Budget

AI and Retirement Planning

This week Angela discusses whether retirement planning is different today with the advent of artificial intelligence compared to the past. She shares her experiences from 2006 and emphasizes that while the tools and technology have evolved, the fundamental principles of successful retirement planning remain the same.
Key Takeaways 💡
Retirement planning software has evolved significantly since 2006, but advisors still need to understand the underlying principles and manually adjust the software's output to create accurate plans. Relying solely on software without understanding the fundamentals can lead to incorrect plans, highlighting the importance of hands-on experience and a deep understanding of financial mechanics.
Technology can aid in communication and problem-solving, but financial advisors must possess in-depth knowledge and troubleshooting skills, similar to a car mechanic who understands how all components work together. Advisors need to understand the intricacies of financial planning and be able to adapt to unforeseen circumstances.
A successful retirement plan requires a solid and truthful budget, clear goals, a healthy risk and income plan, a plan to address potential risks, and an understanding of economic cycles. While technology and tools evolve, these core elements remain constant and essential for achieving a successful and sustainable retirement.
A truthful budget is crucial for retirement planning, and a budget with rounded numbers is a red flag that the person doesn't know where their money is going. Understanding where your dollars are going is essential, as even a small miscalculation can significantly impact your retirement outcome.
While AI and technology offer an "easy button" for retirement planning, relying solely on these tools can be risky, as a successful retirement requires a comprehensive approach that considers individual circumstances and potential risks. Taking the time to develop a well-thought-out plan, even if it means foregoing the easy button, increases the chances of a successful and sustainable retirement.

Pocketbook Power Plays

Inflation has made everything feel tighter—but there are ways to put money back in your pocket. In this episode, Angela shares five practical strategies to help you stretch your dollars without sacrificing your lifestyle:
✅ Reevaluate home and auto insurance✅ Use credit card rewards wisely✅ Make your cash actually earn interest✅ Cut interest costs on existing debt✅ Adjust your tax planning before 2026 hits
Talk is cheap—action saves money. Tune in and start putting these ideas to work today!

Where Are You Getting Advice?

In this episode, Angela discusses the importance of seeking sound advice and avoiding common pitfalls. She shares humorous anecdotes of bad advice and emphasizes the need to be cautious about the voices influencing our decisions. Angela highlights the significance of having a trusted team of professionals to address various aspects of life planning, including business, finances, and legacy.
Key Takeaways 💡
It is important to be mindful of the sources of advice we receive and how they impact our decisions, not only in faith but also in relationships, raising children, business, and financial matters. There is a lot of advice available on every topic, but it's crucial to discern whether it's accurate and appropriate for your specific situation, especially with the rise of AI and readily available information on the internet.
Relying solely on a single professional, even a trusted one, can lead to gaps and overlaps in financial plans because they may not have a holistic view or the necessary expertise in all areas. It is important to ensure that the professional is equipped with the right tools and knowledge to provide comprehensive guidance, as even well-intentioned professionals can give bad advice if they lack expertise in a particular area.
Bad advice from even skilled professionals can stem from two main reasons: they may not know what they don't know, leading them to offer advice outside their expertise, or the right questions are not being asked, resulting in a limited or biased perspective. For instance, asking a banker how to pay for a business succession plan may lead to solutions involving banking products, while a broader approach might consider tax benefits, insurance, or alternative funding methods.
As financial situations grow more complex, individuals outgrow the need for a single professional and require a team of experts, with a quarterback to lead the charge and coordinate efforts. The role of a life planner is to help individuals define what it means for them to live life on purpose, understand their future goals, current situation, family dynamics, and feelings about risk and money, and then identify the right professionals to involve at the appropriate times.
When seeking advice for business, money, or legacy matters, it's beneficial to consult with a life planner first to help formulate the right questions and avoid costly mistakes down the road. Life planners can help identify holes in financial plans, determine which professionals need to be involved, and ultimately guide individuals towards living life on purpose.

Life Planning at 18

In this episode, Angela addresses 18-year-olds and their parents about essential financial and legal considerations as they transition into adulthood. She emphasizes the importance of financial literacy and proactive planning to secure a stable future. The discussion covers medical and financial powers of attorney, building excellent credit, planning for the future, and investing in oneself through financial education.
Key Takeaways 💡
Upon turning 18, parents no longer have automatic access to their child's medical information or the ability to make medical decisions on their behalf; therefore, it is crucial for 18-year-olds to establish a medical power of attorney with HIPAA privileges, allowing their parents (or chosen representative) to access medical information and make informed decisions if the young adult is unable to do so themselves.
Similar to medical information, financial information becomes private at 18, and parents lose the automatic right to manage their child's finances; to address this, a durable power of attorney is essential, enabling parents to assist with financial matters such as bills and loans without needing court intervention, while avoiding the complications and liabilities of being directly on their child's bank accounts.
Having excellent credit is crucial and can save a person six figures over their lifetime by securing better loan terms and lower insurance premiums; building good credit involves using credit responsibly, such as through revolving lines of credit (credit cards) and installment credit (loans), and resources like "Seven Steps to 720" can provide valuable credit education.
It is important to think about the future and not get caught up in only living in the present; young adults should research and align their education and career paths with their life goals and desired lifestyle, considering the financial implications of different choices to avoid costly reinventions later in life.
Investing in oneself through financial literacy is essential for long-term financial stability; young adults should prioritize paying themselves first by saving and investing 20% of their income, learning to live off the remaining 80%, which will help them avoid financial struggles and make informed decisions about housing and other obligations.

Life After Graduation - What Your Kids Should Know

This week we discuss essential life planning advice for parents and graduates facing the transition after high school or college. The episode covers practical financial knowledge, legal considerations, and ongoing parental support to help young adults successfully launch and sustain their independence.

Are You Taking Your Financial Supplements? (Rebroadcast)

Recently I was speaking with a client about how important it is to take preventative measures in regard to health - eating right, exercising, and taking the right supplements. It is just as important that we take preventative measures in regard to our finances - planning for the worst-case and best-case scenarios, exercising good financial habits, and revisiting your plan on a regular basis to make necessary changes.

Family Disaster Planning (Rebroadcast)

You have great power over the destiny of your family. In fact, you have the ability save your family… or destroy it. Too many of us make all the excuses in the world to not work on our estate plan or just throw darts at an attorney, get documents in place, and say we have one. Neither of these add up to a Family Disaster Plan.

Getting in Financial Shape

Getting in financial shape is tough. The problem with getting in financial shape is that most people don’t really give it a go until the pain is bad enough. Here’s a news flash…this is not good!
 
About the Podcast 🎙
Angela discusses the challenges of achieving financial stability and compares it to physical fitness. The episode focuses on the importance of discipline, prioritization, and long-term planning to improve financial health. Angela shares insights, real-life examples, and actionable tips to motivate listeners to take control of their financial future.
Key Takeaways 💡
Angela highlights the common struggle with New Year's resolutions, particularly in fitness and financial goals, noting that many people fail to follow through as the year progresses.
Financial fitness, like physical fitness, requires effort, discipline, and a focus on various areas such as budgeting, estate planning, retirement readiness, and asset protection.
Achieving financial goals is a long-term process that often requires individuals to reach a point where the pain of not changing outweighs the pain of making changes.
Many people only take financial action during significant life events or crises, which is not ideal for long-term stability.
Angela emphasizes that financial stability requires prioritization and commitment, and excuses for inaction are not valid.
Listeners are encouraged to identify what they need to do to prioritize financial stability, such as using reminders of loved ones or seeking accountability from others.
Listeners are encouraged to find motivation to improve their financial situation and are directed to the organization's website for additional resources.

Life After Graduation (Rebroadcast)

Graduation is a major step for those important young adults in our life. A parent’s goal is always to see their kids launch successfully and stay successfully launched. How do you do that? Well, we have few ideas for you.
You can read the corresponding article on our website at: https://www.kennedy-financial.com/blog/life-after-graduation-what-should-your-kids-know.

Finding Money to Save

In the 4th quarter of 2023, household debt reached 17.5 trillion dollars with credit card debt. Here are a few ideas to possibly help you save money for retirement.