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Retirement Planning Bot: A Unique Solution for Unique Times

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wall art bot representing a retirement planning bot

We’ve all seen the terms recently – unique, unprecedented, even surreal or seismic. Whatever you call these pandemic times, most of us can agree that they often require equally anomalous ways of dealing with them. Depending on how close you are to retirement, that could apply to your retirement planning too.

I was excited to see that Michelle Singletary, personal finance columnist for The Washington Post, has introduced a retirement planning bot to “see us through the coronavirus pandemic and beyond”.

If you aren’t familiar with bots, they are software applications which are programmed to complete certain tasks. In this case, the bot collects information about your financial situation and retirement plans and makes recommendations relative to both. I had the opportunity to run through the bot program and see first-hand some of their suggestions.

The good news is that this is all completely anonymous. While they ask specific questions about your finances, they don’t know who you are, and they don’t save any of your information. Along the way, you can hear advice and commentary recorded by Michelle. I’ll be candid: I didn’t always find them helpful, but I thought they were good reminders and could offer a little effective guidance, particularly for some people who may be early in their planning.

On the downside, the program doesn’t factor whether you’re planning as an individual or a couple. That can make a huge difference when they ask for retirement or bank account balances and earnings. The bot also doesn’t ask your expected retirement age. It just makes the assumption that you will retire as soon as you reach the age for full Social Security benefits.

The best thing about this particular retirement planning bot is that it provided a step-by-step guide with as much hand holding as you can expect from a robot program. And there is a little encouragement along the way provided you are doing something to fund your retirement. They even have some FAQs at the end.

A couple important things to focus on:

  1. This is not a replacement for your professional financial advisor. A single source of information is rarely enough for something as important as retirement planning.
  1. You may not agree with the assessment of your financial situation and your retirement plans. That’s okay. It doesn’t mean you are doing a bad job of funding your retirement.

I think the best way to view this tool can be found in their own description:

“We may not be able to capture everything about your financial situation, but it’s a place to start”.

Many people are very concerned about their financial situation right now regardless of when they plan to retire. This retirement planning bot may help relieve some of the stress as you think of future plans. Who knows? You may just be better off than you think. And, if not, you could get some ideas on how to get back on track.

Image captured by Sharlyn Lauby while exploring the streets of Fort Lauderdale, FL

Using Social Media in Unretirement: 5 Day Plans

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using social media on a phone while traveling in unretirement

When we have a little spare time – or when spare time is abundant – many people look for opportunities to better themselves. That’s smart because new skills can often open doors. Whether you plan to work during retirement or you just enjoy learning new things, successfully navigating social media platforms may bring both satisfaction and opportunities.

Communication skills have always been a desirable workplace competency. It factors heavily in productivity, leadership and, of course, marketing. In today’s modern workplace, that includes online communication. Social media is particularly valued because of the vast number of users. For that reason, I’ve written short 5 day learning guides for Facebook, LinkedIn, Twitter and Instagram.

Your 5 Day Plan to Using Facebook

Many of us are already using Facebook which can be a valuable business tool without disrupting our personal space. Businesses and groups are plentiful, so there are work related things I just prefer to read on Facebook. Best of all, Facebook is very helpful in offering notifications and reminders to keep you on top of important customer interactions.

Your 5 Day Plan to Using LinkedIn

LinkedIn is another social platform where most of us can already be found. And whether you are looking for a career opportunity or just want to network, the business application of LinkedIn is second to none. LinkedIn is great about helping you optimize your profile and connect with others who share your work interests.

Your 5 Day Plan to Using Twitter

Twitter describes itself as an online news and social networking site. Over the years, Twitter has made several changes to become more business friendly. Today it’s easy to have conversations with your Twitter contacts or even Tweet Chats with larger groups who share common interests. You can quickly grow an audience on Twitter.

Your 5 Day Plan to Using Instagram

Instagram has rapidly risen to the top of the social media ecosystem where 80% of users follow at least one business brand. Instagram grows brand recognition through the power of visuals with graphic images, videos and stories. Following hashtags will help connect you with a global audience that shares your interests.

There are a few other popular social platforms like YouTube, Pinterest and TikTok that you can explore. But I wanted to give you some basics here to help you build a solid foundation.

By now we know that social media isn’t just some fad. It continues to grow as a communication medium, connecting business and personal brands with a vast global network. Whatever your goals, you can scale your social media activity up or down. Right now, we’re really experiencing the value of connection. Learn how to carry that forward into your own unretirement.

Retirement Savings Boost Due to Relaxed Rules

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wall art help with retirement

We don’t write a lot about retirement finances – preferring to leave that to the experts. But there are some recent changes worth knowing about regardless of when you plan to retire. And it’s definitely something you should know if retirement is a relatively short time in your future.

Of course, I’m referring to the Coronavirus Aid, Relief, and Economic Security Act or the Coronavirus Relief Bill as it’s commonly called. Just signed into law, this new measure is designed to stimulate the economy and offer economic aid to those negatively impacted by this global pandemic. 

The most visible benefit of the new bill is a direct, one-time payment to most adults. The actual amounts of each stimulus check depends on age and reported income so be sure to read up on the details. Best of all, the bill includes language that allows Americans receiving Social Security to obtain a stimulus payment as longs as they received a Social Security benefit statement (SSA-1099).

The aid package provides three provisions that can benefit your retirement financing.

  1. You can delay taking your Required Minimum Distribution (RMD) for most defined contribution plans when you reach the applicable age as indicated in the SECURE Act. This new law suspends those RMDs for all of 2020. It’s particularly good news since cashing out securities in a depressed market is not ideal. Of course, withdrawals are still allowed if you really need to make them.
  1. The bill allows you to borrow more against the money you have already saved in your contribution plans. Typically, you could borrow up to $50,000 or 50% of your vested account balance, whichever is less. This new measure will double that and allow you to borrow up to $100,000 against your existing savings.
  1. The Coronavirus Relief Bill allows struggling savers to take hardship distributions of up to $100,000 from retirement plans and individual retirement accounts in 2020 without the 10% early withdrawal penalty if you are under age 59 ½. Smart investors know that this early withdrawal is never ideal – but it is available if needed.

Planning your finances for retirement is not easy even in the best of times. As global economies struggle to deal with the outcome of this pandemic, many workers are rethinking their retirement plans. The hope, of course, is that recovery will be quick. These relief measures are expected to help those who need it the most.

Qualifications directly related to COVID-19 may apply so, before taking any actions, we recommend that you discuss them with your financial professional.

If you are looking for additional resources to help you during these difficult times, AARP has a few great articles including regular updates as significant events happen. Caregivers can find information on taking care of a sick relative or friend. Best of all, they include some great tips on how older adults can reduce their risk of illness. Stay safe out there!

Image captured by Sharlyn Lauby while exploring the streets of Havana, Cuba

Spend Safely: Stanford Study on Retirement Planning Strategies

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sorry not working out of order sign similar to retirement

If only we had a nickel for every article about financing retirement . . . well, let’s just say our retirement would be complete! Retirement planning strategies can vary widely for one important reason – everyone is different. What works well for you might not work at all for me. So, the best we can do is gather information, examine our own situation, and make educated decisions that will benefit us when we retire.

That’s why I was happy to come across the “Viability of the Spend Safely in Retirement Strategy” report on aging and retirement, published last month by the Society of Actuaries’ Committee on Post Retirement Needs and Risks. Don’t let the name of the report scare you away . . . my takeaway from the 80-page report can be broken down into two key areas:

  1. Optimize your Social Security benefits.
  2. Use the IRS Required Minimum Distribution (RMD) rules to generate a retirement “paycheck”.

First, a little background. The study was conducted by Stanford University, where they analyzed 292 possible retirement planning strategies, using eight different metrics to measure how a particular strategy might meet retirement income goals. The results of the study were published in 2017 with the goal of providing a framework for helping people approaching retirement age make important life decisions.

The first key point about optimizing Social Security benefits is pretty straightforward, and you probably know it already – hold off claiming Social Security payments as long as possible. You can draw payments as early as age 62, but there are financial advantages to waiting until the IRS mandated age of 70. That being said, I have been seeing quite a few articles lately extoling the virtues of claiming as early as possible, so do your research to determine what strategy works best for you.

Once you reach the Required Minimum Distribution (RMD) age, that’s when key point number two kicks in and you need to claim your Social Security payment. In addition, the Stanford report suggests that you also start collecting that retirement “paycheck” from your individual retirement account (IRA) or 401(K) account. How much you want to withdraw changes as you age, so make sure you know your IRS requirements. The report recommends at a rate of 3.65% of the total. Remember, you are only required to make the withdrawal – you don’t have to spend it. You have the option to pay income tax on the withdrawal and reinvest all or part of the after-tax proceeds, depending on your financial situation.

My takeaway from this report was that if we plan our financial strategy using this model, then we can use the time between age 62 and 70 to ease into phased retirement. This is what unretirement is all about! Talk with your employer to work out flexible scheduling and develop a plan to transition into a limited work arrangement. Employers are looking for ways to keep senior talent engaged so it could be a win for everyone. Or you could try a limited work arrangement in a field you’ve always loved.

The full report is not a difficult read so check it out if you can. There is a great section that points out the primary advantages and disadvantage of this strategy. And it’s important to remember that most investments are always subject to risks as well as bonuses depending on market fluctuations. I like that the study is the culmination of analyzing 292 retirement planning strategies. That can make it a good foundation for safe spending in your retirement.

Planning, Goals and The One Question to Ask for Retirement

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Sign I Am Powerful in planning for retirement

Many years ago, I was interviewing for my very first management position. As I remember, the conversation went something like this:

Hiring manager: What would you say is your biggest weakness?

Me: I don’t do very much in the way of goal setting.

Hiring manager: So, what is your process for getting things done?

Me: I sort of think about what needs to get done then work towards accomplishing that.

Me: Oh, I guess I do some goal setting after all.

True story.

In my effort to think like a manager, I had made the mistake of thinking that goal setting was only that thing you did during your annual performance review (or around New Year’s). The hiring manager either took pity on me or was impressed that I had that epiphany, so he immediately asked me how soon I was available.

Fast forward to today. Sharlyn and I are working on an ongoing project when we discover that the company we had contracted with had made a sizeable error. For a few minutes, we discussed a number of different ways to address the matter. Then, at the same time, we both said, “What do we ultimately want to come out of this?”

That’s the question that identifies the goal and helps formulate the plan to accomplish it. Goals come in all shapes and sizes. When you realize that, planning and goal setting becomes much more manageable – regardless of the size  and scope of the project. And that is very powerful!

Once we know the result we’re looking for, is it possible to apply this thinking to something like our unretirement?

The BHAG – Business guru Jim Collins wrote about the Big Hairy Audacious Goal, which is the huge goal that we are planning to accomplish. For Sharlyn and I, it’s probably the same as everyone – having enough money for a comfortable retirement.

Plan Goals – In planning for retirement, there are several goals that help us accomplish the BHAG. Reducing expenses is a great example. So, we identified one of our large annual expenses – groceries – and put together a plan to reduce that expense. The plan goal was to lower grocery spending and we ended up cutting that expense in half.

Micro Goals – Some may call these short-term goals. In our example, there were many ways to cut grocery costs. Especially since, for us at that time, going to the grocery store was just walking up and down the aisles picking up anything we liked. One very effective solution was to plan our meals so all we purchased was what we needed for each meal.

While this was a very effective and helpful (and enlightening!) exercise, it’s no surprise that cutting grocery costs alone didn’t provide enough extra money for our BHAG of a comfortable retirement. But it was an important step in the overall planning process. And every step of the way, we ask ourselves what we want to accomplish because accomplishing all of those micro goals will add up toward the BHAG. 

Oh, did I get the job? No. But that got me started on planning for the next opportunity.  

Encore Careers Can Offer Independence

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NASA Vehicle Assembly Building United States Flag symbol of Independence Day

Today is Independence Day in the United States. And what better day to think about our own personal independence. More importantly for our retirement, does an encore career factor into it?

You may recognize the building in the picture above. It’s the NASA Vehicle Assembly Building (also known as the VAB) located in Cape Canaveral. This week, Sharlyn and I had the honor of visiting as a guest of the NASA social media team to watch their latest launch of the Orion capsule.

I’m happy to say that the launch was a huge success! But, on the drive to the Cape, I thought about everything that went into this launch. The years of planning and thousands of man-hours from NASA and their private partners. Personally, Sharlyn and I needed the independence to make the trip – in terms of both time and money.

In retirement, we get the time to spend doing the things we really love. But for many of us, the lack of money in retirement could limit our independence. Balancing our retirement stop-working date with our future financial requirements is something we all need to do.

So we need to plan for that! And an encore career could offer a solution. None of us can predict the future but we can plan based on what we know. There are many free resources from the Social Security Administration that can help. Spend a little time between the barbecue and fireworks and see how independent you can be in retirement.

We have often said that successful retirement needs a lot of planning. Knowing your financial needs and the limits of Social Security are important. Just as important is understanding your personal contribution to retirement finances. And that could go a long way toward your own independence.

Your 5 Day Plan to Use Instagram in Unretirement

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Instagram, social media, logo, retirement, Unretirement

We have been showcasing the use of social media sites to help with marketing in your encore career. Whether your goal is to work as a freelancer or you plan to extend corporate work, social media can play a significant role. Demonstrating your skills with these platforms could make you a more marketable employee. So far, we’ve talked about Facebook, LinkedIn and Twitter. If you haven’t check them out, you can find them here:

Your 5 Day Plan to Using Facebook

Your 5 Day Plan to Using LinkedIn

Your 5 Day Plan to Using Twitter

You might be wondering why you should pay attention to Instagram if you’re already using one or all of the social channels we’ve already covered. You will see as we explore Instagram, there are some very unique aspects to this medium. As such, there are many users who spend hours on their accounts – – far more than any other site. So, as any fisherman or marketer will tell you, you need to be where your audience is!

What is Instagram?

Instagram is a free photo and video sharing app where subscribers can upload graphics and share them with their followers. Instagram launched in 2010 and quickly grew in popularity with more the 1 billion registered users as of May 2019. They were acquired by Facebook in 2012 and are arguably the most popular social media site in operation.

The reason for the popularity? Images! The main focus of Instagram is visual, and this has attracted a huge amount of creativity. It allows users to get a glimpse of the lives of their favorite celebrities and engage with beloved brands at the same time they enjoy vacation and children photos from friends and family. 

You can sign up for Instagram easily and, like all other social sites, it’s free to create an account. 

Your 5 Day Plan to Learning Instagram

DAY 1 – Download the Instagram App. The whole idea behind Instagram is to quickly and easily share images and video you capture with your mobile devise. For that reason, it’s easier to use the mobile app which is available for iOS or Android.

DAY 2 – Start Following. Like most social sites, you have a feed that will showcase the people and brands you follow. At the bottom of your screen you will see a magnifying glass so click on that. Here you can enter names of people you know and follow elsewhere or topics you find engaging – like retirement. Just like with Twitter, hashtags will bring users with similar interests together. If you find an image you like, click on it to launch a window with all the posts within the hashtag. From here, you can immediately follow them simply by clicking “Follow” or click on their user name to see everything they’ve shared. After a short while, clicking on the magnifying glass will give you recommendations on people and brands to follow based on your interests and likes.

Day 3 – Engage, engage, engage. Social media is all about engagement and Instagram is no different. Now that you have people, brands and hashtags to follow, you are bound to find photos and videos you really like. If so, go ahead and click on the “heart” under the image. That will tell the person – and Instagram – that you like it. You can also post a comment by clicking on the “word balloon” or you can “heart” other peoples’ comments. Pay attention to the hashtags that your followers share. If you like their content, chances are good that their hashtags will lead you to others who share similar – but different – images.

Day 4 – Post a Photo. By now, you should be pretty comfortable getting around the app. You found some people to engage with and you want them to interact with you. It’s time to post a photo! Once you have a subject, take 2 – 3 photos at different angles. At the bottom of the Instagram app is a plus sign – clicking on that will bring up your camera roll where you can choose the best image to share. Click on the image then click “Next”. This will take you to an editing screen where you can quickly edit the shot before posting. Or you can quickly apply a “filter” which applies a preprogrammed set of attributes to your image. For now, just keep it normal and click “Next” again. In this screen, you can say something about the image (don’t forget hashtags), tag people, and add location information before sharing. 

Day 5 – Set Audience Goals. To be really successful at something, we need to have goals. As you can see with Instagram, like most social channels, success is centered around growing your audience. And growing an audience takes more following, posting and engaging. You can make your goal to follow 5 new people every day and follow one new hashtag every week. Set aside 20 minutes every morning to like images and share comments. And don’t forget to snap some photos and share them as well. Remember, there aren’t any shortcuts for this so just schedule the time. Before you know it, you will have a fun and engaging audience!

BONUS! Repost for Instagram. You may have noticed that Instagram differs from most social platforms in that they don’t easily allow you to share other people’s images. The idea behind Instagram is to informally let others get to know “the real you” through pictures. So, they want you to share YOUR pictures. Fortunately, enterprising app developers have created independent apps that will allow you to repost what other people share. Just look for them wherever you download your mobile apps.

Instagram has set itself apart from other social platforms by creating a unique and exciting ecosystem and remaining true to their brand. That should be a lesson for all of us! Another thing to know is that 80% of Instagram users follow a business brand. That shows the power of Instagram in brand marketing. Just think what it can do for your personal brand in Unretirement!