WEBVTT
1
00:00:31.660 --> 00:00:43.390
Jonathan Shenkman: Good morning, and welcome to the Park Bridge Wealth Management Winter Webinar Series. This program is entitled Retirement 2.0, Real Retirement Planning Strategies and Considerations for 2026.
2
00:00:43.390 --> 00:00:53.660
Jonathan Shenkman: As always, my name is Jonathan Shankman, I'm the President, Chief Investment Officer of Park Bridge Wealth Management, and in that role, I serve in a fiduciary capacity to help my clients achieve their financial objectives.
3
00:00:53.780 --> 00:01:05.049
Jonathan Shenkman: My practice focuses on working with high net worth families, businesses, and not-for-profits. I manage individual investment portfolios, trust accounts, corporate retirement plans, and endowments to help my clients achieve their financial goals.
4
00:01:05.050 --> 00:01:20.350
Jonathan Shenkman: In addition to the 20 or so events I run every year, I also do a fair amount of writing on the topics of investing and financial planning, and you can read my work in a variety of periodicals, including Barron's, Forbes, The Wall Street Journal, and Trust and Estates Magazine, to name just a few.
5
00:01:20.410 --> 00:01:34.650
Jonathan Shenkman: You can see all my work on my website at parkbridgewealth.com forward slash articles, or by following me on social media at JonathanOnMoney. Additionally, you can check out my weekly podcast, which is also called Jonathan on Money, wherever you get your podcasts.
6
00:01:34.720 --> 00:01:37.829
Jonathan Shenkman: Alright, with that, let's jump into the program. So…
7
00:01:38.090 --> 00:01:42.769
Jonathan Shenkman: when I work with people approaching retirement, I often find myself repeating the same line
8
00:01:42.790 --> 00:01:51.460
Jonathan Shenkman: Which is, this is not your father or grandfather's retirement. People are living longer, family dynamics look different, and the challenges
9
00:01:51.460 --> 00:02:08.779
Jonathan Shenkman: Facing retirees today bear little resemblance to those of 20 or 30 years ago. Yet many investors still anchor their expectations to what they saw their parents do. There is certainly value in learning from previous generations, but it is equally important to recognize
10
00:02:08.780 --> 00:02:13.270
Jonathan Shenkman: how much has changed. This includes longevity, lifestyle, work patterns.
11
00:02:13.280 --> 00:02:26.769
Jonathan Shenkman: And the investment environment are all different. The days of buying a triple tax-free municipal bond yielding 9%, then collecting a few years' worth of Social Security and dropping dead before 70 are long gone for many retirees.
12
00:02:26.930 --> 00:02:44.199
Jonathan Shenkman: Anyone nearing retirement today needs realistic expectations and a strategy grounded in today's reality, not yesterday's. And that's the focus of today's program. I want to talk about real-world planning ideas and the right perspective for retirees in 2026 and beyond.
13
00:02:44.310 --> 00:03:04.149
Jonathan Shenkman: So one common concern among folks in their 60s is determining the right time to retire. Before handing in your resignation letter, it's important to first consider these core aspects of a successful retirement, and I call this your retirement readiness checklist. The first item on this list is to wipe out all your debt.
14
00:03:04.150 --> 00:03:07.990
Jonathan Shenkman: Debt can be a useful tool in many aspects of life, like buying a home.
15
00:03:07.990 --> 00:03:24.429
Jonathan Shenkman: affording a car, growing your business. As long as a person acts responsibly and has a long runway to pay back that loan, it can enhance their life and take their career, potentially, to the next level. However, as folks enter their retirement years, many shift to living on a fixed income.
16
00:03:24.430 --> 00:03:37.400
Jonathan Shenkman: Being saddled with debt and its associated extra expenses can be burdensome and make retirement life much more stressful. That's why I advise all retirees to eliminate all debt before retirement, and that includes your mortgage.
17
00:03:37.560 --> 00:03:52.629
Jonathan Shenkman: Next, be sure to tackle all known big-ticket expenses before you retire. This includes major home repairs, car replacements, or lifestyle upgrades so you can pay for them from income while you're working, rather than withdrawing down your portfolio early.
18
00:03:52.630 --> 00:03:59.860
Jonathan Shenkman: Also, assess your income sources and expenses. Creating a budget for a multi-decade retirement is not practical.
19
00:03:59.900 --> 00:04:05.020
Jonathan Shenkman: Prices change, unforeseen expenses arise, and life takes unpredictable turns.
20
00:04:05.150 --> 00:04:23.289
Jonathan Shenkman: However, there needs to be a general calculation to determine if you can afford a particular lifestyle. This computation doesn't need to involve anything fancy. Start by just listing your income sources, such as Social Security, maybe a pension, portfolio, rental income, and next, tally your living expenses, like food, rent, taxes, and transportation costs.
21
00:04:23.290 --> 00:04:29.820
Jonathan Shenkman: Make sure to also factor in any other costs associated with living the retirement you envision, including travel or hobbies.
22
00:04:29.820 --> 00:04:38.539
Jonathan Shenkman: Finally, ask yourself just two questions. One, does my income exceed my expenses? And two, can I afford to live this lifestyle for the rest of my life?
23
00:04:38.570 --> 00:04:45.040
Jonathan Shenkman: If the answer to either of these questions is no, then changes must be made. You can consider working longer, even part-time.
24
00:04:45.250 --> 00:04:59.820
Jonathan Shenkman: Moving to a cheaper locale, which is popular, or adjusting your retirement lifestyle. And next is to simplify your financial life. Keeping your finances consolidated and organized is always sensible. This is even more important as you age.
25
00:04:59.820 --> 00:05:09.280
Jonathan Shenkman: As a youngster, you may be able to more easily track your multitude of accounts at various brokerage firms. This will become increasingly more cumbersome.
26
00:05:09.470 --> 00:05:24.630
Jonathan Shenkman: and stressful as you get older. I suggest to all my clients approaching retirement to consolidate their accounts wherever possible. This includes rolling over old 401Ks, consolidating various IRAs and taxable accounts where appropriate, and managing all checking out one institution.
27
00:05:24.630 --> 00:05:36.109
Jonathan Shenkman: Furthermore, having a seamless process for a child or trusted family member to make decisions on your accounts in case you no longer have capacity will save a lot of heartache and frustration later.
28
00:05:36.530 --> 00:05:49.540
Jonathan Shenkman: Now let's discuss some more technical planning ideas in the years leading up to retirement. Let's start with the impact of Secure Act 2.0. First, it increased the age at which requirement and distributions, or RMDs, must begin.
29
00:05:49.540 --> 00:06:03.009
Jonathan Shenkman: The starting age grows from 72 to 73 in 2023, and will rise again to 75 for those born in 1960 or later, allowing more years of tax-deferred growth. These data points should factor into your withdrawal strategy.
30
00:06:03.010 --> 00:06:05.940
Jonathan Shenkman: Second, catch-up contribution rules were enhanced.
31
00:06:05.940 --> 00:06:15.689
Jonathan Shenkman: Investors who are over age 50 can now contribute an additional $1100 to an IRA in 2026 for a total contribution of $8,600.
32
00:06:15.710 --> 00:06:40.319
Jonathan Shenkman: If you're contributing to a company retirement plan, you could plow in $32,500 if you're over age 50. People who are between the ages of 60 and 63 can make super catch-up contributions to their 401Ks for a total, in 2026, contribution of $34,750. Keep in mind, though, that a high-income earner's catch-up contributions must go into raw 401Ks rather than traditional
33
00:06:40.320 --> 00:06:42.610
Jonathan Shenkman: tax-deferred 401K starting this year.
34
00:06:42.660 --> 00:06:54.980
Jonathan Shenkman: I highlight all these points because these additional contributions can add up in retirement, especially for people who didn't start saving until later in their career, so take advantage of these higher limits.
35
00:06:55.140 --> 00:07:15.039
Jonathan Shenkman: Next, in the years leading up to retirement, it's more important than ever to set up a sensible investment program. At a minimum, all soon-to-be retirees should implement the following strategies within their investment program, regardless of their level of wealth, in order to achieve their goals and mitigate risk. First, implement the content.
36
00:07:15.040 --> 00:07:32.769
Jonathan Shenkman: A bond tense is a strategy that puts a few years of expense money into high-quality short-term bonds or cash equivalents to help prepare for retirement. This approach aims to reduce risk from market downturns that may be devastating while an investor begins withdrawing money from their portfolio.
37
00:07:33.400 --> 00:07:51.410
Jonathan Shenkman: Next, please diversify. The market moves in cycles. No one knows what asset class will outperform and which will plummet in value. This is why spreading your investments into multiple areas of the market is always prudent, especially when you're no longer earning an income to replenish your nest egg.
38
00:07:51.560 --> 00:08:07.540
Jonathan Shenkman: Also, be sure to maintain an allocation of equities. In today's world, it is common for retirees to experience a multi-decade retirement. In order to maintain one's standard of living while minimizing the probability of outliving one's funds, having exposure to stocks is imperative.
39
00:08:07.750 --> 00:08:22.110
Jonathan Shenkman: Gone are the days when folks put their entire portfolio of municipal bonds and lived off the interest payments. The market has changed, and so has longevity expectations. Utilize stocks to plan accordingly. And finally, be sure to avoid chasing yield.
40
00:08:22.170 --> 00:08:36.520
Jonathan Shenkman: Keep in mind that risk and return are inextricably linked. If an investment has a high yield, it means it is risky, and piling into only high-yielding investments can blow up your portfolio, make it stagnant for years. We're seeing this right now with the private credit market.
41
00:08:36.520 --> 00:08:55.810
Jonathan Shenkman: Instead, I urge investors that are in retirement to pursue a total return approach to generate portfolio income where they can rely on dividends, interest, and capital appreciation. This strategy has the highest probability of allowing folks to achieve their goals, not run out of money, while also managing risk.
42
00:08:56.040 --> 00:09:12.009
Jonathan Shenkman: Another point, which I alluded to, is to figure out your safe withdrawal rate. A safe withdrawal rate is the percentage that retirees can withdraw from their accounts each year without running out of money before reaching the end of their lives. This is a key aspect in determining how long you can maintain your lifestyle.
43
00:09:12.010 --> 00:09:29.609
Jonathan Shenkman: A popular guideline is the 4% rule, which suggests that an individual can withdraw 4% of their total portfolio value annually to sustain their lifestyle without running out of money. When determining your safe withdrawal rate, it's important to keep in mind your legacy goals and how it impacts your retirement goals.
44
00:09:29.610 --> 00:09:41.360
Jonathan Shenkman: Your legacy goals involve estate planning and how much money you'd like to leave to your children or charity, potentially. This objective will directly impact how much money you can withdraw each year from your nest egg.
45
00:09:41.590 --> 00:09:45.230
Jonathan Shenkman: Next, consideration are Roth conversion strategies.
46
00:09:45.380 --> 00:09:48.159
Jonathan Shenkman: Roth convergence often focus
47
00:09:48.230 --> 00:09:58.760
Jonathan Shenkman: on filling lower marginal tax brackets in years when income is temporarily reduced, such as early retirement. By converting just enough each year to top off a favorable bracket.
48
00:09:58.780 --> 00:10:17.919
Jonathan Shenkman: Investors can control lifetime tax liability. Carefully planning is essential to avoid triggering higher Medicare Part B and Part D premiums, which are based on modified adjusted gross income. Conversions can also reduce future RMDs by shrinking traditional IRA balances, improving long-term tax flexibility.
49
00:10:18.200 --> 00:10:26.910
Jonathan Shenkman: A disciplined, multi-year approach rather than a large single conversion typically produces better tax moving and risk management.
50
00:10:27.000 --> 00:10:36.089
Jonathan Shenkman: But here's the most important point about Roth conversions, which is while they're useful to some, they should be a low priority item for most retirees. Paying off your debt.
51
00:10:36.090 --> 00:10:56.349
Jonathan Shenkman: Consolidating your investments, downsizing, maintaining a safe withdrawal rate, a proper investment allocation, and so many other items are far more important than Roth conversions. Some tax professionals on this call may find this triggering, and I know I'm going to get angry emails, but it's absolutely the truth. Stay focused on the high-priority items.
52
00:10:56.680 --> 00:11:06.609
Jonathan Shenkman: It's also imperative to determine your social security claiming strategy. Social Security is a crucial income source for many retired Americans, especially as we live longer.
53
00:11:06.690 --> 00:11:31.179
Jonathan Shenkman: Getting it right is a critical for a successful retirement for many. If you're in good health and don't currently need the cash flow, holding off on claiming Social Security is a smart strategy to mitigate the impact of inflation. Today, full retirement age, or FRA, as it's called, for a retiree to get their full benefit ranges from 66 to 67, depending on the year you were born. One can claim Social Security as early as age 62,
54
00:11:31.220 --> 00:11:35.840
Jonathan Shenkman: But anything before FRA comes with a reduction in benefits of up to 30%.
55
00:11:35.840 --> 00:11:56.580
Jonathan Shenkman: Conversely, Social Security will add an additional 8% delayed retirement credit to your monthly payout for each year up until age 70 that you hold off on claiming benefits. That's a guaranteed annual return of 8% for deferral after your FRA. This could be immensely helpful during the later years of retirement as inflation and healthcare costs rise.
56
00:11:57.090 --> 00:12:16.569
Jonathan Shenkman: Also, consider Medicare and Medigap deadlines. Medicare is a federal health insurance program that can provide coverage beginning as early as the first day of the month in which you turn 65, and at age 64 and 9 months, you have a 7-month initial Medicare sign-up window, and if you miss this window, you may have to pay higher premiums for the rest of your life. An exception
57
00:12:16.570 --> 00:12:33.469
Jonathan Shenkman: is if you still have medical insurance through your or your spouse employer. In that case, you can postpone enrolling in Medicare until that coverage ends without having to pay higher premiums later. Now, let's turn to Medigap, which is Medicare Supplemental Insurance, which is a private insurance that covers some of the out-of-pocket costs
58
00:12:33.470 --> 00:12:41.289
Jonathan Shenkman: not covered by Medicare. There's a 6-month enrollment window up for Medigap that begins on the first day of the month in which you turn 65.
59
00:12:41.290 --> 00:13:01.270
Jonathan Shenkman: During this enrollment period, you can't be denied Medigap coverage or charge extra because of poor health. However, if you miss the enrollment deadline, you may pay higher premiums for life, or even be denied coverage. Lastly, and very importantly, healthcare planning. As I mentioned, healthcare planning requires precise Medicare enrollment to avoid penalties.
60
00:13:01.270 --> 00:13:10.550
Jonathan Shenkman: proactive management of IRMA income thresholds to control premium surcharges. It also requires evaluating long-term care funding options.
61
00:13:10.620 --> 00:13:14.639
Jonathan Shenkman: and maximizing HSA contributions and tax-free withdrawals.
62
00:13:14.850 --> 00:13:28.100
Jonathan Shenkman: Each one of these topics can be covered at length, especially long-term care planning. The one thing I'll say on this point is that it's important to be proactive and discuss each item with your financial advisor in the years leading up to retirement.
63
00:13:28.100 --> 00:13:43.710
Jonathan Shenkman: Based on your level of wealth, certain areas will require more or less planning. For example, if you have an 8-figure portfolio, then IRMA income thresholds and a long-term care cost are less impactful, versus many other families who have less resources where those costs will be more burdensome.
64
00:13:44.830 --> 00:13:48.669
Jonathan Shenkman: Now let's discuss keys to retirement success in 2026.
65
00:13:48.780 --> 00:14:05.889
Jonathan Shenkman: that aren't necessarily about money. First is to choose appropriate housing. While increasing costs related to taxes, repairs, upkeep costs are all challenging on a fixed budget, there are also non-financial issues that are important for a multi-decade retirement. And these include having a home with…
66
00:14:05.890 --> 00:14:25.509
Jonathan Shenkman: Just as some examples, single-story layouts to eliminate stairs, barrier-free bathrooms with walk-in showers and grab bars, wide doorways and hallways for wheelchair or walker access, open floor plans for easy navigation, accessible outdoor spaces such as a patio with level surfaces, which is important, installing smart home technology.
67
00:14:25.510 --> 00:14:37.290
Jonathan Shenkman: for lighting, security, emergency alerts. The bottom line here is this. A home that's set up to accommodate aging will allow retirees to live there for longer, with a lower probability of suffering serious injury.
68
00:14:37.540 --> 00:14:53.379
Jonathan Shenkman: Next is to make sure you have a lot of friends populating your social life. As people age, social circles tend to shrink, but the quality of relationships often improves. Older adults should prioritize emotionally fulfilling connections, which are extremely beneficial in retirement.
69
00:14:53.470 --> 00:15:13.170
Jonathan Shenkman: And studies have shown that strong relationships might help protect against cognitive decline, buffer against depression, and offer higher levels of happiness. None of this is a secret to anyone. Prioritizing healthy socializing is so imperative. This can happen at places of worship, study groups, book clubs, the golf course, and many other venues.
70
00:15:13.180 --> 00:15:25.360
Jonathan Shenkman: Next is to develop a strong sense of purpose. Remember, after 4 decades in the workforce, a career can become part of your identity. Waking up one day without that identity can be a large hole to fill.
71
00:15:25.570 --> 00:15:34.299
Jonathan Shenkman: To fill this void, start by making a list of things that are important to you. The next step is figuring out how to incorporate those interests into your everyday life while in retirement.
72
00:15:34.390 --> 00:15:50.280
Jonathan Shenkman: Family and spirituality might be part of your sense of purpose. However, family members can have their own schedules, and hang out at your place of worship most of the day might not be practical. Instead, determine projects or causes that you care about, and explore how to get involved.
73
00:15:50.280 --> 00:15:56.719
Jonathan Shenkman: This type of work can cause an immense amount of reward and give you a reason to jump out of bed every morning.
74
00:15:56.720 --> 00:16:07.100
Jonathan Shenkman: And finally, keep your mind and body working. A phrase I hear often from retirees is use it or lose it. If you don't use your mind or body, it will inevitably deteriorate.
75
00:16:07.100 --> 00:16:17.609
Jonathan Shenkman: That's why it's imperative to figure out a way to keep your mind and body working. The retirees I work with who are most successful generally have a physical activity that they enjoy and do consistently.
76
00:16:17.610 --> 00:16:21.700
Jonathan Shenkman: Pushing yourself cognitively and physically can help prolong your
77
00:16:21.700 --> 00:16:39.059
Jonathan Shenkman: active retirement years. In addition to physical activity, finding cognitive exercises that push you to think is extremely helpful. And this might be playing games, which can double as a good social activity, writing a book or a regular column in a local paper, or teaching a course at a nearby high school or community college.
78
00:16:39.060 --> 00:16:47.179
Jonathan Shenkman: There are many ways of exercising your brain. The key is finding something you enjoy so you can stick with it over the long term.
79
00:16:47.540 --> 00:16:50.999
Jonathan Shenkman: Now let's discuss common mistakes folks make in retirement.
80
00:16:52.690 --> 00:17:10.380
Jonathan Shenkman: And this will help listeners plan accordingly. Retirement mistake number one is failure to retire to something, and I've alluded to this. While employed full-time, folks tend to complain about tedious tasks, such as commuting, meetings, difficult coworkers, difficult clients, and other activities. These activities, whether they're pleasant or not.
81
00:17:10.380 --> 00:17:12.770
Jonathan Shenkman: Provide folks with a daily structure.
82
00:17:12.880 --> 00:17:26.129
Jonathan Shenkman: Unfortunately, many retirees find out within a few months into retirement that there's a lot of time to kill when you're not working. While hot me's, dining out, and traveling are all worthwhile endeavors.
83
00:17:26.130 --> 00:17:28.819
Jonathan Shenkman: None of them are full-time pursuits.
84
00:17:28.820 --> 00:17:49.289
Jonathan Shenkman: Many people envision their retirement as a life of leisure, sipping cocktails by the beach, playing golf, visiting their grandchildren. Unfortunately, most hobbies can't be done full-time. It's imperative for folks to develop and even test out their daily routine in retirement while they're still working. This aspect of retirement readiness is just as important as the financial considerations.
85
00:17:49.440 --> 00:18:08.709
Jonathan Shenkman: The second retirement mistake is taking too much investment risk. The combination of having more time and sitting on a pool of assets may tempt retirees to play the market or make various speculative investments. This is not the phase of life to take these risks. Even if they're small, gambling is addictive, and the slope is slippery.
86
00:18:08.780 --> 00:18:18.470
Jonathan Shenkman: A few lucky trades or imprudent deals that may work out can cause someone to risk more capital, which may ultimately lead to wiping out a significant portion of one's nest egg.
87
00:18:18.490 --> 00:18:32.320
Jonathan Shenkman: Retirement is the time to enjoy the fruits of your labor. It is not the time to risk your capital when you have a harder time to earn it back. This necessitates taking proper precautions to protect your funds from both investment risk and inflation.
88
00:18:32.650 --> 00:18:42.919
Jonathan Shenkman: Retirement mistake number 3 is ignoring your safe withdrawal rate. I brought this up once already, but it's worth repeating. Retirees must spend wisely. Unlike working years, overspending in retirement can…
89
00:18:43.320 --> 00:18:55.730
Jonathan Shenkman: can quickly deplete savings, leaving little room to recover. A prudent withdrawal strategy is essential to avoid relying on family or facing financial hardship. Discipline matters more when income is fixed
90
00:18:55.730 --> 00:19:05.839
Jonathan Shenkman: And time to rebuild is very limited. And retirement mistake number 4 is neglecting long-term care and estate planning. As I mentioned previously, take the time to sit down with a competent attorney.
91
00:19:05.840 --> 00:19:28.169
Jonathan Shenkman: and insurance advisor who specialize in these issues. An attorney can draft the relevant documentation, such as a will, but also the appropriate documentation needed for when you're still alive but need extra help. This includes a healthcare proxy, a power of attorney trust, if necessary. This planning will ensure that your family's provided for in the event of deteriorating health, as well as for orderly disposition of your assets upon death.
92
00:19:28.170 --> 00:19:35.170
Jonathan Shenkman: On the insurance front, while life and disability insurance may be less relevant, Long-term care insurance is imperative.
93
00:19:35.220 --> 00:19:49.150
Jonathan Shenkman: After all, about 70% of retirees have long-term care needs at some point in retirement. The cost of this care may range from $70,000 to nearly $130,000, perhaps even more, depending on the type of care and what part of the country you reside in.
94
00:19:49.150 --> 00:19:55.760
Jonathan Shenkman: Failure to plan for how to handle these expenses will have a devastating impact on your finances.
95
00:19:55.760 --> 00:19:59.130
Jonathan Shenkman: As well as your family, who will need to determine how to manage your care.
96
00:19:59.130 --> 00:20:13.340
Jonathan Shenkman: If long-term care insurance is not an option due to bad health or financial concerns, then other options should be discussed with your attorney, who may suggest Medicaid planning. The key with all this type of planning is to get it done well before they may become relevant.
97
00:20:13.340 --> 00:20:24.130
Jonathan Shenkman: And finally, mistake number 5 is not spending your money. While working, people are told repeatedly to save and invest. However, few people are encouraged to spend their nest egg in retirement.
98
00:20:24.130 --> 00:20:38.169
Jonathan Shenkman: This shift in psyche from saving to spending is a difficult transition for many. I've seen it. Retirees often have feelings of guilt about spending down their nest egg, thinking that perhaps the money would be better used by their kids or charity.
99
00:20:38.350 --> 00:20:54.879
Jonathan Shenkman: This is the wrong approach. As I remind my clients, money is not a scorecard to compare to others, rather it's a tool to enhance one's life. After decades of making money, saving and investing it, you have earned the right to spend it. As long as you're spending within your means, it should be done guilt-free.
100
00:20:55.030 --> 00:21:00.780
Jonathan Shenkman: This is also a good time to remind listeners that there is no award for being the richest person in the graveyard.
101
00:21:01.230 --> 00:21:05.959
Jonathan Shenkman: Speaking of spending money, let's discuss a popular topic in retirement, which is a bucket list.
102
00:21:06.110 --> 00:21:14.140
Jonathan Shenkman: A bucket list isn't just an itemized agenda of experiences or achievements that a person hopes to accomplish before they kick the bucket or die.
103
00:21:14.180 --> 00:21:29.859
Jonathan Shenkman: And I've always been a big fan of being goal-oriented, and have encouraged clients to jot down a list of their own goals. However, after working with hundreds of clients in retirement, I think many people take the wrong approach to their bucket list. Here's a bit of a modern twist on the bucket list concept. First.
104
00:21:30.130 --> 00:21:37.060
Jonathan Shenkman: Don't wait until retirement. In my experience, many people accumulate a list of things they want to do once they're no longer working.
105
00:21:37.180 --> 00:21:41.360
Jonathan Shenkman: Unfortunately, the realities of life may get in the way of that plan.
106
00:21:41.560 --> 00:21:49.810
Jonathan Shenkman: No one knows when they'll die or become too sick to do certain activities. It's for this reason that I always encourage clients to do things while they can.
107
00:21:50.050 --> 00:21:57.820
Jonathan Shenkman: If you want to go on a trip of a lifetime and have the money and time to do it, then you should do… you shouldn't save it for some time in the future. Do it now.
108
00:21:58.230 --> 00:22:13.579
Jonathan Shenkman: If you want to learn a new skill or a hobby, and could carve out some time during your working years to practice, then you should do it. Unexpected life events occur, so seize the opportunity by tackling some of your bucket list items today. Include a date.
109
00:22:13.820 --> 00:22:29.050
Jonathan Shenkman: Another important one. I wish… a wish list of items with no set date for when you want to plan to achieve them will likely just remain a wish. On the other hand, if you include a date by which you'd like to accomplish a specific goal, then you'll be more likely to reach it.
110
00:22:29.170 --> 00:22:35.519
Jonathan Shenkman: If you are very serious about certain items on your list, I'd also recommend jotting down a more specific
111
00:22:35.650 --> 00:22:55.279
Jonathan Shenkman: action plan for how and when you will accomplish them. For example, if hiking the five highest peaks in North America is on your list, then indicate when you plan to accomplish each peak, but also know when you will buy the appropriate gear and detail a training schedule to ensure you're physically fit to accomplish these objectives. Goals with no timeline are much easier to procrastinate.
112
00:22:55.310 --> 00:22:57.269
Jonathan Shenkman: It should be a living list.
113
00:22:57.440 --> 00:23:00.960
Jonathan Shenkman: People's priorities and interests evolve over time.
114
00:23:01.090 --> 00:23:19.729
Jonathan Shenkman: That's why a bucket list shouldn't be written in stone. Things can and should move down in priority, or even fall off the list as your interests change. For example, you may have wanted to take a cruise around the world in retirement, but now have grandchildren that you prioritize spending time with. Perhaps the cruise should be deprioritized.
115
00:23:19.730 --> 00:23:30.780
Jonathan Shenkman: or modified with something shorter duration, or just dropped entirely. The ultimate goal is living your best life, and the definition of best life may have changed as you age.
116
00:23:30.920 --> 00:23:48.720
Jonathan Shenkman: Having a bucket list that is fluid can facilitate a guilt-free way to reflect changes in your preferences as your life evolves. And also keep in mind that many of the best experiences in life are beyond one's bucket list. We all relish the next big event in our lives amid the trip.
117
00:23:48.720 --> 00:24:02.280
Jonathan Shenkman: family celebration, some type of luxury splurge. However, some of the best that life has to offer takes place in our everyday, mundane activities. This may include being able to sit down with your spouse for breakfast without feeling rushed by work.
118
00:24:02.440 --> 00:24:22.270
Jonathan Shenkman: Perhaps it's babysitting your grandkids or watching a TV show together with your child or grandchild on a random Thursday night. It could be a pleasant conversation or a laugh you share with a longtime friend. I believe that as most people look back on life, they'll find more joy in these types of ordinary activities than more exotic entries typically found
119
00:24:22.270 --> 00:24:24.159
Jonathan Shenkman: On a retiree's bucket list.
120
00:24:24.160 --> 00:24:30.129
Jonathan Shenkman: Appreciating this perspective may be helpful to some as they contemplate their own bucket list.
121
00:24:31.040 --> 00:24:46.199
Jonathan Shenkman: Now, zooming out just a bit, one of the biggest questions many families ponder as they approach retirement is whether they should hire a financial advisor, and it makes sense for some families, and not make sense for others. And in my experience, there are generally 4 main reasons why someone
122
00:24:46.200 --> 00:24:52.749
Jonathan Shenkman: should hire… decide to hire a financial advisor, and hopefully this framework can simplify the decision process for many.
123
00:24:52.950 --> 00:25:05.719
Jonathan Shenkman: One, you don't know what you're doing. Many smart and successful people don't make good financial planning or investing decisions. It has nothing to do with intellect, it's simply because studying the field of personal finance is not how they spend their time.
124
00:25:05.720 --> 00:25:22.969
Jonathan Shenkman: Not being immersed in a certain area will certainly cause folks to miss planning opportunities. Getting your financial advice from friends and family is generally a good indication of this. This is similar to going to the gym and selecting your exercise routine based on what you see other people doing.
125
00:25:22.970 --> 00:25:34.499
Jonathan Shenkman: What others do should not impact your approach. You need a strategy that caters to your circumstances and goals. Playing copycat to what your friends on the golf course are doing is ill-advised.
126
00:25:34.810 --> 00:25:51.879
Jonathan Shenkman: Two is that you're too busy. There's a finite amount of time in the day. Not every task can realistically be done by yourself. Delegating certain tasks frees up your time, allowing you to spend it on other, more enjoyable or productive areas. For many retirees, this point rings very true.
127
00:25:51.880 --> 00:25:58.219
Jonathan Shenkman: They've spent 4 to 5 decades in the workforce. They don't want a new part-time job researching how to best allocate their investments.
128
00:25:58.250 --> 00:26:10.310
Jonathan Shenkman: or the latest strategies to save on taxes. Instead, they'll pay a financial advisor to handle these tasks so they can spend their time on the golf course, relaxing with friends or family, or pursuing other endeavors that spark more joy in their life.
129
00:26:10.470 --> 00:26:25.550
Jonathan Shenkman: Three is that you're too emotionally involved, and this is so common. Getting emotional about your investments is very common, but it is always, always leads to bad decisions. Some of the biggest mistakes people make about money are not related to intelligence or lack of knowledge.
130
00:26:25.720 --> 00:26:44.009
Jonathan Shenkman: Rather, they're due to behavioral issues. Being scared, excited, or triggered in some way all can cause rash money decisions. There are always potentially emotional times. This may involve geopolitical issues, company-related news, or an emotional attachment to a certain area of the market or a stock.
131
00:26:44.120 --> 00:26:48.519
Jonathan Shenkman: The best advice when it comes to emotions in your portfolio is to keep them in check.
132
00:26:48.840 --> 00:26:57.880
Jonathan Shenkman: Hiring a financial advisor to stand in your way to prevent you from making imprudent, emotionally charged decisions with your money is an extremely effective approach.
133
00:26:58.260 --> 00:27:10.630
Jonathan Shenkman: And number 4 is family financial continuity. There are some folks who have the interest, they have the time, and emotional stability to handle their own finances. However, their spouse or other family members don't share these same interests.
134
00:27:10.780 --> 00:27:23.159
Jonathan Shenkman: If the financial quarterback of a family dies, their partner will need financial guidance going forward. Oftentimes, a family will hire a financial advisor to serve as a sense of continuity for their family's finances.
135
00:27:23.160 --> 00:27:36.309
Jonathan Shenkman: The same advisor that they've been working with for years is continuing to help them make good money and investment decisions. Leaving loved ones in good hands upon your passing is one of the biggest motivators for families to hire a professional.
136
00:27:38.240 --> 00:27:47.350
Jonathan Shenkman: So I began this talk saying that retirement today is very different than what it was for previous generations, yet there are certain planning ideas that are timeless.
137
00:27:47.350 --> 00:28:11.479
Jonathan Shenkman: And on that theme, I'll close today's webinar by sharing some timeless retirement wisdom from my grandfather. And just by way of background, my grandfather, whose name was Sam Blumenfeld, was part of what became known as the Greatest Generation. He came to New York City in 1947 after experiencing the atrocities of the Holocaust and seeing many friends and family members murdered at the hands of the Nazis. He didn't complete his schooling since the war interrupted his studies, yet in the United States, he managed
138
00:28:11.540 --> 00:28:27.489
Jonathan Shenkman: to have a family, start a small business, become an active member in his community, and he enjoyed a more than 30-year retirement before passing away several years ago at the age of 98. Here are some retirement lessons that I picked up from him. First, there was his focus
139
00:28:27.570 --> 00:28:44.719
Jonathan Shenkman: on goal-oriented investing. Many investors start investing without clear objectives. Sometimes they get into the stock market for a little excitement, or because it seems like they're a responsible thing to do. My grandfather invested with the direct purpose of meeting his cash flow needs.
140
00:28:44.780 --> 00:28:59.870
Jonathan Shenkman: and leaving inheritance for his family. This laser-focused approach was helpful in tuning out the noise. He didn't get caught up on relative performance, since his sole benchmark for success was his ability to achieve his own objectives.
141
00:28:59.910 --> 00:29:07.490
Jonathan Shenkman: That is why he was able to retire on a pretty modest sum of money that managed to support his lifestyle for over 3 decades in retirement.
142
00:29:07.840 --> 00:29:13.860
Jonathan Shenkman: Make sure you stay focused on achieving your goals in retirement. Don't let all the noise distract you.
143
00:29:14.130 --> 00:29:24.960
Jonathan Shenkman: Next is a theme that has come up multiple times, which is proactively downsizing. After my grandfather retired, he and my grandmother sold her house and moved to a smaller house in a vibrant.
144
00:29:25.240 --> 00:29:29.379
Jonathan Shenkman: nearby community. Many retirees hesitate when it comes to downsizing.
145
00:29:29.500 --> 00:29:39.029
Jonathan Shenkman: They stay in their current home too long, oftentimes resulting in selling their home later under far less favorable or more challenging circumstances.
146
00:29:39.030 --> 00:29:54.549
Jonathan Shenkman: Downsizing sooner can help simplify your life by offloading the burden of maintaining a larger home, minimizing expenses, help with cash flow, and moving into a residence that's more conducive to aging. Another important aspect of downsizing is getting rid of your stuff.
147
00:29:54.550 --> 00:30:12.580
Jonathan Shenkman: My grandfather never really accumulated many things, just wasn't into it, but whatever he did have, he tried to give away to family or donate to charity during his lifetime. Giving away your things while you're alive can provide a tremendous sense of fulfillment and will relieve your errors of the burden of sorting through your stuff upon your death.
148
00:30:12.810 --> 00:30:27.010
Jonathan Shenkman: And my grandfather also intuitively understood what it meant to have a fulfilling retirement. He had a small business selling and installing draperies, and told me that he stopped working when he no longer had the patience to deal with vendors or difficult customers he referred to as the Yentas.
149
00:30:27.010 --> 00:30:39.219
Jonathan Shenkman: In truth, he was getting geared up for his retirement years in advance. He developed a routine of community involvement, attending lectures and visiting family, and this daily schedule stayed the same for most of his retirement years.
150
00:30:39.220 --> 00:30:53.349
Jonathan Shenkman: He also continued to stay curious and well-informed, regularly discussing his new stock ideas with me and reading the daily newspaper cover to cover, until failing eyesight made him actually switch to watching cable news at a very, very high volume.
151
00:30:53.390 --> 00:31:07.209
Jonathan Shenkman: After my grandmother passed away, my grandfather even got a roommate, a graduate student, 65 years his junior, and during off hours, they had meals and conversations together, which helped him stay with it, even in his 80s and in his 90s.
152
00:31:07.210 --> 00:31:19.369
Jonathan Shenkman: To reiterate a point they made earlier, I always tell clients that it is essential to retire to something, not from something. The individuals with the most fulfilling retirements maintain a strong social network.
153
00:31:19.370 --> 00:31:35.089
Jonathan Shenkman: A way to stay mentally sharp, and the ability to keep their days structured. And my grandfather managed to achieve all three of these things. And finally, there is leaving a legacy. When it comes to leaving a legacy, people often focus on the financial aspects of proper planning.
154
00:31:35.250 --> 00:31:50.799
Jonathan Shenkman: However, I would argue that a legacy is not only about the transmission of wealth, it's also about the transmission of values to the next generation. Certain values are passed to your family by modeling behaviors, the way one leads their everyday life, and how they spend their time.
155
00:31:50.980 --> 00:32:07.370
Jonathan Shenkman: In addition to watching my grandfather prioritize his family, his faith, and community, I witnessed his ability to fully live in the moment. He was able to thoroughly enjoy watching his great-grandchildren play in the backyard, chatting with friends in synagogue, or spending a weekend together with his family.
156
00:32:07.370 --> 00:32:15.240
Jonathan Shenkman: His enjoyment and happiness during all these seemingly mundane moments was palpable. In the age of 24-7 connectivity.
157
00:32:15.240 --> 00:32:29.550
Jonathan Shenkman: day that we… this is what we live in now, and we're all facing this. It's very easy to lose sight of the here and now. There's always something else that demands your attention. Unfortunately, living for tomorrow causes folks to miss out on some of the best that life has to offer today.
158
00:32:29.550 --> 00:32:43.050
Jonathan Shenkman: When I notice myself reaching for my iPhone instead of appreciating what's happening around me, I remind myself to live in the moment just like my grandfather would have, and this is perhaps my grandfather's greatest legacy, and the one that will allow me to live my life to the fullest. The underlying theme…
159
00:32:43.050 --> 00:32:47.859
Jonathan Shenkman: of these aforementioned lessons is that some of the most important retirement guidance
160
00:32:47.870 --> 00:33:02.640
Jonathan Shenkman: cannot be determined within the confines of a spreadsheet or financial planning software. My grandfather understood this instinctively, and imparted that wisdom to me, and I continue to share that same timeless advice with my clients today.
161
00:33:03.570 --> 00:33:28.090
Jonathan Shenkman: And that concludes today's program. Should you have any follow-up questions, you can reach me at jonathan at parkbridgewealth.com. Email's generally the best way to get a hold of me. 3 more quick items before I let you go. First, this concludes my winter webinar series, but don't worry, my spring webinars will be sent out in the coming weeks, and we have an all-star lineup of speakers discussing a variety of different timely, practical topics. I'll be sure to send out the invitation to these programs in the coming days.
162
00:33:28.180 --> 00:33:37.680
Jonathan Shenkman: In the meantime, if you have a friend or colleague who would like to be notified of these events, they can just subscribe to my webinar distribution list by emailing me with the word webinar in the subject line.
163
00:33:37.840 --> 00:33:52.560
Jonathan Shenkman: Second, you can follow all my work on X and Instagram at Jonathan Amoney, and by connecting with me on LinkedIn. You could also listen to my weekly podcast called Jonathan on Money, wherever you get your podcasts, and you can watch my practical planning videos, which I post several times a week.
164
00:33:52.560 --> 00:34:08.910
Jonathan Shenkman: by following me on YouTube at JonathanOnMoneyaswell. And third, please take 30 seconds to fill out my survey at the end of this program. It helps me improve my webinars and provide timely and interesting content to attendees. I thank you in advance for that. And with that, this concludes today's session. Please stay safe and healthy, and have a wonderful day, everybody.