 5 dollars a reward and I can get it for fifty dollars per share well of course you'can purchase it you ' re going to get a 5 buck dividend which is a 10 yield but the only reason it'' s a 10 yield is since the stock has actually lost one or fifty percent of its worth it'' s dropped from a hundred to fifty dollars so the supply is not appealing the principles of business are weakening we do not wish to have a profile of a lot of companies that are in essentially hindering weakening Economic problem in order to grab return so of course we spend our million dollars we get a hundred thousand a year if we do this however when the firm and a great deal of these business they won'' t turn the service around they'' ll cut the returns'it ' ll go from 5 dollars to 3 bucks typically they try to maintain it to some extent as soon as they reduced that reward the stock once again more than likely is going to go from fifty bucks a share to twenty dollars a share to ten dollars a share something along those lines so currently your financial investment allow'' s state it ' s a hundred thousand bucks it sheds 50 of its value so you'' re down 50 yet in addition to that the business has actually reduced its reward so currently you'' re not getting the five dollars per share you'' re getting 3 dollars or 2 bucks or maybe nothing that is very really possible so this is why you do not intend to grab yield you do not desire a portfolio of seven eight 9 ten percent returns paying stocks due to the fact that there'' s a factor commonly they pay those high yields and it'' s not since business are doing remarkable simply a short Disruption here I wish you'' re really enjoying this material do me a favor please share this video clip with a pal or member of the family potentially an associate a person who you understand might take advantage of this video it aids them and it additionally assists us [Songs] thanks

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The 5 Most Important Years Of Your Retirement

as a parent when you have your initial kid there'' s no shortage of people to remind you just exactly how important the very first five years are of your child'' s development regrettably there'' s no similar Network there'' s no similar details resource for us as we retire what are one of the most essential 5 years of your retirement so I'' m gon na intend to damage that with today'' s video allow ' s go with a walk and also I ' ll I ' ll share my ideas with you with you having actually been a cost just economic consultant for over 20 years now and also I'' ll I ' ll cut ideal to the chase I think one of the most important years just like with your kid are the very first five years and I wish to share that you understand this is a large transition if you'' re considering retiring'if you ' re obtaining near retiring this is a large change you believe about like you recognize a very long time ago perhaps when you initially left house whether you went to college or you established a trade and you went off by yourself to begin quote unquote adulting the shift from secondary school to university where you placed everything you possess in a couple luggage and also you bid farewell to the individuals that have actually been nurturing you for for your whole life that'' s a large huge'shift I ' m sorry that history noise is a train you actually can'' t see it yet it ' s there alright so that ' s a large transition and the shift to retirement is every little bit as huge right I imply it'' s it ' s the entire globe that you ' ve understood for a long long time and just like with a teen uh or a young person avoiding to university your identity will change also so you understand the it'' s a huge change but it'' s essential that you enter with both feet it'' s crucial that you start on the right track as well as you recognize among the keys is is to recognize what your goals are what your hope you recognize what you'' re mosting likely to mean what you'' re wishing to carry out in retired life not that you need to have an order of business however you recognize these are the points that are very important to me as I retire and you can upgrade them as an example for me um for me I I sort of when my day concerns retire I'' m not retired yet but when my day involves retire things that I have actually considered that are going to be vital to me and are very important to me now are leading relationships um you recognize when you function sadly you'' re unable to spend as much time with the individuals that you enjoy as well as you care around so I'' m really hoping to invest even more time with my adult youngsters I ' m hoping to spend even more time with my wife and also with with pals that imply a lot to me that sadly now I'' m unable to spend a great deal of time with so I intend to invest a 4th of my time on connections I wish to spend a fourth of my time on my health and wellness having your wellness is truly key once you shed your wellness you understand it'' s a retirement ' s gon na look very various for you so doing what I can to eat in a healthy and balanced means to function out on a regular basis to keep my health is mosting likely to be essential then I'' ve always been a long-lasting Learners so I intend to proceed to learn so a fourth of my time on connections a 4th of my time on my health and wellness a fourth of my time simply learning I simply enjoy learning and after that a 4th of my time as an instructor as well as that'' s component of what this YouTube channel is is is repaying and also as well as sharing with folks I'' m fortunate what I ' ve spent my life'my life ' s job is something that uh brings worth to a great deal of individuals it'' s not it seems like usual feeling to me since I ' ve been doing it my whole grown-up life similar to whatever you'' ve been doing most of your grown-up life possibly feels like good sense to you so it'' s important to jump in with both feet it'' s vital not to be thrifty you put on'' t have a monetary plan and also recognize what your goals are and you know lots of normal audiences of my network right we'' re good Savers um we'' re proficient at identifying what our goals are and saving towards those however I wear'' t desire you to be penny-wise and also it'' s natural I ' d state well over half of people you understand whatever their budget plan is whatever their strategy states that they can invest they finish up you understand still conserving 25 or 30 percent of that and wear'' t do that right it ' s it your entire life has been a balance between present you and also future you and now this is your future your uh the future you so be sure to invest that money and also enjoy it these are your healthiest most energetic years uh I likewise assume it'' s uh'it ' s it ' s excellent to have a financial plan if you don ' t'have a plan young boy it ' s actually difficult to recognize just how much money you can spend as well as you recognize a great deal of individuals are giving up unnecessarily you wear'' t wish to do that you put on ' t have to do that so have a financial plan and have a strategy an installment plan um that I already spoke around ideal believe about how am I going to invest my time 24-hour a day is a lot of time right a significant component of our life has been spent at the office fine various other reasons that the first five years are very crucial there'' s some large choices that require to be made in the initial 5 years allow ' s say you'' re 60 as well as um and you ' re retiring early a lot of visitors of my network are intending to do that or you'' re 62 or 63 you know there'' s some big choices that require to be made in between you know let'' s the initial let ' s claim 60 to 67 60 to 68 also over that yet you recognize Medicare Medicare is not as easy as just raising your hand claiming hi there federal government you recognize I'' m 65 years of ages now I'' d like my paramedic I ' d like my medicare right you need to choose do you desire your uh traditional Medicare or do you want what'' s called Medicare Advantage which is a terrific advertising name uh standard Medicare is offered by the federal government Medicare advantages is offered by an exclusive company and you can transform your mind on that particular yet if you select typical Medicare uh it has a twenty dollar insurance deductible for Medicare Part B and you can you can purchase Medicare gap insurance policy and typically beyond a couple of exemptions you need to go with clinical underwriting to be authorized so if you have a pre-existing problem an insurance firm can refute you the meta the Medigap insurance but when you first get Medicare I am not a Medicare expert but you have a 6 about a six month window where you put on'' t have to go with the medical underwriting you obtain an exemption for that so that'' s a big decision'additionally when you ' re mosting likely to begin taking Medication uh when you'' re going to start taking social safety is a big decision so the initial 5 years are crucial one more factor is because you'' ve got these huge decisions that you need to make as well as after that unfortunately this is just a truth that all of us face in the very first 5 years we Face what'' s called series of return danger it ends up that having adverse returns having poor stock market returns in the early years of our retired life are have some of the greatest impact as to whether our economic plan achieves success or not and also none people recognize what the first 5 years are going to be like but that'' s one of the reasons that the initial 5 years is so vital another point that'' s vital if you'' re curious about this subject is to enjoy this video up here that speak about five reasons to uh it discusses I'' m sorry average income for retirees as well as this video clip down right here that speak about five reasons to retire as quickly as you can thanks for viewing bye bye

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How to Live a Big Life in Retirement with Fritz Gilbert

Casey Weade: Invite, Facebook Live. This is your.
host, Casey Weade, of the Retire with Objective podcast. And also today, we have an extremely exciting.
visitor. We have Fritz Gilbert here with us today. And also if you are thinking about retired life.
in any way, after that you'' ve most likely satisfied Fritz, you ' ve most likely found some of his articles,.
especially in our weekend reading for senior citizens, that collection of 4 short articles we send out.
each and every single Friday with commentary from myself. He'' s obtained among the ideal blogs on retirement,. if not, probably the most effective blog on retirement around in the world today. He'' s won honor after. award for his service theretirementmanifesto.com. We ' ve got an actual live senior citizen below with us that ' s. living a huge life in retired life.
We ' re going to chat regarding his RV escapades.We ' re mosting likely to be. talking about marital relationship and also

what that ' s appeared like in retirement, contrasting that to his working life. We additionally are mosting likely to be going over Fritz ' s book, Keys to a Successful Retired life. So,. if you are thinking of retirement, perhaps have some good friends that. are thinking of retired life, they can benefit from this sort of content,. please share this, start a watch party, throw their name right down in the comments. section, so that they capture this content. And also if you have any type of inquiries, this. is a distinct possibility for you.
Only for the people that follow our. Facebook web page, if you suched as
our page, you get to enter these check outs and also you get. to present your concerns to our world class professionals. If you have any concerns concerning. retirement, regarding the experience of retired life, perhaps even simply RVing or marriage and retired life,. this is a possibility to get those responded to, so simply create your questions right in the comments. section, I will certainly have those questions fed to me.
Now with Fritz', Fritz will certainly respond to those inquiries on the back end as well as make sure you obtain. Fritz, welcome to the podcast. Fritz Gilbert: Casey, many thanks.
I ' m honored. to be on your incredible show as well as I truly value you having me on.
Casey Weade: Well, I ' m delighted to have you below. I was first introduced to you independently a couple months ago or so.
It was about the retired life slogan as well as something finished. We in fact ended up doing a little small podcast on that very post. I just actually delighted in that whole thought.
You ' ve got a whole lot of. truly good thoughtful web content that you'place out there, not just on the blog, but in MarketWatch. as well as other places.And I ' ve taken pleasure in that. I think you bring an extremely impartial nature to the web content.

that you place out there. And it ' s seldom that we obtain to satisfy a real live retired person that ' s. living it and also still studying it every day. Fritz Gilbert: Yeah,
I assume that ' s what I listen to. from a great deal of my readers, Casey, exists aren ' t a great deal of old men like me that are blog owners. I indicate, you obtained a lot of the young fire
men, that ' s wonderful, and women, I mean, there ' s a lot of. fire bloggers, which
' s good.But I believe for'the child

boomer target market, there aren ' t a great deal of.

blog owners. And also I listen to that regularly that, hi there, you'' re among the couple of that are in fact living it..
I didn'' t retire at 35. I still got a little bit'early, that ' s wonderful. I ' ve.
I retired, I simply type of took a flyer, started the blog, and I figured out that I love.
writing. And also it'' s really added a great deal of value to my individual retirement to enjoy the difficulty of.
composing. As well as after that, the communication with readers, the podcast, the interviews that we''
re. doing currently, these types of points, it'' s produced this entire element of my.
retired life that I never ever saw it coming as well as I like all aspects of it. So, I.
appreciate your kind words regarding my work. Casey Weade: Yeah. So, you retired in 2018? Fritz Gilbert: I did. Casey Weade: And how much time have you been.
doing the blog? The amount of posts you have currently? Fritz Gilbert: 250-ish.

I started 3 years.
It ' s been a little over five years. I ' m most likely closer to 280, I guess. And what'' s nice concerning recording it now is on my blog, I''
ve.
retired life and also what I was thinking of. it'' s kind of cool that'I ' ve recorded it. And also so,.
yeah, I'' ve been creating 5 years each week. Casey Weade: That ' s so neat that somebody at a.
specific amount of time from retirement can go back to possibly right where you are, right where.
you were and learn what you were undergoing experiencing at that time.What would certainly

you state is.
your biggest learning moment as you'' ve done all this job, all this study, all this writing?. And also then, perhaps it ' s tough to identify that a person big thing, yet what would be among the large takeaways.
for you and also all your writing and also setup? Fritz Gilbert: Yeah, I mean, the one point.
that appeared my mind right now and I really do believe it'' s possibly one of the most. vital thing and I blog about it rather a little bit in my publication as you know is … okay, allow.
me start with a holistic comment and afterwards, I'' ll funnel down to what the point is.A.

lot of individuals have problem with retired life and also your possibility of depression increases by 40%.
during retired life, probably a lot extra in the COVID environment because people are.
secured down, mental wellness problems, etc. As well as when I was regarding a year or more from.
retirement, I was actually intrigued, what triggers some people to deal with retired life, whereas.
other individuals appear to have a great retirement? What'' s the research say? And what I located
. was, they located the highest possible correlation to those individuals that have had.
a fantastic retirement has been just how much time have you place right into planning for.
retirement before you got there.And clearly,

I was borderline compulsive. I was blogging about. it for three years. I was assuming regarding … Casey Weade: Arguably still so. Fritz Gilbert: What's that? Casey Weade: Perhaps still.
so. A little obsessed maybe. Fritz Gilbert: Oh, perhaps a little bit, however it'' s a. healthy fixation.'What I ' ve discovered was those people that invest the most amount of time thinking.
concerning retirement. What they desire their life to be, not just the economic things? What do you.
What passions you? What do you desire to seek?
that you invest assuming regarding them, to me, is the most significant point I'' ve found out since having been.
via it myself and spending that much time, my transition to retired life, Casey, was.
definitely remarkable, it was smooth, it was definitely enjoyable.And I ' m 2

as well as a half.
years in currently as well as I still absolutely love every day of retired life. I'' ve not gone through any.
monotony, I'' ve not gone via any anxiety, I'' ve not gone through any kind of loss of identification..
A great deal of those points that individuals struck, I'' ve not experienced a single among them. And I do attribute a great deal of that, a few of.
it'' s simply probably my natural positive outlook, whatever your individuality, however I believe.
the most significant aspect that people can control is the reality that I spent a lot of time.
believing about it, and any person can invest time considering it.It ' s simply, recognize.
that your work is coming to an end and begin ramping down the amount of mental power.
you put right into your job, still do your task. I was doing 110% right until completion, however when.
you'' re not functioning or when you ' re commuting, rather than considering that teleconference.
that you screwed up with, with a boss or whatever, placed it out of your mind, it'' s going to be gone in.
Don'' t devote that to work anymore.
a means to place increasingly more of that power right into considering what you desire your.
life to be post retirement. That'' s the greatest takeaway that I would claim, I'' ve learned. Casey Weade: Well, I see that.
with the households we function with. You'' ve got those couples that will certainly.
been available in as well as state right here'' s whatever, just tell me what to do. As well as then,'you ' ve obtained the. others that intend to rest down, they need to know, they intend to understand where they'' re at,. they want to recognize where they'' re going, and they intend to have deeper conversations.They.

wear'' t intend to simply chat regarding the money stuff. They intend to get involved in those truly significant.
conversations about purpose as well as retirement. And those people that are ready to not.
just, they can be found in and fulfill with an advisor and also in two hrs, they'' ve got a plan
. as well as they'' re on their means to retired life, I find they ' re not nearly as happy,
not almost as. pleased as those people that want to place in the moment to be there for four or five.
conferences as well as really get a little bloody-eyed honestly with us.Let ' s actually get into this.
stuff and also get enlightened as well as know what we'' re doing. And afterwards, if you place that time out on the.
front end, I discover those individuals aren'' t returning and also continually asking concerns.
and continuously bringing up worries, it'' s the ones that didn ' t put in that time.
to truly comprehend that have that issue. Now, you said that you began with.
the monetary stuff.In your biography, it

says one of the leading bloggers on the. topic of retirement with a focus on both the harder and also softer problems that are critical. to success after going across the starting line and state harder would be economic, softer would. be way of living. You started with the more challenging things, but after that, wear ' t assume you rapidly change. to the softer'things? Is there one that ' s more essential than the various other? Must we begin with. the more challenging stuff or the softer things initially? Fritz Gilbert: I believe it ' s natural to start with. the harder things. When you discuss purpose
which kind of thing to somebody that ' s, allow ' s say,. 3 or possibly five years or even more from retirement,
life modifications. You wear ' t necessarily recognize. what you ' re going to be interested'in. As well as the only thing that truly'matters. when you ' re believing concerning retirement and you ' re even more than 3 years out', it actually. is the financials.Are you conserving sufficient ? Are you'on a path? If you run some calculators,
. if you chat to a consultant

, do you type of have a concept of when you ' re considering retiring? And also.
are you conserving strongly sufficient to get there? I would state the financials'are essential. but not adequate.
You need to have them, however if you quit with just the numbers, you ' re.
Plainly, you ' ve got. if you are going to have just one of the two, plainly,
you ' ve got to.
They were overly confident on exactly how much social. As well as for the first, up until maybe you'' re.
If you ' re within 12 months of retired life and. you'sanctuary ' t started thinking of the softer stuff, as I call it, male, red light. Think. concerning it due to the fact that it actually, actually matters.
Casey Weade: It ' s an excellent timeline and. Is this even worthy of my time and also initiative right currently to try to assume. Let ' s simply order a calculator, maybe rest.
That'' s when we are looking at those softer points. And also as we obtain closer, if we go, yes,.
I might retire as well as indeed, I intend to retire. Now, we need to create a particular plan of.
Currently, we get into the nitty abrasive details. Fritz Gilbert: Yeah.
can do top-level numbers, certainly, you can approximate your living expenditures as well as everybody requires.
Sorry, I got a coughing today. Hope, I wear'' t have. We saved 20 %, 25 % and also we just invested the rest.
So, we never ever truly tracked our costs. As well as we experienced a complete year when I was around.
2 years out, we tracked every spending we spent as well as we built a very based projection of kind.
of, fine, this is what our current investing is, exactly how do we see that altering in.
retirement? And after that calculating, do we have enough to retire based on that?.
Well, clearly, you can'' t do that exercise without thinking about what do you want.
to spend your cash on in retirement? The RVing is an example. We were already assuming.
around, we intend to take a trip, we want to do RVing, we want to do points like that, so allow'' s element.

that in.When we adjust our current costs to our post job investing, allow'' s aspect. in some spending for motor home traveling. So, you sort of have to consider your. retired life way of life and also what that'' s going to set you back as you undergo the monetary.
exercise. It makes it a whole lot more precise. Casey Weade: It'' s fantastic to me exactly how several.
individuals that we'' ll take a seat with for the initial time. They'' re just mosting likely to retire. this year and they ' ve never assembled a budget plan. They have no concept just how much they're.
investing. As well as it'' s simply really worrying for me if that'' s the instance. As well as I question what that.
experience resembled for you when you initially made a decision to start putting together that.
budget, whether devices that you utilize, I mean, possibly you didn'' t do a budget for a decade. or much more, now you need to go back as well as do a budget.Was it a spreadsheet? Exactly how did you.
track the investing? Did you have an approach? Fritz Gilbert: Yeah, I basically simply took.
a spreadsheet, I'' ve sort of always been a spreadsheet individual, I'' ve always tracked my net.
worth and points like that on a spread sheet. And also Casey, I mean, I would literally just stick.
receipts in my pocket or if I made use of a credit rating card or something, I would simply send myself a.
fast e-mail or message on my phone, whatever. And afterwards, when I reached my computer, I'' d open.
the spread sheet and I'' d placed in whatever we'' d invested money on because the last time I took a seat with a.
spreadsheet.So, a couple times

a week, I'' d rest down, I ' d state all right, gas, $ 32 or whatever. As well as I.
sort of damaged it into significant costs classifications. Transport, housing,.
insurance policy clearly a big one. And also I did kind of capture it by spending plan. Actually,.
I have a spending spreadsheet on my internet sites cost-free to publish anyone that wishes to go out there..
So, I'' ve obtained the spreadsheets that I made use of. And also I put on'' t assume you need to overcomplicate it,.
the secret is, like you stated, I never ever tracked it, you can'' t quote just how much you ' re spending,
. due to the fact that you'' re going to miss out on some points. And also what I found interesting, as I experienced.
it for the year, you put on'' t understand just how much cash you'' re costs on some things as well as it offered me an.
opportunity to test several of our costs, insurance concerns the mind, I shopped our.
car insurance, I hadn'' t done that for many years and also conserved a fair bit of money.So, among

the additional benefits of doing it is you can kind of see.
those locations that you might intend to think about, Hey, exists an opportunity to possibly.
Reduce some investing in some locations? Casey Weade: If you can'' t. Fritz Gilbert: Yeah, primarily, like, allow'' s talk.
made use of to have retired person wellness insurance, they'' ve discontinued it. What do you use for health.
insurance policy estimate? As well as you can'' t just presume, I suggest, it ' s a huge unknown.
What I would do. in a situation like that is I would do some research study, I would sort of locate the regular non. subsidized since I do have a pension, so I wouldn'' t get approved for the ACA.
subsidies or anything like that.So, what is the full-burdened expense of private.
medical insurance? And I discovered arrays, however claim 2500 is type of on the.
As well as we did that for generally whatever.
type of approximated a little on the high side, the logic being, I'' d rather have shocks.
to the excellent than surprises to the poor. Our entire retired life budget, currently you could.
suggest, well, maybe I had to function longer than I truly would require to. Yeah, to me, what.
would certainly it be? A couple months, six months maybe, I suggest, also a year, I finished up working a year.
We ' re falling below those forecasts. And also our withdrawal. rate is slightly lower than we predicted and also whatever ' s good. So, there ' s a. lot much less tension and a
great deal extra enjoyment when you get right into retired life if you ' re much more. conservative on the planning side, in our case.Casey Weade

: Currently, I presume, examine one,.
are you continuing to track your investing? And also are you investing even more today than you.
did when you retired back in June of '18? Fritz Gilbert: Yeah, excellent concern. I actually.
got an inquiry from Facebook regarding the bucket approach. So, I believe I can most likely discuss.
Below'' s just how I did'the costs monitoring, I put on ' t desire to sit below.
this, I'' ve got write-ups concerning it, if you look for the bucket approach on my blog site, primarily,.
I created a retirement paycheck and also I relocate cash each month from a Resources One 360 money market.
account into our checking account. As well as every month, I'' ve got, so I know in January, just how much.
was in that money market fund, I transfer money on a monthly basis, I can track my pension can be found in.
conveniently enough.At completion of the year, all I need to do is look at the start balance minus.
the ending balance and I can see just how much we spent out of our Funding One 360, add my pension plan to.
it, boom, I recognize how much we invested in the year. Now, I can'' t track it down to the.
group degree, yet I wear'' t need to, as long as I recognize that we'' re within.
I imply, it literally
takes me 30 minutes a year to do that. that ' s how I track my investing currently. Casey Weade: As well as are you spending much more?When we.
make increasingly more money while we'' re working, we have way of living creep, we often tend to.
spend much more on retirement.You locate that maybe your portfolio is doing better. than you had projected or you have a little extra revenue than you had projected. Do. you see some creep as well in retired life? Fritz Gilbert: Yeah, interesting inquiry,. Casey. I believe, if you take a look at the research study, the substantial majority of senior citizens comprehend what. they can be investing. And I created a short article called, It ' s Time to Live Like Nobody Else,. the Dave Ramsey quote. Live like no person else, so later on you can live like no one else. Well,. now, it ' s later on. What does
live like no one else after retired life look like? So,. I wrote an article concerning it. As well as primarily,
what I stated in that post is I ' m. going to spend what we can invest. I'' m not going to underspend since numerous retirees come under. that all-natural, specifically if you ' ve always been lifelong persistent, you'underspend your income,. you do an excellent work conserving, your natural propensity is to be a little bit frugal.And when you know you can.

spend X, your natural propensity is to spend much less than X, however you don ' t demand to. If you look at all. these Trinity research studies, etc, you can spend your X. So, what I established was this regular monthly. transfer from the Funding One which came out of pail one cash, I can.
invest that entire monthly transfer. It ' s all determined, I don ' t need to. bother with it. Market may fluctuate, but I ' ve got three years of money. I can compose out. the storm. Basically,'what we ' re doing is we ' re investing up to that amount. And we'got into. a circumstance, I composed my publication, undoubtedly, I assumed no revenue in retirement. Once again,. conventional assumptions across the board. And I '
m making some revenue in retirement. I'created. my publication, I make a little of money on the blog, not a lot, however it assists. what we ' re doing. when we'found that we were underspending, we'' re like, “Well, we ' ve obtained a bit here
. What should we do?” As well as we'' re adding, we'' re extremely right into charity', we ' re supporting.
our church, we'' re tithing, points like that. So, we determined, “Well, you know.
As well as we made a decision to develop what I. My wife is running a nonprofit.
She didn'' t have area. we'' re like, “Look, why don ' t we offer you my.
workplace upstairs?” We had a loft in our cabin. I'' m watching out the home window, people see my eyes.
increasing. Our cabin is literally right there. So, we determined, well, allow'' s give her my old.
workplace. It'' s a good large loft space. It'' s fantastic. And also we'' ll build a brand-new building, which is where.
I'' m at now. If you look behind me, this is now my creating workshop. As well as we constructed nearby to it.
a woodworking shop since I'' ve constantly desired to enter into woodworking. My better half'' s charity
,. we build totally free fencings for low-income family members that have pets on chains. Well, we also.
supply pet houses and we'' re battling to keep up with pet homes. I'' m like,” Hey, I.

like woodworking.Why wear'' t I build a woodworking shop? I can start making pet houses. That.
noises fun.” I had a passion in woodworking. And also we had the financial means to do it. .
I would say we'' re not underspending, we'' re not overspending, we ' re investing what we know we.
And also we have a system to regulate it. Casey Weade: That'' s excellent.
Becky on Facebook right currently. And also I assume it'' s a legitimate concern. She asked,” Just how can you tell. mid-year if you ' re overspending?” So, go ahead. Fritz Gilbert: Hey, Becky. I recognize Becky. She'' s
got. an excellent blog site, in fact. She just started one out. I wish it was something regarding 50.

Sorry,.
Becky, put your blog site name out there, we'' ll offer you some promotion. But.
yeah, Becky'' s a friend of mine. Yeah, primarily, Becky, what I can do by. that when I'' m doing the automated month-to-month transfers from Funding One, if there'' s cash. in our inspecting account, we ' re alright. If we obtain to the end of the month as well as we ' re beginning to. scrape low, we have a minimal kind of, we leave some cash therein, clearly, but we know if we.
get listed below X, hello, we sort of overspent this month. Mid-year, we kind of simply do it based.
on what'' s in the checking account. And all the transfers from Funding One are all automated,.
they simply move every month. Pension plan clearly is automated, streams each month. We understand that.
we can invest what'' s in the monitoring account. And also that type of becomes our month-to-month.
budget plan is just invest what's in checking. Casey Weade: So, you'' re actually watching on.
it from a month-to-month basis, not simply looking at it at the end of the year, we'' re taking a look at it. each and every single month to see if there'' s little excess or possibly not enough.And then, if

you'' re conserving. for a getaway or you'' re saving for a brand-new vehicle, exists a section of that'that ' s always establish. apart right into a cost savings for those one-off expenditures? Fritz Gilbert: Great factor, Casey. I built right into.
this thing and once again, I enter quite a bit a lot more detail than we will on this. What I do,.
every January, clearly, I fill up bucket one, I established the Resources One to run the monthly.
income. Well, what'' s great concerning Capital One is you can really establish up sub-accounts. So, we.
established up a sub-account under Resources One that'' s not component of my monthly income. As well as I saw an.
post, there'' s an actually excellent publication by the Wall surface Street Journal regarding retirement planning and also.
I'' ll get the name, it'' s over on my calendar. Basically, if you take a look at points,.
like you got to change a vehicle, you'' ve reached change an a/c, I live.
in Georgia, it'' s hot, you reached change a roof covering, you reached do home siding fixing on your.
home, those I call unforeseen yet anticipated, you'' re going to have those.
unexpected-expected costs.And so, what we do is if you consider an automobile, for example, let'' s claim. you ' re going to buy a car every pick a number 3 years to make the mathematics easy, allow ' s say it ' s. mosting likely to cost $30,000. that ' s $10,000 a year, high level, fail to remember that there ' s recurring worth,. I'' m simply utilizing this as a demo. That would certainly be $10,000 a year that you require to be intending on.
That'' s what? $800 a month. In January of the following year.
I'' ve got to include in that unexpected-expected budget, that amount. And also what it comes down.
to is $12,000 a year. If you look at all those points that you need, the car, the siding, look.
at an a/c, the length of time does it last? 15 years.What ' s

the cost? 5000. You do all that.
math and you damage down those major costs, which is all outlined because article, in our.
case, that came out to regarding $12,000 a year. So, every year in January, I pushed.
$ 12,000 into that sub-account and if I put on'' t spend anything, wonderful. The following. year, I ' ll placed an additional 12,000 in. The following year, I ' ll placed another 12,000 in.
At some factor, we'. reached acquire an automobile. Well, we ' ll have the cash sitting there in cash in that sub-account because.
we'' re essentially, budgeting for it annually, although it'' s a bumpy invest.
That ' s. exactly how we handle the unexpected-expected. And after that, during the training course of the year, if.
anything shows up that I type of figured out falls right into that type of classification, we just take out, out.
of that account.And once more, look at

January versus December, you can see exactly how much unexpected-expected. spending you had simply by deducting the finishing balance from the beginning equilibrium. It ' s a. actual easy means to take care of those one-off expenditures. Casey Weade: I like that, unexpected-expected. costs. This is something that we encounter with families we work with all. the time.
They'' ll come right into, well, suppose I need an automobile ?
What happens if I need brand-new air. conditioning device or brand-new roof? As well as will you spending plan for those things? I simply thought this is really,.
I indicate, what you simply spoke about, it'' s Budgeting 101. And this is people ask, well, exactly how does Dave.
Ramsey'' s program, Financial Tranquility University, just how does that suit retired life planning,.
that'' s more for individuals in the build-up phase? Well, a whole lot of it returns to budgeting. And.
often, we need to revisit those things if we sanctuary'' t taken an excellent search in a while. I put on'' t. intend to go also much down the budgeting bunny opening because there'' s a few other things I want to. make certain that we get to, yet I do intend to inquire about that item in your biography that states crucial.
to success after crossing the beginning line. Therefore, that obtained me thinking, what is the beginning.
line? Is the beginning line your retired life day? Does the beginning line occur six months.
can you operate in retired life? Well, I would certainly argue I'' m working now, but I love this stuff. This.
isn'' t job. To answer your question and also then, we'' ll get right into the ideology of it. To me,.
the beginning line is the day you retire. And the reason I call that is so lots of individuals believe.
of retired life is the end. I'' ve been working my entire occupation, I'' m ultimately done. It'' s not the. end, it ' s the beginning of a whole brand-new life. Retired life is a phase in life that differs from.
any since you were most likely 4 years old. No one'' s informing you what to do. You can entirely.
decide what you intend to make with your free time. You wear'' t need to go to function. Currently, with that said comes.
the challenge of locating what you'' re mosting likely to do self-driven. That brings you.
the joy in life. To me, the reason it'' s the retirement day
. is since that'' s the date that you quit working for someone else and also you begin.
doing whatever it is that you choose to do.And even if you choose to do a part-time work,.
Hey, the financials may be a good little side benefit, yet I.
because, hey, I desired to create a publication. Retirement is that time in life when you can.
when I leave job, I'' m losing my paycheck. Male, there'' s so much a lot more that you lose when you.
leave the workplace that people put on'' t believe regarding. You obtained the social interactions.You ' ve.

obtained the challenges, the deliverables. You got your purposes with your manager. You'' ve got. the presentations. You'' ve reached do whatever. Those sorts of things provide some meaning in your.
life, a feeling of success, etc. As well as I believe finding those points in retirement that can.
replace those non-financial components of work is a genuine sweet place. And also if you choose to do that.
through part-time work, that'' s fine. That ' s what you have actually picked to do in your retirement.
You ' re. still retired. So, yeah, the lines have blurred because a lot of individuals are doing part-time.
work. I would certainly say that my writing can be perceived as part-time job. I watch it totally.
various. I view it as absolutely volunteer. We'' re leaving following week.We ' re heading.
out to Seattle to assist our child relocate back to Alabama. I'' m taking a month off from. writing. I wear ' t have a boss. Sure, my visitors, yeah, I'create weekly, I ' ve been extremely. constant, however if I intend to take a month off, I can take a month off. That'' s a different type.
That'' s post-starting line job, it'' s. Casey Weade: It'' s voluntary job.
parallel below with marriage, you put on'' t have to continue to service your marital relationship, yet if you want. it to work out, you need to remain to deal with your marriage. And also you'' re not working for money,
. you ' re helping satisfaction and also a bigger life, which is a lot like retired life. You never ever quit. functioning, you'' re simply functioning for on your own now as well as you'' re working on yourself which never ever.
ends.Now, you publish you're beginning by line back a little bit as well as the original strategy.
was to retire in 2017, so why the delay? Fritz Gilbert: Yeah, the major factor on that,.
Casey, there were two primary factors. One, I had an uncle who retired most likely a little bit.
before he should have. And I went to a wedding as well as we were speaking around, I say, I'' m considering
. retiring possibly 5 years approximately. It was before I began the blog, it was rather escapes. As well as.
he gave me some suggestions that just permeated as well as it stuck with me. And also he primarily stated,.
” Look, Fritz,” he said, “when you'' re at that factor and you'' re near thinking about retirement,” he.
claimed, “simply actually see to it.” He said, “since you will certainly never ever change the revenue that you''
re. making in your top gaining years.No matter what you perform in retired life, you'' ll never come.
near to making that quantity of cash.” He stated, “so simply make certain since as soon as you walk away,.
you'' re leaving.” So, that stuck to me. The 2nd thing was I shared that advice.
with a pal of mine that was retiring a year before me and also he decided to.
wait an added year. And after that, in fact, he was going to retire 2 years prior to me. He.
waited a year and after that, he retired and also he told me, “So, Fritz, that was the finest guidance I ever before.
obtained.” He stated, “We have even more money than we need.There '

s zero financial anxiety in our.
life. I'' m so delighted I functioned that added year.” Hearing that from both of those.
individuals, our numbers stated we might do it, however I'' m traditional, I supported everything in.
I wear'' t hate my job. I'indicate, I ' m still only 54.
but when you obtain out of 55, if that added year absolutely does bring about much less anxiousness for the rest of.
my life, guy, that'' s a rather great compromise. So, I did work another year and now, looking.
back at it, 2 and a half years in, I feel the same method as my buddy did..
I'' m so thankful I functioned the additional year.We can build the workshop that I ' m. that ' s. I ' ll just be straightforward.
I wish we would have done that.” There ' s. absolutely nothing that enters your mind and also even when I ' m simply existing'in bed, whatever, thinking, composing,. whatever, there ' s absolutely nothing that I assume about that I have remorses over the procedure we went through.I. suggest, it ' s been that good of a change for us. Casey Weade: Were there any kind of

shocks? Fritz Gilbert: I put on ' t know that I would state. surprises. I have in fact been documenting, I called it the Retired life Truth series. And. I ' ve written like five or six blog posts in this Retired life Truth series, where I'discuss. what I ' m reasoning as I go via the different stages. Like I talked around previously,'if you ' re. 6 months prior to retired life, you can go right back in my timeline and also see where'I was.Well,.
I ' ve done the very same point blog post retirement after I ' ve went across the starting line and I simply

finished
.'one concerning the two-year mark as well as I believe most likely the greatest thing that I would claim is, I constantly.
kind of understood this thinking of what you intended to do and also discovering something that offers you. function.
I recognized that was crucial, however I wear ' t believe I actually valued just how important.
it was up until I really lived it myself. And also the truth that I ' ve got a lot satisfaction right currently,. I assume, demonstrates, I think, the worth of that.I assume the other point I consider when I hear.
that is possibly the absence of appreciation for exactly how large of a modification

it is for both individuals in the. relationship.
It ' s really, actually crucial to think around. I ' ve been assuming concerning
it. I made the shift.
I was writing. Well, what took place in my other half ' s situation was she was.
She lived with us for. It truly was kind of my spouse ' s.
She started this charity,. she ' s doing great, we ' re caring life.
There was, I would certainly claim, an extra challenging transition for. her due to the fact that we didn ' t recognize that caregiving was kind of the like a work and also we hadn ' t fully.
Casey Weade: Well, I wasn ' t going to go.
Fritz Gilbert: Yeah, I think what it is, Casey,.
both partners are mosting likely to an office everyday and instantly they ' re home working from. home, running into each other all day? Exactly how numerous of them have type of had. a difficult adjustment? Most likely a lot.It ' s no various with. retired life. I'll share a story, I put this in my book. I had a friend of mine.
who his spouse had actually been a stay-at-home mom, this'individual retired and also he was a guy who. his task was type of making points much better, he was a process-improvement person. He ‘d do any kind of. to analyze the method they ' re doing things and he would certainly make them
better. That was his mind,. that ' s what he ' d done for years.He'' s seeing his other half load the dishwashing machine. or something and he begins informing her exactly how she could do it better.I mean, it

' s classic.
tale, yet that'' s what occurs.'She ' s like, “Hey, I recognize I'fill a dishwashing machine, I ' ve been doing. for three decades.” He goes, “Yep. Sorry. “I assume you need to identify that going from one or both. spouses being in the office all day to all of a sudden both spouses being house.
constantly is a big, big change. As well as I believe, fortunately, among the important things we.
did as well as I really urge audiences, spectators to do this is, as you'' re thinking of the soft.
side because in 2015 or two that you'' re working, sort of reach an agreement with each other. Exactly how.
much time is going to be kind of we time, things that we do together? What do you want to do on.
your own? My partner delved pottery soon after we retired, all right, great.You ' ve each reached.'have those private points that you like to do and also you need to have the freedom to.
go do those without sensation guilty, without the other one getting mad at you. You'' ve got to type of have an arrangement, hi there,. alright. You put on'' t have to framework 10 hours a week, whatever. I like to head to the fitness center, I take spin.
courses, I function out every morning, that'' s kind of my time. My partner, she does her charity things.
which takes a whole lot of time. She suches as to paint, she'' s getting involved in some arts and also craft-type style,.
I have some time for my things.
things with each other. But type of chatting via that and acknowledging how huge an adjustment it'' s mosting likely to be. and also having a bit of recognizing going in, of how that'' s mosting likely to function, and also talk regularly.
when you retire and also you'' re going through those modifications, “Hey, don'' t inform
me exactly how to. lots recipes, I recognize just how to pack meals.” Having an open relationship, where you can type of be sincere concerning what'' s annoying you around.
the various other individual, guy, that matters much more in retirement than any type of other time since.
you'' re always together, as well as it ' s wonderful. Yet you'' ve reached be planned for exactly how large.
of an adjustment that is to a relationship.Casey Weade: Well, I '

ve been setting the 15.'Commitments of Conscious Management for some time now. And also one of things. that I took away from that book related to interaction with your spouse. Many individuals won ' t have these sorts of conversations of points that trouble him, the important things that.
aggravate him, that sort of hide those things. And after that, that in fact leads to.
Fritz Gilbert: That ' s real.
There ' s a balance there. Casey'Weade: There ' s a delicate balance.
There'' s possibly a lot more questions that we ever before had on marital relationship. We have inquiries that come from. Facebook, but we also have some inquiries that come from our weekend break visitors. So, for those of. you that subscribed to Weekend break Reading, you have an e-mail chance each and every single time prior to a.
And so, I'' ve got a couple. Shawn Peterson claims, I am currently 52.
years at 60. As a pair, my wife and also I were happily wed, recently ended up being empty nesters,.
appreciating some more time with each other. When I retire, I truly believe that we are both looking ahead.
to spending a lot more time taking a trip and also functioning on tasks together. Nevertheless, while I am still.
working away from house about 45 hrs a week, my other half also appreciates a substantial.
amount of time to herself. As we are anticipating retired life as well as.
evident issue of hers, I think is that I will certainly be hanging around a lot even more as well as intruding.
on her “me time,” my concerns are 2. So, one, exactly how big of an issue is this in the direction of.
keeping a delighted marital relationship? Phone number two, just how can I help alleviate her worries beforehand.
of retired life and also guarantee her that I will still appreciate her demand for personal room? Mark.
Linna tossed in there also on the exact same lines. He stated, exactly how do you take area when you.
and also your partner are currently with each other all the time retired life? So, you obtained 3 various.
And I ' ll add to it,. As well as I ' ve constantly been. I wear ' t.
since that ' s what the reader scenario is. You ' ve obtained your regimen as the individual, you ' re driving. to the office, you do your thing at the office, you drive residence.
Well, don ' t fall short to acknowledge. your better half has her regimen. She ' s been doing something for years, that ' s sort of her routine. My wife kind of has a flow to her day. She does certain things at certain times. She suches as to. read at specific times, whatever. And I think recognizing that and also recognizing it as well as talking. about it prior to you reach retirement is specifically what I was mentioning in our last little conversation,. that you ' ve obtained to realize that that ' s mosting likely to alter, but you can still carve out time for. both of you to do the important things that you wish to do, while likewise accommodating the fact that.
you ' re going to have a great deal even more time together.So, I assume it ' s a harmonizing act.
It ' s. not sort of a one-and-done discussion.

It ' s a continuous thing', yet I assume the. essential thing is to recognize that the modification is going to be just as huge. If.
you ' ve obtained a stay-at-home partner, the change is simply as huge for the stay-at-home. spouse as it is for the one leaving the work environment and put on ' t ever ignore how big of a change. that is. And also you just need to chat via it. Casey Weade: And also with this communication, normally, there ' s some negotiation or compromise in a. marital relationship and specifically around retired life, were you always on the very same web page with Jackie
?. Or were there some locations of concession? Fritz Gilbert: Well, I ' ll tell you. something we did.Well, first off, I would say, we believed we were constantly on the.
I can ' t remember the last time we had a battle, we ' re.
We had some rather great conversations via. that due to the fact that she said, I ' m checking out what you ' re doing and also you'' re having a blast, and also.
she was, I put on'' t recognize what I ' m intended to do. So, I believe having that openness in your.
As well as we spoke with it, I suggest, clearly, I''
ve.
you ' re mosting likely to enjoy it, you ' re going to be getting all that gratification.
As well as'the other. one may not have actually located their point yet. That held true with my better half and also I, I ‘d kind.
And also she saw a Facebook point, Mike Rowe, the Dirty Jobs guy. Oregon.
As well as my other half. saw that as well as she was, “You know what? We can do that right here.
I can do. that here. “Which was the spark. And also I believe the takeaway is, she saw that and. instead of simply view it and afterwards take place to the next point,
she took the initial step. And within. a couple months, she had a 501( c) (3) establish, she had a board of directors, she had financial,. she had an article workplace box, she was elevating money. We were building the fencing within 3. months of that very first time she saw the video clip and also it ' s blew up given that then.
As well as she is. absolutely loving it. She ' s discovered her thing.So, if something interests you, pursue it
. And if you see that your partner is struggling, you ' re discharged up, or I believe a whole lot of times, the. lady that talked with me at that retired life thing was worried since this individual was practically. a workaholic and he didn ' t have any outside rate of interests and she type of had her life. She. was doing her thing,
she was mosting likely to whatever she'was going to during the day, she. played tennis with other ladies, whatever. As well as she knew that this individual didn ' t type of have.
his thing yet. So, it all leads me to that exact same idea process of just how do you discover your purpose in.
retired life. And also if among you in the connection has found it as well as among you hasn ' t, it ' s.
possibly mosting likely to trigger some conflict.Casey Weade: Currently, I just have a concern. Whose. duty'is them? you located your own, your partner doesn ' t,

is it your responsibility. to assist? And if it is, to what degree? Fritz Gilbert: Well, you can go deep on marital relationship. counseling below, I think. To me, I look at it nearly like an addict. You can allow somebody,. You can ' t make them stop.
They ' ve obtained to desire to stop. To me, it ' s not unlike that. The only individual that
can find a purpose objective really works for them is.
As well as if they simply. don ' t want to do it, I put on ' t know what to inform you.
You can ' t pressure someone as well as you ' re. Casey Weade: That ' s great. Can you inform us a little bit regarding that?
We created the principle. We placed a cookie jar in our room. with a little poster thing alongside it as well as we kind of urged each other,” Hey, as soon as a. Week, come up with an activity that you ' d like to do.It can be something we ' ve done previously. preferably, possibly something we place ' t done before.
” It was neat due to the fact that I didn ' t understand what she. was placing in the jar, she didn ' t understand what I was placing in the container, but'each week,. we would each put a task in the container, the thinking being on the day we. retired', if we did one task a week, we would certainly have two years' well worth of tasks to. do once a week, half of which were driven by me, half of which were driven by her. , it ' s a cool idea for either one in the relationship to have equivalent influence. on what you ' re mosting likely to be doing in retirement.And I ' ll be straightforward, we ' ve gotten so busy at our. own retirement, we sanctuary ' t gotten anywhere near with two years' well worth of activities, I'mean,. not also close. I think the mental exercise of attempting to discover something every week is actually. excellent since I got on Google taking a look around things in our location and also things we hadn ' t done prior to and,.” Hey, Chattanooga is not too much.”” Well, I don't recognize Chattanooga yet.
“” Okay, we ' re going to invest. a weekend break at Chattanooga, put that in the container.” ', it makes both of you think concerning what. do you wish to perform in your extra time once you enter into retired life, whether or not.
you really do it or otherwise, surprisingly, probably isn ' t the factor.
I assume. the point is that you both have equal say as well as there ' s an equivalent chance that you ' ll. be doing something that either party selected,'so it exercised truly well
for us, but we ' ve. come nowhere near taking advantage of 100 products currently, probably 125 weeks in, we ' re no place. near tapping right into the hundred items, yet.We can ' t, everybody says you ' re as well busy in. retired life. We truly have actually found ourselves very hectic in retired life with
things that bring. satisfaction. And also if we have an open day, we ' ll grab something, we ' ll do it, but it ' s not. driving our retirement like we thought it might. Casey Weade: I just
see this. as a fantastic workout for any individual actually, at'any type of phase of life
. Also a single going right into retired life, I could see how this can assist uncover particular.
I believe the thing is, find a way to boost on your own to believe about.
what do you desire to do that you place ' t done.
It promotes curiosity. I ' ve got to place something in.
there each week, I ' m curious, what'can I locate to do around here? Anything you can do to cultivate.
your curiosity, make a bucket listing, whatever, anything like that that gets your mind reasoning.
about that post-retirement life, this goes back to our earlier statement.The more time you. spend believing about your post-retirement life, that ' s what this is. It ' s kind of a clever

means of.
doing it, yet what are you doing? You ' re assuming around,” Oh, what do I wish to do when I retire?”.
” Well, allow ' s go to Chattanooga for a week.” It ' s a creative way to believe curiously.
regarding things that you can do in your location. Casey Weade: I believe this is an excellent time to put.
a concern we had from one of our Weekend break Reading visitors. John Mueller asked, “What does a. regular week resemble in retired life?” I assume a lot more significantly, right here,. along these lines, he said,” Exist any continuing to be things left to do. on your bucket list you wish to share?” Fritz Gilbert: Yeah, I inform you what, I did a podcast a while ago as well as I resembled, well,. let me just tell you what I did yesterday.So, allow me simply attempt that currently. And also honestly, this was. not prepped, I don ' t
. so let me just inform you what I did the other day, I ' ll see if I can keep in mind. Okay. We headed out in the morning, nine o ' clock. Well, initially of all, I'stroll the dogs every early morning. . I
took the pet dogs out for a stroll'regarding a mile and a fifty percent. After that, my spouse and also I went as well as build a
. fencing, Liberty for Dog fence, for a pair hrs, came back after that, as well as I winterized my.
MOTOR HOME, which took a surprising amount of time and afterwards, afterwards, I worked a little.
little bit on my blog site and after that we had dinner together and we kicked back last evening, simply.
viewing TV, viewing a movie on Netflix.So, I assume what ' s fascinating is each day. is unchoreographed, what I discovered is adding a

bit of framework in the morning via.
All that to state, a little bit.
that to me, it functions far better to have a little of structure since that ' s one of things.
Fritz Gilbert: Definitely.
my hope is, there ' s still things on my pail list that I wear ' t. There ' s numerous, several points.
One, I think, for me'is, right now, we ' re. I ' ve always had an intrigue with New Zealand.We ' ve been to Europe a heap. Australia, as well as perhaps simply obtain like an Airbnb, stay in one area for like a month as well as actually.
It's possibly the one I would think around. From your reaction is to go to take a trip.
There ' s numerous locations in your life and also attempt to.
Attempt to come up with bucket checklist things on all those various. facets in your life.And I would state every one of those
facets of my life have container listing products. that I still have in mind that I would such as to do. Casey Weade: That ' s fantastic. Currently, you ' ve given. me a bit of research is to experience as well as I'see those elements of life being maybe.
values to like, these are the points you value, these are your worths, possibly it ' s spiritual,.
maybe it ' s individual growth, possibly it ' s household, but I enjoy the workout of returning as well as structure. a bucket'list out on every one of those various things. That ' s actually cool.
Currently, Fritz, we ' re. Do you have a hard quit because I ' d like
to.
Casey Weade: Awesome. Fritz Gilbert: I ' m retired. Casey Weade': Well, I seem like we ' d be remiss if. we didn ' t talk a little much more'regarding motor home travel.
It appears like there ' s these 2 camps. And also then, there ' s the contrary camp, this. It seems excellent, yet put on ' t go spend a boatload of money on it till.I imply, that'' s, I believe, where the negative comes. in, somebody heads out as well as invests 100 grand, gets a eighteen-wheeler, they'' re prepared, and afterwards they head out on.
their first trip, and they realize they despise it, where it beings in a car park whole lot 51 weeks out of.
the year.That '

s where the unfavorable originates from. In our case, we'' ve always camped.
When our. daughter was young, in fact both my better half as well as I, when we were youngsters, paradoxically, our households.
camped, so we'' ve always camped. And when our daughter was maturing, outdoor camping was really.
crucial to us. Presume what? You'' re working, so you can only do a weekend trip below as well as there,.
maybe take a week off, perhaps if you'' re actually lucky, you get 2 weeks off, however we knew.
in retired life, that'' s all mosting likely to transform. So, we already recognized we had.
the love of outdoor camping. So, we constructed it into our budget plan. We spoke concerning that.
post-retirement costs as well as we made sure that we had the money established aside.That ' s

red light number.
one is don'' t think you ' re going to obtain into RVing if you sanctuary ' t built in the procurement costs. into your retirement strategy. Don ' t go out on the day you retire as well as spend 100 grand, obtaining.
That'' s.
The very first year due to the fact that my mother-in-law was still to life so we didn'' t wish to. be as well away. So, we simply did quick weekend break trips within an hour to house, appreciated.
it, was familiar with the camper, great.Last year, we took a three-month trip and we drove. out to Seattle, our child
was out there. So, we invested the summer season in the Pacific Northwest..
It was terrific, took a month going out there. We stayed out there a month, took a.
month returning. Fantastic trip. This year with COVID, every little thing else going.
on, we took sort of an intermediate trip. We increased around Michigan'' s Upper Peninsula, we.
took a month.The delight of RVing

is that it is so versatile. You can do a three-month cross-country.
journey, you can live full-time if you desire to. Or you can simply do a weekend break trip close to residence. I.
and rent out one. There are locations you can rent out a recreational vehicle, go lease them for a week, make certain it'' s. something you really think you'' re mosting likely to enjoy before you sink the cash right into it, however.
it'' s a terrific aspect of our retirement, we enjoy it. Casey Weade: You stated construct it into your budget plan,.
that'' s one of the most essential aspect.And this is why I received a lot unfavorable press, if.
you will, is that people have lost a great deal of cash doing it since they made inadequate decisions.
as well as develop it into their spending plan suitably. Exactly how do you go about constructing it.
right into your budget? What are some points to watch out for? What do individuals typically forget? Fritz Gilbert: Yeah, I presume, the way that.
we did it, you speak with a great deal more individuals that are preparing for retirement than I do,.
however I can share how we did it. And also primarily, I knew that on day one of retired life, I desired.
We ' ve.
If we'' re going to purchase a truck as well as purchase a 5th wheel, we need to make.
sure we have the cash money allot for that, to ensure that we'' re not interfering with that three.
years' cash money cushion at the start. So, essentially, I just did a time series. Generally,.
I conserved my bonus offers, we took some of our 401k cost savings and redirected it into after-tax so be.
liquid, points like that. We offered your house, we had a large residence in the city, we sold that,.
took the house equity, and utilized several of that. Primarily, I just did the mathematics and claimed,.
” Okay, below'' s just how much we need on day one.Here ' s the revenue I expect to be able to load that bucket.
with, just how much do we have leftover?” And also that kind of identified the allocate just how much we can.
invest in the recreational vehicle. That'' s the way we did it. Casey Weade: What about on a recurring.
basis, I mean, maintenance gas, is it rather typical? Are the.
points to look out for there? Fritz Gilbert: I imply, what I did when we did.
this 11 months of tracking our spending and afterwards we mosted likely to a post-retirement visitor, I basically.
factored in a travel line as well as I stated, fine, allow'' s say we spent 100 days a year camping,.
I had no idea what we were mosting likely to do, however I figured it would certainly be probably less.
than that.But allow ' s

prepare for, once more, traditional budgeting. We did 100 nights.
a year at like $35 a night and also we claimed, alright, just how many miles do we assume we'll drive?.
Okay, 10,000 miles, allow ' s claim 10 miles a gallon because you ' re. How much fuel is that?
detail in my thinking when we went from our existing costs to our projected spending.
as well as whatever that estimation appeared to be, we threw that in there and when we were attempting.
to establish, do we have enough money to retire that spending, not only to consist of the $2500.
a month to medical insurance we discussed, but it included whatever that computation was.
for motor home travel.So, yeah, we did aspect it in. And also it'' s in that number that we set up with.
these regular monthly transfers right into our examining account. Casey Weade: As Well As you'' re able to do a great deal of.
these points, I think, since you moved and also fix me if I'' m incorrect, you discussed this term.
geoarbitrage and I'' d like you to show to us just what it resembled in a downsizing, why.
you selected Georgia as well as what'' s geoarbitrage? Fritz Gilbert: Yeah, essentially, in summary,. geoarbitrage is moving from a greater cost place to a lower price place, which permits.
you to invest less money and also still appreciate life. And also what we found, Casey, we had a big house,.
suburbs of Atlanta. Yeah, it's fine, we'' re elevating our child, we had my mother-in-law coping with.
us. It was nice to have the space yet by the time you'' re empty nesters, you obtained half your home.
resting empty.I mean, it ' s got furniture in it, however when'' s the last time you went right into your formal.
resting space or whatever individuals have these days? You probably, if you have a huge residence, you have a.
great deal of rooms that you wear'' t use, however you ' re paying for them, you obtained to heat them, you obtained to cool.
them, you got to pay tax obligations on the square video footage. What we discovered by relocating, we had a weekend break.
cabin up in the hills that we leased for perhaps 7 or eight years before I retired.
as well as we turned up below on weekends, we appreciated it, we just loved the area. However what we.
located now, we possibly have 2000 square feet, it'' s ideal, it ' s comfy. We got a little.
bit tight on the workplace room so we included this thing out here. So, I'' d have my workplace creating.
We wear ' t.
the appropriate impact of what we require. So, what does that enabled us to do? It'' s allowed. us to minimize our home tax obligations. We moved out of a more expensive location. It reduces energy.
expenses. The knock-on results of downsizing, it'' s significant.The home

.
tax obligation alone is a large problem. Why Georgia? Key reason we picked Georgia is.
we already lived in Georgia. Georgia recently recognized the significance of obtaining the.
tax structure right to bring in retired people. They'' re not ranked if you look at a.
lot of the Kiplinger'' s or whoever does the state'' s attractiveness for retirees..
Georgia generally prices quite very in terms of what earnings they tax and.
don'' t tax senior citizens. So, their tax, I'' d claim, maybe not the'finest, however they
' re. respectable. So,'it ' s a tax obligation favorable area. And we much like it. We'' re in the mountains.
We got an attractive lake a mile away.
treking trails everywhere. I think the most vital point is it just fit our lifestyle.
and what we wished to perform in retirement. Casey Weade: Well, you'' re definitely.
Fritz Gilbert: That's it. Casey Weade: I know you delight in that.
if you didn'' t catch that podcast, where we dove into that article, please return as well as pay attention.
to that, I think you'' ll actually take advantage of it. I'' m wishing that I reach have the.
Casey Weade: Insects have to do with. We ' ll just tease that one.
Casey Weade: We ' ve got an entire box of Keys to a. Effective Retired life, a recap of the 24 secrets that Fritz ' s identified as well as experienced in his. You can go to retirewithpurpose.com, click on the.
That ' s exactly how we get discovered. And also. that ' s additionally how you obtain a complimentary copy of Fritz ' s publication,
Keys'to a Successful Retirement. Fritz, thanks a lot for joining us here as well as once more, I hope we reach return as well as talk. concerning ants and also grasshoppers in the future. Fritz Gilbert: Oh, Casey, thank you quite.
Certainly, we see things really similar. Casey Weade: Awesome. Fritz, up until next time.
Fritz'Gilbert: Okay, thank you, Casey.

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Retirement Planning: Should I Keep My Retirement Money In the Market While it’s Crashing?

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Factors That Can Reduce Retirement Income

There are many different factors that can reduce retirement income. The first may be fairly obvious, but it's the effect of death. For two spouses when there's a pension involved, the death of a spouse could mean the loss of a pension income. Now if there's a survivor benefit, that income may continue, so it's important to evaluate your options when making pension decisions. A lot of people use insurance to protect against this type of income loss. Another way death can reduce retirement income has to do with Social Security. When two spouses are receiving Social Security and one spouse passes there will be a loss of one of the benefits. Now, the surviving spouse will receive the higher of the two benefits, but there still will be some loss of income. The final way that death can reduce retirement income has to do with taxes. Moving from married filing jointly to now filing single can push the survivor into a higher income tax brackets. The reason for this is that the income thresholds for married filers is about twice what it is for single filers. This can have a major impact on the surviving spouse's net after tax income in retirement.

Taxes in general is another area that a lot of people overlook when it comes to retirement income. The reality is that taxes will take much more from you than the market ever can. For instance, going back to 2008 during the Great Recession, the average portfolio might have declined 20 to 30 percent, assuming it was well diversified, of course. That might have taken a couple of years to recover, but taxes in retirement can easily cost anywhere from 30 to 40 percent. And that's money that will never come back. So it's really important to consider where your different sources of income are coming from in retirement. Would it all come from pensions, Social Security, IRAs, 401(k)s, sources that will be taxed at ordinary income rates? Or do you have good tax diversification where you can choose from pulling money from maybe a Roth IRA raise or non-qualified accounts and really get a lot of control over your taxes in retirement? And finally, inflation. Inflation is absolutely something that can reduce your income in retirement. And it does this by reducing the purchasing power of your dollar in retirement.

Inflation isn't just something that happened in the past – things will continue to cost more in the future. So let's look back 30 years. 30 years is about the average timeframe for most people in retirement. So in 1989, the average cost of a first class postage stamp was twenty five cents. Today that same stamp will cost you fifty five cents. Also in 1989 the average cost of a new car was $15,000. Today the price of a new car will set you back on average $37,000. So you need to look at how well your different sources of income will keep up with inflation during retirement. For help optimizing your retirement income, visit us at PureFinancial.com. .

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