The Setup:

How do I handle finances in a second marriage? Should I cash out my old life insurance policies? Is the Rule of 100 a good thing? Let’s dive into the mailbag and answer these and other questions.

Click the timestamps below to skip to a specific topic in the episode.

The Combination and Key Points: 

On this episode of Unlocking Your Financial Future, we dive into the mailbag and answer some of your most pressing financial questions.

First up, Ralph has been forced into an early retirement and says his pension won’t be enough to live on. Does he need another job? That’s a tough question, but there are some things you can do. First, check with your company to see if they can offer a buyout and try to negotiate with them. If that doesn’t work, there may be a backdoor way to tap into your IRA without the 10% penalty.

Frank wants to know if the Rule of 100 is a good thing. The rule is a measurement tool that takes your age and subtracts it from 100 to see how much risk you should take when investing. So, if you’re 70, 70% of your investments should be in something safe and 30% can be riskier. The Rule of 100 is a good starting point to determine investing strategies, but it’s not a one-size-fits-all approach.

Christy is getting married for the second time and wants to know how to handle her finances. The most important thing is to have conversations with your soon-to-be spouse so you’re on the same page, especially if you have children from previous marriages.

Trinity has a 401K, Roth IRA, brokerage account and extra cash in the bank and wants to know what she should withdraw from first when she retires. It really depends, but we typically advise clients to take bits and pieces out of different buckets each year, and that amount can change from year to year.

We also answer questions about what to do with old life insurance policies and how to retire early financially when you can’t stand your boss. To hear more, you can listen to the full episode or use the timestamps below to find a specific segment.

[1:37] – Forced into early retirement

[3:12] – Rule of 100

[4:29] – Finances in a second marriage

[5:49] – Which account should I withdraw from first?

[7:55] – Should I cash out life insurance?

[9:56] – Can I retire early?

Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!


 

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