#96 - How to Evaluate When to Take Your Pension

Hello, it’s Roger again, and welcome, welcome, WELCOME to this episode of the Retirement Answer Man. I’m so happy you’ve joined me! In this edition we’re going to talk about lots of great things that you can learn to help you understand and navigate the time of life we call “retirement” and I’m going to do with a bit of humor and make it fun (I hope). But before we get into all of that make sure you listen carefully for the information about my upcoming “Retirement Plan Live.” It’s where I take someone through their very own, situation-specific, retirement planning session, episode after episode of this podcast. This year, I’m adding lots of bells and whistles to the project so make sure you listen in to get all the details on how you can be involved in the most beneficial way. Do you know when it’s time to begin withdrawing your pension?  It’s not a real intuitive decision to make, so I don’t blame you if you’re a bit confused about it. One of my listeners asked my advice about that issue, and I don’t give financial advice on this show, but I did tell him some mindsets and considerations that would be wise for him to ponder if he’s going to be making a decision about his pension. There’s a lot to consider - much more than you’d think on the surface, so you have to take it slowly and carefully. On this episode I’m sharing those considerations and mindsets about withdrawing a pension, so I hope what I share with this listener will also be helpful to you! Rebalancing: A financial term you hear, but what exactly is it?  Most financial professionals use the term “rebalancing” so regularly it’s like they’re talking about something you do to the tires on your car. But when it comes to financial planning, rebalancing is a very important concept that has to do with how your portfolio is divided, and how you keep it arranged over time. On this episode of The Retirement Answer Man I spend a considerable chunk of time walking you through the basics of rebalancing, why it’s important to you, and provide a handful of things you need to be aware of that will affect your decisions about rebalancing your investment portfolio. I think you’ll get a lot out of this segment. What’s the emotional component of the financial decisions you make?  Did you even know there’s an emotional component? There is, almost always. For example, in the discussion I have regarding rebalancing I demonstrate how looking at your returns, you will no doubt see that the very things listed that make you excited (your assets that are performing nicely) may be the very things you have to sell in order to keep your portfolio balanced. But your emotions will get involved and try to talk you out of the wisely and carefully considered decision you made at the outset about the balance levels you wanted to keep. How do you handle that emotional component? I’m glad you asked, because I tell you on this episode! What’s the impact of a simple smile?  Smiling doesn’t directly relate to retirement planning, unless you’ve got some kind of windfall that made you happy for the moment, but smiling does have a lot to do with overall happiness. Research is showing that the physical act of smiling releases certain “happy” chemicals in the brain that enable you to actually feel happy as you look happy. I’ve been thinking about the happiness level of my life and wanted to address this issue, simply because if I’m not smiling, I’ve been told that I look like I’m kind of ticked off. Give the “Be Happy” segment of today’s show. I think it will make you happy. :) OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN  [0:29] Welcome to the episode.[1:01] The Retirement Plan Live begins next month![1:40] Get updated information, resources, and video from Roger for the ongoing Retirement Plan Live! HOT TOPIC SEGMENT [3:39] ROGER MADE A MISTAKE![4:07] When should someone withdraw their pension? JARGON TALK SEGMENT  [8:56] What does “rebalancing” mean? It has to do with asset allocation![10:50] Why should be concerned about rebalancing?[12:37] An example to consider.[15:36] Considerations surrounding rebalancing.  PRACTICAL PLANNING SEGMENT [ 20:36] Carl shares his experience, 1 year after his participation in the first Retirement Plan Live event, last year. TODAY’S SMART SPRINT SEGMENT [33:28] The challenge to you this week: track every penny you spend for 7 days.  THE “BE HAPPY” SEGMENT [35:01] The “neutral face” and how you should adjust it, a bit. RESOURCES MENTIONED IN THIS EPISODE  www.RogerWhitney.com/RPL - sign up to be considered for Retirement Plan LIVE Contact Roger: http://www.rogerwhitney.com/retirementanswers/ Roger’s retirement learning center: www.RogerWhitney.com/learn The Retirement Answer Man Facebook page: www.Facebook.com/RetirementAnswerMan www.FreeErisa.org - get from 5500 on your company pension www.PensionRights.org - Learn how to read form 5500