It’s That Time Again! A Midyear Summary of Webinar Takeaways

 

It’s hard to believe that we are almost halfway through 2025. It is my custom at this time to provide takeaways from webinars that I have recently attended. 

Below are nine "nuggets" that stood out to me as I reviewed notes taken in my personal learning journal:

Sequence of Returns Risk- This is the risk that negative market returns early in retirement can deplete retirement savings faster than anticipated, potentially leading to financial hardship. One speaker noted that “this risk is non-existent unless you are withdrawing money from savings.”

 

Flipping a Switch- It is very hard to “flip a switch” and start spending retirement savings after decades of saving. It can be emotionally difficult for super-savers and many spend only investment earnings and leave principal intact. Learn more by reading my book, Flipping a Switch.

 

Retirement Shocks- The biggest “shock” to retirees’ finances is a significant long-term care expense. Other shocks are medical and dental expenses, inflation, death of a spouse, family responsibilities, changing tax laws, gray divorce, and frailty and cognitive decline.

 

Retirement Budgeting- Ideally, retirees should use dependable income streams (e.g., a pension, annuity, rent, and Social Security) to pay fixed expenses and variable income (e.g., investment payouts) for variable expenses.

 

Taking Risks- A speaker discussed the “30 Seconds of Bravery Rule” and advised viewers to “just have 30 seconds of bravery, do the thing you fear, and ask for what you want.” The worst that can happen is that people say no.

 

Frozen Credit- Freezing your credit is one of the best security protections you can take. When you need to “thaw” your credit to apply for a loan or utility service, ask the lender which credit bureau they use so you don’t have to unfreeze all of them.

 

Financial Education- Financial education is a lifelong endeavor because there will always be new financial products and tax laws change frequently. With respect to youth financial education, 29 states now guarantee a full semester personal finance course as a high school graduation requirement.

 

Tax Season- When does tax season end? Never! Tax planning is a lifelong process and even extends beyond the grave (e.g., tax-deferred accounts inherited by beneficiaries). Tax planning is also tightly intertwined with investing and retirement planning.

 

Financial Trauma- Trauma can result from the buildup of events over time or from a single event. It is a financial stressor that people do not have resources to deal with. A good analogy is a bank account. Resources are deposits and stressors are withdrawals.

 

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.