Episode Details

Questions From the Flight Deck:

• What do we do with large retro/bonus checks?
• Is a cash balance plan any good?

Meat of the Mission:

1. Never spend more than they make.
   1. How?
      1. Habit Patterns...
      2. What type of spend
         1. Spend money on fun stuff; Leisure, fun, travel
         2. Don't spend money on stuff that does not add value – cut it out.
         3. YNAB, EveryDollar, or other apps.
         4. https://www.iwillteachyoutoberich.com/
         5. Amelie Riendle Podcast (Flight #44 and Flight #27)
2. Prepare more, plan more...
   1. What do you want to do in retirement? You can only sit on the beach or play golf so much.
      1. The #1 thing people do in retirement is watch television! Michael Finke.
   2. Know your retirement needs...it's expensive!
      1. Start a financial plan now to know your "number" for how much to save to meet your retirement financial goals. Don't let it be a lingering question.
   3. Simulate (software), practice...take some time off and live on the retirement budget.
   4. Deliberation, Planning, and Intention in and of themselves make people happier in retirement: (Michael Finke)
      1. E.g., Those that retire in accordance with their plan vs. Forced retirement.
         1. Both experience happiness, but forced retirement is a delayed happiness (3- 4 years).
      2. E.g., Those that move after retirement...not b/c they move but because they had a deliberate plan with intentionality.
         1. Control vs. Out of Control???
         2. Michael Finke says "Invest in Imagination"
3. Never compromise their health: exercise and eat right.
   1. Exercise not only helps you feel better in retirement but also helps mental capacity and cognitive health.
      1. Flight #58
      2. Exercise and the Brain: The Neuroscience of Fitness Explored.
         1. "Exercise stimulates neurogenesis – the creation of new neurons – primarily in the hippocampus, influencing memory and learning while increasing key mood-regulating neurotransmitters. It also enhances brain plasticity, essential for recovery from injury and aging, and improves cognitive functions such as attention and memory."
      3. Estimated that average couple will need $315k to cover medical expenses in retirement, excluding LTC (https://institutional.fidelity.com/app/item/RD_