“The trouble with retirement is that you never get a day off.” - Abe Lemons

We always love having Christine Benz from Morningstar join us! She's been helping people make smarter money decisions for years—whether it's retirement planning or managing portfolios. In this conversation with the Stacking Benjamins crew, Christine walks us through some key financial strategies, shares her take on handling market ups and downs, and offers practical tips that can help you reach your goals. If you're thinking about retirement or just want to improve your financial habits, you won’t want to miss her advice!

The 411 On Americans' Retirement Savings:

• 45: Percentage of Americans who have nothing saved for retirement.
• 81: Percentage of the workers who have access to a workplace 401(k) plan that participate in the plan.
• $426,000: Average retirement savings for Americans aged 65+.
• 90: Percentage of income provided by Social Security to 40% of retirees.
• 33: Percentage of Americans who are confident that they will have enough money to live comfortably throughout their retirement years.

Latest Stacking Benjamins Podcast Episodes:

Mastering Retirement Planning with Morningstar’s Christine Benz (plus Real Estate Commission Negotiation) SB1575. ​Listen here →​

Turning Goals Into Adventures: Transforming Your Financial Journey (SB1574) ​Listen here →​

Our Headline:

In today's headline, we see serious changes in the way real estate transactions will take place between sellers, buyers, and their agents. What do the changes mean for you if you are looking to buy and/or sell a house? Let's dig in...

More transparency, more regulations

The real estate industry is undergoing significant shifts, driven by a landmark $418 million settlement with the National Association of Realtors (NAR). This settlement aims to bring greater transparency to how real estate agent fees are disclosed, impacting both agents and homebuyers. With new regulations requiring buyers to sign detailed fee agreements before touring properties, the dynamics of real estate transactions are set to change, influencing everything from fee negotiations to the overall agent-client relationship.

• Review agent fee agreements carefully: Before agreeing to tour properties, ensure you understand the agent's fees and services in full. Be proactive in asking for clarification if anything is unclear. Learn more about real estate transaction procedures and fees by reading this piece from the National Association of Realtors (link).
• Consider negotiating agent fees: With the new transparency rules, you have more power to negotiate agent fees that align with your budget. Don’t hesitate to explore options that offer better value. Learn how to negotiate a lower commission fee from your real estate agent by reading this piece from CBS News (link).
• Explore alternative commission structures: Look into new or lower-cost commission models that may emerge in response to the changes, such as flat-fee or tiered service options. These alternatives could save you money. Learn about the different ways that realtors and real estate agents get paid by reading this piece from Forbes (link).

Broader market implications

So what's a Stacker to do? Let's dive into what steps you can take to make sure your next real estate transaction is favorable.

• Stay informed on real estate trends: Follow updates on housing market shifts, including changes in buyer demand, mortgage rates, and new agent fee structures, to make more informed decisions when buying or selling property. Learn how to keep up with the changing trends and demands of the real estate industry by reading this piece from LinkedIn (link).
• Evaluate market timing carefully: With potential market slowdowns, consider whether now is the right time to buy or sell, or if waiting could lead to better opportunities or more favorable pricing. Learn generally when the best and worst time to sell a house is by reading this piece from Bankrate (link).
• Adjust financial planning for changing costs: Factor in how evolving real estate fees and market conditions may impact your overall budget. Be prepared to adjust your down payment, closing costs, or investment timeline based on current trends. Learn how to financially prepare to buy a house by reading this piece from US News & World Report (link).

Mastering Retirement Planning with Morningstar’s Christine Benz (plus Real Estate Commission Negotiation) SB1575

Christine Benz, Morningstar’s Director of Personal Finance and Retirement Planning, is one of the top experts when it comes to retirement and personal finance. With decades of experience under her belt, she shares practical, easy-to-follow advice on how to build a solid financial future. What sets Christine apart is her focus on aligning your money decisions with your personal goals, making her tips helpful for anyone planning for retirement or managing their investments. Her latest book, How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement, is a great resource for Stackers looking to fine-tune their retirement plans.

Retirement Structure & Time Management

Establishing a balanced schedule is key to a fulfilling retirement. Christine Benz discusses the importance of planning structured activities while leaving room for unstructured time to enjoy newfound freedom.

• Calendar Exercise: Christine suggests using a calendar to plan your first month or week of retirement, mapping out how you’ll spend your time. Learn how to create organization and intentionality through planning for the month ahead by reading this piece (link).
• Scheduled vs. Unstructured Time: Christine Benz emphasizes the importance of creating a schedule but also leaving room for unstructured time to relax and enjoy spontaneity. Learn 30 tips for how to structure your days during retirement by reading this piece (link).
• Sabbaticals: Christine shares how taking time off can help rekindle a sense of freedom, like her experience at an antique mall during her sabbatical. Learn how to request a sabbatical and actually get your boss to agree by reading this piece from Ladders (link).

Social Connections in Retirement

Social interactions play a vital role in retirement. Christine explores how both in-person and online communities can help retirees stay connected, with a particular focus on preventing loneliness, especially among men.

• Social Interaction Importance: Joe highlights how loneliness, especially among older men, can be a serious issue and underscores the need to stay connected with a community. Learn seven tips to maintain social connections by reading this piece from US News & World Report (link).
• Technology as a Social Tool: Contrary to many opinions, devices and online communities can positively impact social engagement for retirees. Learn about how technology can help retirees age in place by reading this piece from Kiplinger (link).
• Balance Between Online & In-Person: While technology can help maintain connections, Christine notes that it should complement, not replace, face-to-face interactions. Learn how to balance between digital and face-to-face friends by reading this piece from Liberty University (link).

Phased Retirement

Easing into retirement can provide balance and fulfillment. Christine encourages identifying enjoyable aspects of work that can transition into retirement activities, making the shift smoother and more rewarding.

• Gradual Transition: Christine discusses the appeal of phasing into retirement, reducing unwanted work tasks while focusing on enjoyable ones. Learn about the components of a phased retirement and how to implement your phased retirement by reading this piece from SmartAsset (link).
• Exploring Meaningful Work: People should evaluate their happiest workdays to inform what kinds of activities they can continue doing post-retirement, even as volunteers. Learn how to find meaningful work in retirement by reading this piece from Forbes (link).
• Flexible Approach: Retirement doesn’t have to be a hard stop, and finding a balance between working and retiring fully can provide a purpose. Learn three tips for a smooth transition into retirement by reading this piece from Harvard Business Review (link).

Non-Portfolio Income Sources

Ensuring reliable income streams outside of your portfolio is key to a secure retirement. Christine discusses strategies like maximizing Social Security benefits and considering annuities.

• Maximizing Social Security: It’s crucial to make informed decisions about when and how to claim Social Security benefits to optimize income. Learn eight strategies for deciding when to file for Social Security by reading this piece from Kiplinger (link).
• Annuities Debate: Experts have differing views on annuities, with some advocating for their role in securing steady income and others disliking them. Learn how to decide if a retirement annuity is right for you by reading this piece from NerdWallet (link).
• Diversifying Income: Retirement planning should focus on developing non-portfolio income sources like annuities or side ventures to avoid depending solely on investment returns. Learn seven ways to make extra income in retirement by reading this piece from Bankrate (link).

Retirement Portfolio Management

As retirement approaches, reducing risk in your portfolio becomes critical. Christine advises against waiting too long to adjust your asset allocation, ensuring a more stable financial future.

• De-Risking Pre-Retirement: Christine advises adjusting your portfolio five years before retirement to reduce equity exposure and focus on safer assets like bonds or cash. Learn more about setting your retirement asset allocation by reading this piece that Christine wrote for Morningstar (link).
• Longevity and Equity Exposure: Despite reducing risk, retirees may still need at least 50% of their portfolio in stocks to sustain long-term growth. Learn 10 rules for investing during retirement by reading this piece from US News & World Report (link).
• Inflation Protection: Stocks and real estate are key to outpacing inflation, while bonds and cash are less effective at generating the growth needed for a secure retirement, but are less volatile than stocks and real estate. Learn about the bucket drawdown strategy in retirement by reading this piece from Schwab (link).

The Right Retirement Date

The timing of retirement is highly individual. Christine shares insights on determining the right moment, encouraging a phased approach and thoughtful reflection on when it feels right to step away from work.

• Intuition Plays a Role: Many people “just know” when the time is right to retire, based on personal readiness and goals. Learn eight signs that it is time to retire by reading this piece from Joe's favorite publication, AARP (link).
• Phased Exit Strategy: The option of easing out of work gradually, rather than an abrupt stop, offers a smoother transition. Learn how to transition into retirement by reading this piece from the New York Times (link).
• Not Just a Financial Decision: Retirement shouldn’t be based solely on financial readiness—personal purpose and lifestyle factors are equally critical. Learn how to plan your ideal retirement lifestyle by reading this piece from Ameriprise Financial (link).

Long-Term Care Planning

Long-term care is a crucial but often overlooked aspect of retirement planning. Christine emphasizes the importance of early planning, whether through savings, insurance, or other strategies.

• Start Early: Long-term care planning should begin in your mid-50s, well before you retire, to ensure you have a solid strategy. Learn how to plan for long-term care by reading this piece from Schwab (link).
• Insurance vs. Savings: Consider whether long-term care insurance makes sense for you, or if setting aside savings for future care needs is a better option. Dig deeper into whether it makes sense to buy long-term care insurance (or not) by reading this piece from Kiplinger (link).
• Holistic Financial Strategy: Incorporate long-term care as part of your broader retirement planning, ensuring it aligns with your overall financial goals. Learn about the four mainstays of holistic retirement planning by reading this piece from Newsweek (link).

Community Engagement & Purpose in Retirement

Aligning retirement spending with personal values is essential for financial satisfaction. Christine advocates for thoughtful spending that reflects what truly matters, rather than following trends or peer pressure.

• Volunteering for a Cause: Many retirees find purpose through volunteering and engaging in meaningful work that benefits others. Christine emphasizes that volunteering can provide structure, fulfillment, and a sense of community while aligning with personal passions. Learn nine tips for volunteering in retirement by reading this piece from US News & World Report (link).
• Building Social Networks: Maintaining and expanding social connections is crucial in retirement. Christine highlights the importance of fostering relationships through community involvement and shared activities, which can enhance emotional well-being and provide a strong support system during retirement. Learn eight ways to build your social network during retirement by reading this piece from LinkedIn (link).
• Physical and Mental Benefits: Their charity work involves outdoor activity and physical engagement, contributing to both physical health and emotional well-being. Learn more about some of the benefits your body and mind receive from volunteering by reading this piece from Harvard Medical School (link).

Purposeful Spending in Retirement

Aligning retirement spending with personal values is essential for financial satisfaction. Christine advocates for thoughtful spending that reflects what truly matters, rather than following trends or peer pressure.

• Align Spending with Values: Christine emphasizes the importance of making spending decisions that reflect what truly matters to you. By focusing on meaningful purchases and avoiding unnecessary expenses, retirees can enjoy a more fulfilling life while ensuring their financial resources are used in ways that align with their personal values. Learn how to align your money with your values by reading this piece from Forbes (link).
• Avoiding Peer Pressure: Christine encourages retirees to be mindful of external influences when making financial decisions. Instead of following what friends or peers are doing, it’s important to evaluate whether certain activities or expenses truly align with your priorities and lifestyle, ensuring a more personalized and satisfying retirement. Learn how to create habits for more conscious spending by reading this piece from Psychology Today (link).
• Intentional Financial Choices: Retirees should carefully choose where they allocate their financial resources, prioritizing experiences and investments that align with their goals. Learn how to prioritize your spending decisions by reading this piece from PenFed (link).

Are YOU ready to master your retirement plan?

If you're ready to get serious about creating a financially and personally successful retirement plan, grab your copy of Christine's hit new book, How to Retire: 20 lessons for a happy, successful, and wealthy retirement.

Mom's key takeaway

I know that I keep on you to make smart decisions with your money: spend less than you earn, save and invest with a plan, think twice before accepting Neighbor Doug's invite down to the Sizzler, and stop sinking money into that piece of junk El Camino. But there's so much more to successful retirement planning than just mastering the money aspect...be sure you live a meaningful and happy life with those you love.

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A huge thanks to Christine Benz for mentoring all of us today! Be sure you take control of your finances and create the retirement plan that works for you.

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