💬 Show Notes
Wade Pfau, author of The Retirement Planning Guidebook and creator of the Retirement Income Style Awareness (RISA®) assessment joins Roger for a wide-ranging conversation on the big questions of retirement income planning. Wade breaks down why the RISA is a better fit for retirement than a traditional risk tolerance questionnaire, how to think about real estate and reverse mortgages as retirement tools, and what the research actually says about annuities — including when to buy, whether to add inflation protection, and how fixed index annuities with living benefits really work. This podcast is a replay of a recent Rock Retirement Club meetup where members were able to join live and ask questions.
Outline Of This Episode Of The Retirement Answer Man
- (00:00) Roger previews the episode and invites listeners to register for Noodle Live — a Saturday morning Zoom on March 28 at livewithroger.com
CONVERSATION WITH DR. WADE PFAU
- (02:00) Roger introduces Wade Pfau, author of The Retirement Planning Guidebook
- (04:15) RISA vs. risk tolerance questionnaires
- (10:45) How to use The Retirement Planning Guidebook
- (12:00) AI in retirement research
- (14:30) RRC Member Question: How does real estate fit into retirement planning?
- (17:00) Reverse mortgages as a retirement tool — usage trends, how the HECM line of credit works, upfront cost hurdles, and why adoption remains low
- (21:30) RRC Member Question: What is an effective marginal tax rate (EMR) and how does it affect Roth conversion strategy?
- (25:00) Navigating ACA subsidy cliffs before Medicare
- (28:00) RRC Member Question: Fixed vs. inflation-adjusted annuities
- (33:00) Annuity timing
- (37:00) RRC Member Question: Should we explore intentionally breaking the ACA cliff every few years?
- (48:00) Fixed index annuities with living benefits vs. income annuities
- (53:00) RRC Member Question: Is there an optimal age window for buying an annuity if it's a "nice to have" rather than a must?
- (57:00) Interpreting retirement planning software
SMART SPRINT
- (59:00) Pick up the latest edition of The Retirement Planning Guidebook. Use it as an approachable reference guide, or read it straight through if you're really into retirement planning.
REFERENCES
What is Retirement Answer Man?
A top retirement podcast. Roger Whitney, CFP®, CIMA®, CPWA®, RMA, guides you on how to actually do retirement well financially and personally. This retirement podcast isn't afraid to talk about the softer side of retirement. It will teach you how to retire with confidence. Two-time PLUTUS winner for best retirement podcast / blog and the 2019 winner for best financial planner blog. This retirement podcast covers how to create a paycheck, medicare, healthcare, Social Security, tax management in retirement as well as retirement travel and other non-financial issues you'll need to address to rock retirement. Retirement isn’t an age OR a financial number. It’s finding that balance between living well today and feeling confident about your retirement. It’s about gaining more freedom to pursue the life you want. Join the rock retirement community at www.rogerwhitney.com