In this New Retirement Podcast episode, host Steve Chen and guest Dr. Jordan Hutchison, Vice President of Technology for RFG Advisory, delve into the evolving landscape of financial planning. They discuss the impact of technology on accessibility, the rise of flat fee planning models, and the importance of understanding client psychology. Jordan also highlights the challenges in educating the next generation of financial planners and shares insights on the role of financial advisors in fostering client relationships. The conversation concludes with a discussion on flow theory and its applicati ..read more

Consumption smoothing is a financial planning concept developed and tested by economists. It refers to the somewhat aspirational idea that people strive to maintain a relatively stable and predictable standard of living over their lifetime through all phases of life. What is Consumption Smoothing? At its core, consumption smoothing refers to the practice of maintaining a consistent level of spending or consumption over time, regardless of fluctuations in income or other financial resources. This strategy aims to cushion the impact of income volatility, unexpected expenses, or economic downturn ..read more

The best retirement investments depend entirely on you and your goals. Don’t dive into anything or let anyone tell you how to invest unless they understand how much money you have and what your goals are for that money, including when and how you want and need to spend it. You have so many options that could be defined as the best investments for retirement. Start by Defining Your Goals and Target Asset Allocation Set Investment Goals Contrary to popular belief, there is not one best retirement investment. Not all retirees are golf playing grey-haired 64 year olds. And, not everyone has the s ..read more

Terror about retirement spending is not uncommon. In fact, most people are worried about spending their nest egg and running out of money. After all, you have been conditioned for decades to earn, not spend. You were probably a teenager when you opened your first paycheck and officially started the cycle of earning and spending your own money. Since then, the following process has never stopped: Work. Earn money. Spend some. Save some (hopefully)… Repeat. And now, just because you are ready to retire, you are forced to adjust to an entirely different system. Suddenly, it’s supposed to seem to ..read more

It is highly likely that you have considered saving (or converting existing savings) into a Roth IRA or 401k. Someone, a friend, family member, advisor, your bank, or colleague may have recommended it to you. And, you have most certainly seen, if not read, an article about the benefits of Roth. All retirement savings accounts are designed to help you save money on taxes. And, Roths can be a particularly great way to reduce your tax burden. What’s a Roth?: A Roth is a retirement savings account. With a Roth, you pay taxes on the money you contribute to the account. The trade offs (and reasons ..read more

Life can pass quickly when you are occupied with work, family matters, and the never-ending to-do list. Before you know it, your retirement years have arrived sooner than expected. No matter your age, you should take time to reflect on what a fulfilling retired life means to you?  Many people simply say “I want $1 million or $2 million by retirement.” However, unless you envision your life without work and what that entails, the dollar amount you cite likely has little rationale and meaning behind it. As you approach retirement, consider asking yourself these seven  questions so you ..read more

Setting long-term financial goals is really important. However, the most important long- and short-term financial goal actually has nothing to do with money. Before determining when you can retire and how much you need, you really ought to know exactly what you want to do with your life. What is your vision for your future, starting right now? Why a Vision for Your Life is So Important to Your Long-Term Financial Goals What is the point of saving a certain amount or retiring on a specific date? And, how do you even know how much you need to save or when you should retire if you don’t have a vi ..read more

Spring is here! Or if you’re in a city like Pittsburgh, where I am, you may also have some Winter and Summer sprinkled in throughout the week as well. Anyway, it’s likely you’ve begun tackling spring cleaning tasks, such as organizing the closets, washing the windows, and detailing your car, among other “enjoyable” household chores.  It’s also the perfect time to give your finances a thorough review and refresh as well. As the seasons change, taking the time to revisit and reassess your financial goals, opportunities, and strategies can give you confidence in your financial future.  ..read more

Early retirement – retiring at 62 or before – seems like a wonderful dream to a lot of people. You’ve been in the workforce for decades. You have focused on work with the goal of enjoying the rest of your life on your own terms. But is it too early to get out of the rat race?  Retiring at age 62 is quite a bit different (good and bad) from retiring later. If you’re wondering whether it’s the right thing for you to do, this article is not intended to slow you down. Is it time to walk away from work and into retirement? Below are 12 reasons why you really should go ahead and retire at 62 o ..read more

As you prepare for retirement, it’s essential to understand what your taxes will be. You may think your Social Security benefits are tax-free. After all, why would the government pay you money with one hand and take it back with the other? But the truth is, you may pay taxes on your Social Security benefits if you have other sources of income in retirement.  At a certain level of overall income – that includes your Social Security benefits, paid work, withdrawals from investments, passive income or other sources – your Social Security benefits are taxed. And, if you work before full reti ..read more