January is full of good intentions. We often see new budgets, new goals, and packed gyms that won’t stay that way for long. We kick off the year by breaking down how to set financial resolutions you won’t abandon – focusing on simple habits, controlling what you can control, and progress (over perfection).
Episode Transcript:
Intro/Closing: 0:02
Welcome to the Real Talk Retirement Show, where we explore the financial side of retirement and beyond. Whether you’re currently retired or planning for the future, we offer real, relatable conversations about money and personal finances. Most importantly, we dive into all these topics using Real Talk. Now, let’s get real about your money and your retirement.
Brian Graff: 0:28
Hello, friends. We are back with season two of the Real Talk Retirement Show. Tracy, can you believe we’ve already wrapped up a full year with this podcast?
Tracy Burke: 0:37
How about it when we haven’t been canceled?
Brian Graff: 0:40
We have not been canceled yet, which is absolutely amazing. We’ll take that. We will take that every day. Uh so we’re we’re actually excited. I don’t know about uh you listeners out there, but Tracy and I have been having a lot of fun with this podcast, and we couldn’t wait to get back in the studio and start recording some episodes for season two for everybody out there. So hope you’re enjoying the ride so far. And hopefully we’re getting a little bit better every time, Tracy. That’s the that’s the goal, anyway. Uh, Tracy, you know, every January, as we start to dive right in here, uh, we find that uh gyms, right? Gyms start to become overcrowded. You know, at least at least so I’m told, if I’m being truthful. Probably haven’t seen the inside of a gym in maybe 10, 15 years, but you know, that’s beside the point. But but I think uh the the word on the street is gyms start to get really crowded in January. Um, calendars become a lot better organized than maybe they were the last few months. And let’s face it, you know, our bank accounts uh are still recovering sometimes from December. Uh and by the time February rolls around, though, that treadmill at the gym, not quite as busy as it used to be, right? It becomes a little bit lonely. The budget is, let’s say, maybe not doing as well as we would like. So today, Tracy, we’re gonna fix that for everybody, right? Uh, we’re gonna be talking about financial New Year’s resolutions that hopefully don’t fade away like my mother-in-law’s leftover Christmas cookies.
Tracy Burke: 1:58
Yeah, that’s right, Brian. Absolutely. Um, you know, I think I’ve may have had too many of those cookies over the holidays. Uh, but like many others, one of my resolutions is to get in better shape physically, right? And shed a few pounds. Uh so Brian, I’m sure you have a few resolutions yourself, right?
Brian Graff: 2:15
Yeah, the typical ones, Tracy. I too would like to shed a few pounds, maybe get in better overall health. And uh one of the other ones I’m really gonna focus on is becoming a better podcaster. You know, I know some of you listeners are thinking, oh, come on, Brian, how can you get any better than you you already are? But I think there’s a little bit of room there for improvement. So that’s gonna be my uh my resolution for this year. Well, today, just so we don’t offend anyone out there, we’re gonna stick to financial resolutions specifically. Uh now that we’ve hit January. So, according to various studies, over 80%, 80% of New Year’s resolutions fail by February. And those financial ones that we’re gonna be talking about, some of those are the first to slip. But guess what? People who set specific, measurable financial goals are far more likely to achieve them. I know we’ve said that in other podcasts, Tracy. So the same thing will apply to this conversation as we we talk about resolutions. Um, you know, people who who set these measurable goals hopefully will be okay in in the end. Uh, so this episode is going to show you how to be in that successful group of people, that that 20% that don’t fail on their New Year’s resolutions.
Tracy Burke: 3:26
Yeah, for sure, Brian. And that sounds really good. You know, well, while some may see it from more skeptical point of view, meaning that, wow, you know, here we go again, another January and and and failed resolutions, you know, having that fresh start every year can really help to provide us with that mindset, right? A mindset shift. And who knows, you know, maybe changing a few financial habits uh for some folks can lead to, you know, freedom, more opportunities, and even reducing some stress, which is always a good thing, right? So uh today, as you mentioned, we have 12 financial resolutions. Sounds like a lot, but we pretty much did one for every month, if you think of it from that perspective for the new year uh that we’re gonna cover today. So let’s jump right in. Uh the these are somewhat quick. Uh so kick us off with the first one, Brian.
Brian Graff: 4:13
All right. So resolution number one. Uh let’s all try to write down on paper, take pen to paper, our most important financial goals. Um, this can definitely be an important starting point where you’re compiling a list of really what you want to accomplish in life. Again, we’ll focus on the financial side of things, but lists are great for all of those uh life accomplishments that you’d you’d like to see yourself achieve. So whether that be to retire early, uh buy a vacation home, travel, start a business, or something else, perhaps. But by committing these goals to paper, it really provides a concrete objective that we can strive for and then hopefully eventually attain. Uh also consider working with an advisor. Remember, that’s super important if you really want to put together a comprehensive financial plan, or if you’ve already done so, if you’ve already engaged with an advisor, revisit that plan with your advisor to make sure it is still viable.
Tracy Burke: 5:07
Yeah, that that’s a great way to sort of get started, right? The first one. So the second one, um sort of building on top of that, is to take a look at your investment portfolio, really review your current investments as well as your risk tolerance. So this is something that certainly should be done at least annually, if not more often. Um, but what a better time of the year, of course, to do it than at the beginning of the year. So here’s what I would think, you know, when you’re reviewing your current investments, take a look at your performance. Just make sure it’s appropriate for your conditions. Of course, everybody would like greater performance, but you know, if you’re in 50% stocks and 50% bonds, you know, take what that gives you. Um, you know, don’t be upset if you don’t have the same performance as somebody that has 100% stocks and the stock market did really well, right? Just make sure it’s appropriate for your asset allocation and your situation. And then that level of risk, and we talk about that a lot, right? We call that risk tolerance, just confirming and making sure that that’s appropriate, uh, you know, that your willingness for risk is so very important and often overlooked. So for a lot of folks, you know, especially for those saving for retirement, it can be um, you know, important to consider reducing that equity exposure as we get closer, closer to the time we need to start taking money out. So again, reviewing those investments, including making sure your your level of risk is still appropriate.
Brian Graff: 6:38
Excellent. And that takes us to resolution number three. Create a budget and consider tracking your spending. Now, I know this isn’t a very popular thing to do, budgeting, not a lot of fun, uh, but it doesn’t have to be overcomplicated, I promise, to develop a plan of how your income will be distributed between spending and saving. It doesn’t have to be complex. Uh, and by tracking your spending, it’s a great way to create awareness of what you are spending and where you’re spending that money. Without having a budget, things kind of get lost. You forget about this bill or this subscription. So definitely keep track of it at whatever detail level you are comfortable with. And you know, there’s a lot of good apps out there, Tracy. Winab, every dollar, mint, just to name a few that can help you with tracking your spending. Or you can really be crazy like Tracy and build a fancy Microsoft Excel spreadsheet and list all your expenses each month by retailer provider. Tracy, you you tend to go a little overboard, wouldn’t you say?
Tracy Burke: 7:38
I would say that that’s that’s very true. And I do like my spreadsheets. Um, so so that takes us into number four. Uh, as you’re tracking things, um, you know, take a look at your debt levels. So, really, resolution number four is review and manage your debt level. Now, as as we think about debt, keep in mind that not all debt is bad, but it is important to have that good grasp on how you’re paying down your debt. And this once-a-year check in particular, it’s a great time to just to make sure you’re still on track. Um, you know, most people these days have credit card, um, you know, of course, and credit cards, you know, that debt, so to speak, it’s so, you know, it’s just imperative, of course, to pay off every single month, right? So you’re not carrying debt and incurring those high interest rates. Um, if you are in a position that you are carrying debt, uh, especially on multiple cards, consolidate to the lowest rate card and always pay more than that minimum each month. Uh, and and just try to get in that mindset, make a commitment to pay that off ASAP, right? Uh, and you know, we have confidence that that you can do that, right? Develop a plan on it. Uh, the other common debt as we think about that many or most people have, at least at some stage in their life, is mortgage, right, on their home. Um, so many folks, uh at least folks that I talk to have insanely low mortgage rates that that you know, even in in recent years, whether they bought a place, you know, in the past five to six years or they refinanced. Um, if you don’t have a really solid interest rate, you know, just track where the interest rates are and in the future consider refinancing if that opportunity presents itself. And we know right now, comparatively to you know, likely the past almost 20 years, interest rates are higher for mortgages than they have for much of the past 20 years. So, but opportunities will present themselves likely in the future and just uh manage that when it happens. So, again, uh and if you do refinance, don’t try to extend that life of the current mortgage when you’re doing so. Uh, you know, say you have a 30-year mortgage and you’re in year 13 and you refinance. Don’t start that 30-year clock over, right? Just reset it and continue on uh as you go through. So, debt management, again, something else to check in on.
Brian Graff: 10:05
Absolutely, which takes us to resolution number five. And this maybe falls under the category of easier said than done, but really strive to save more money. Okay. So if you’re able, really try and maximize your retirement plan contributions as much as you can. You know, put that money into some of those tax-deverd retirement accounts. And just so you know, feel free to roll your eyes at me if you if you wish. But if you’re lucky enough to be in a situation where you can do this in 2026, the IRS says that you can save up to$24,500, put it towards retirement. And that’s just your money. That doesn’t include any potential employer contributions you may receive as well. So that’s$24,500. And if you’re old guys like Tracy and me, over the age of$50, Tracy likes to point out that I’m a little bit older, but anyway, um, but if you’re$50 or older, you can actually put in an extra$8,000 of what they call catch-up contributions for a total of$32,500. And another one of those quirky IRS things is that if you fall exactly between the ages of 60 and 63, you may be able to save even a little bit more beyond that$32,500. So, you know, from for most of us, even if you can’t quite max out your savings, definitely challenge yourself to, you know, bump up your contribution rate, put a little bit more into your retirement account year after year. Try not to get stagnant. Raise your account by, you know, one or two percent every January. And even those little adjustments can really make a big difference in the long run. Uh, you know, retirement experts, and we and we feel this way at Conrad Siegel, do recommend that you try and save about 10 to 15%. We lean a little bit more towards that 15% number. So try to save about 15% of your current income each year, so your total annual salary, and put it into those retirement accounts. Remember, that does include that 15% benchmark, does include employer contributions. So you can factor those in as well. Um, and then, you know, when you get to probably within about six to eight years to retirement, hopefully by that time, if you had a family and you had kids, maybe you’re empty nesters now and uh you don’t have quite as many uh financial concerns as you did years ago, really try and bump that up to about 15 to 20 percent or even more, especially if you’re trying to make up for lost time. Uh, you know, if you lack savings and discipline earlier in your career, you know, honestly, the reality is the 10 to 15% benchmark, that may even be a little bit higher. You know, I recommend that 15% for folks in their in their 20s and their 30s. But if you’ve waited until you’re 40, you might want to start out with that 20% rate. But bottom line, don’t get overwhelmed. Uh, do what you can now, make adjustments later, and really focus on finishing strong.
Tracy Burke: 12:51
Yeah. So moving on to number six, it it’s really looking for other ways to save money. You know, Brian, you just talked about how to save through your retirement accounts in particular, but looking for other opportunities to save money. And sometimes this is overlooked, uh, but gonna share just a few of the more common ones. You know, the this first one is probably, you know, very, you know, you’re thinking, well, of course, you know, this makes a lot of sense. But bundling things, uh, your internet, cable, phone service, uh, even insurances, those type of things. But bundling uh some of your services with one provider uh often can provide some discounts. Um, a lot of states allow for um for electricity bills or natural gas bills, some utility bills that you can select or compare generation providers, the generation rates that are there. Um so, you know, this is one I know that I’m just a hawk on. You know, I set my calendar to let me know, like flashing, you know, bright lights when I can make a change, when my sort of window of time comes up. And it’s hard to say how much I actually save, and sometimes it’s probably pennies or dollars, but uh, but always seems to be worth it, you know, in in the end. Um another thought in saving, trying to save some money, bidding out insurance coverage. I mentioned, you know, bundling it in a provider, but also bidding that out every once in a while. Um, you know, home and auto insurance in particular. Um, you know, as you add family members or different vehicles, uh, you know, every few years, it could be a good idea to try to get quotes from other providers there. Um, and and with the auto coverage as well, also just make sure that your current coverage is appropriate to your current conditions. So a lot of um, you know, some folks, maybe pre-COVID days that had longer rides to work, um, or maybe even were when they were working and they haven’t made those changes to their policy after they’re working, you know, insurance companies have different uh rates for the number of miles round trip you’re driving to work every day. So if you change jobs or just conditions there. Um there’s just a lot of different things and just reviewing those. And then the last one, um, you know, sometimes this can really creep up on you. Uh, you know, I know I sometimes look at my credit card bill and I see some subscriptions that are on there, these recurring monthly costs. Uh, maybe it’s, you know, on some of the TV um, you know, uh components that are out there, uh, the Netflix and so forth of that nature. So just review all the subscriptions you have. Uh so check those credit cards and question some of those recurring ones of hey, are folks in the household still using those? And uh are they still needed?
Brian Graff: 15:37
Absolutely, Tracy. And that last one, the subscriptions. I am definitely guilty of having way more than I need. Every app that’s out there as far as like entertainment channels. I feel like I have it. And uh, you know, I did find one just a couple weeks ago. Uh there was like a$50 uh payment that came out of my account. And I’m like, what is that? And it turns out it was an app that one of my kids was using in high school. I think it was Quizlet or something, something of that nature. Uh, but you know, this this kid is now a uh junior in college. I’ve probably been paying$50 extra for the last three years. So you really got to pay attention, monitor it, and uh know when it’s time to uh to get rid of certain ones for sure. Uh they can they can drive you crazy. So just make sure you know what’s out there. Uh resolution number seven, be prepared for a financial emergency. Okay, it’s gonna happen, right? Throughout our lifetime, something is gonna come up that we weren’t expecting. For most of us, gonna it’s gonna happen a few times throughout our life. So having an emergency fund can definitely save you big time from going into debt or you know, rating your retirement savings when the unexpected occurs. Tracy just talked about how we want to avoid credit card debt at all costs. We certainly want to avoid dipping into our retirement accounts for an emergency. We’re just really robbing our future selves of all that uh stream of retirement income. So I would definitely urge everyone to consider having about three to six months set aside worth of living expenses, you know, if an emergency would occur. And keep that money in liquid assets, something where you’re not taking very much risk at all, if any, uh, and that’s going to be available to you as soon as that emergency occurs. And having that, you know, cash cushion, if you will, uh really provides just as important as anything, that that peace of mind that we all are longing for.
Tracy Burke: 17:21
Absolutely. So, number eight, here’s another fun one. You were talking about budgeting, and people love to budget. Uh, something else people love to do is talk about their own demise, right? So uh creating or updating a will, thinking about your own estate planning. And the amount of folks that we’ve heard say, oh, you know, I’m 60, I’m far too young to think about that. Virtually everybody should have a will, you know, that is that’s super critical. And again, we get it. You know, no one likes to think about death, but having a will and other estate planning documents, you know, that that are up to date, it just ensures that your assets will be divided according to your wishes. And we know that life is short. Nobody knows when their time is up. So have being prepared is super important. Uh, I mentioned some of the other accompanying documents to the will, uh, a power of attorney document, really a financial power of attorney, uh, healthcare directives, uh, healthcare power of attorney. All those things are normal and advised as well. And then if you have children under the age of 18, um, making sure that you have named a guardian in those documents, really in your will, um, you know, to take over your children in the event of a simultaneous death with your spouse. Uh, nothing, you know, this is not something anybody wants to ever think of, but reality, those situations uh, you know, very rarely, but can pop up. Um, and and if you don’t name those guardians, basically the government decides the fate of where those children end up. And I don’t know about you, Brian, but I don’t want the government deciding uh any more than they they already do. So uh yeah. So uh again, and then finally, if you already have a will, and and hopefully the answer might be yes. If it’s not, you know, you need to get one and make that a top priority. But if you have a will, just pull it out, review it annually. You know, um my wife’s one of her favorite activities, of course, is when I pull out that that will on an annual basis. I normally do it between Christmas and New Year’s. So, you know, uh that just recently happened, of course. But I, you know, I force her to have a conversation about it. So again, that’s some pretty fun times in the Burke household, as you can imagine, Brian.
Brian Graff: 19:43
Yeah, how come I haven’t got an invitation to those uh conversations, Tracy? I’d love to bring some some eggnog and join in on those fun topics. So since Tracy’s definitely brought the mood down already, thanks a lot, Tracy. Might as well keep it rolling, right? So uh again, you know, continuing with that idea that nobody wants to think about their own. Mortality. These are not fun topics, but it’s but it’s also super important to not only have a will, but to also review your beneficiary designations that you have in place with all of your different uh financial plans. So if you neglect to update your beneficiaries, it really could have devastating results for your loved ones. You know, attorneys say that it happens more than you would think when a person dies and all the assets or their insurance proceeds go to a distant relative or even worse, an ex-spouse. Imagine that. You know, we do we do see it happen more often than you would think. So you want to make sure you’re constantly reviewing who your beneficiaries are on your accounts, if anything would happen to you. And you know, as major life events take place, if you get married, if you get divorced, have cricket kids, grandkids, always remember to review your beneficiary designations and make adjustments as those life events take place. Absolutely.
Tracy Burke: 20:55
So number 10 is is reviewing your insurance coverage. So earlier we talked about you know bit bidding out or putting uh you know, taking a look at your insurances and bundling them and some other things, you know, seeing if you can get better rates. You know, this is a quick one, but super important, right? Just ensure that your coverage for your insurances. So we’re talking really about your life insurance, your health insurance, uh, your disability income insurance, your auto insurance, your homeowners insurance. Uh, and some folks have what’s called umbrella insurance coverage, making sure all of those uh items are just appropriate. You have the right amount of coverage, right? Um, you know, as a side note, I don’t know how you feel about this, Brian, but sometimes I get it easy with that life insurance one. Um, you know, I have some life insurance on my noggin, and uh, you know, I know it’s important for that future financial security for the family, but it feels a bit like a bounty on my head at times, right? And I’m always looking over my shoulder when my wife’s around, since she’s the one that’s gonna benefit the most when I croak. So just saying. Tracy, totally know the feeling, my friend.
Brian Graff: 22:03
You’re not alone, you’re not alone there. All right, we’re getting there, and we’re gonna we’re moving on to number 11 now, everybody. And this is a a little bit more of a cheery one. Think about charitable giving. You know, many people do include giving to charities uh within their budget, where they can really give back to their communities or uh organizations that are that are super important and meaningful to them. And when we relate that back to your financial situation, I mean, itemizing the tax deductions on your tax form, you can actually deduct those donations for income tax purposes. Okay, so something to consider based on how you you file your taxes. And you know, charitable giving can also be an important part of an estate plan, uh, both for lifetime giving and bequeaths after death. You know, Tracy put that uh word into the script today, and I really wanted to say it, so I I left it in there. But uh, you know, and besides donating just money, you can consider donating other things like blood, clothes, toys, or or even your time. What’s more important than your time? So uh charity is a great thing to give back to.
Tracy Burke: 23:06
Yeah, absolutely. And uh especially at this time of the year. So the final one, number 12. Um, just you know, this is a sort of a big picture. We we started off with writing out your goals. Um, you know, that was number one. Now, number 12 is just being more committed to a greater awareness of your financial situation and tying on to that, being educated, listen to every one of our podcasts this year. So we made number 12 as the the uh financial resolutions, of course. But, you know, of course, we would love that, but but you know, you know, really renewing your awareness of your situation, as I mentioned. Uh, if you’re married, make a point to talk about finances with each other and make sure that you’re all on the same page, right? Um, if you’re looking for some good resources, and and I do a lot of reading on books, and a lot of those regard uh money. Uh, one that that is very popular that’s out there is is Morgan Housel’s book, uh, simply called Psychology of Money. Uh, you know, as it sounds, it covers some of the more emotional elements that sometimes can uh derail sometimes our our financial situations, right? Uh so highly recommended book to potentially check out. Another great one, uh, and this is uh a brand new book, but it’s called Your Money by Carl Richards. So uh a brand new book, and as a teaser to an upcoming episode uh here in the first uh couple months of the year, we’re thrilled to have Carl join this very podcast as a guest to talk about all of these things.
Brian Graff: 24:43
Yeah, can’t wait for that one, Tracy. Looking forward to have Carl join us and getting his thoughts on uh all these important topics. So, yeah, looking forward to seeing Carl. And by the way, that uh that book you recommended, The Psychology of Money by Morgan Housel. Tracy, uh, how long have you been at Conrad Siegel now?
Tracy Burke: 24:58
This is your number Yeah, about 18, I think.
Brian Graff: 25:01
Okay, I was just gonna say, I remember. I was already here at the time, and I believe you kind of gifted that to all of us, I think uh early on, or you know, when at some point in time, and I still have a copy of that uh near my uh my bedside there, believe it or not. And that is one of the few books that I’ve read in the last 25 years. I probably read three, and I can definitely say that the uh the psychology of money is one that is is worth your time for sure. So, yeah, thanks for that gift that keeps on giving. There you go. All right, so listen, we made it. We we got through all 12. So as we wrap up, let’s think about some action items as we always do. And we’ll start by saying, you know, the obvious, make a commitment to review these items. And if you’re married, do it together with your spouse. You’re in this together, right? So whether you tackle one of these items per month or you know, you do all of them at one time, just commit to a better overall financial situation for yourself and your family in 2026. Make that commitment.
Tracy Burke: 25:57
Absolutely. And and and our uh sort of commitment to you or effort is going to be, you know, trying to help give you resources to make that you know easier on you. So we do have a workbook uh that we’re going to share in the uh show notes section. So go out and find it there. And it really tackles many of these items we just uh talked about. So again, go to the show notes section of the podcast and you’re gonna find a piece that’s called Am I On Track? It is just what it sounds like. It’s just a great guide to be more organized and tackle some of these important issues.
Brian Graff: 26:30
Yeah, great piece. Go get it, everybody. And then finally, if you haven’t done so already, remember to subscribe to our podcast uh using one of the various platforms you can find us on, whether that’s Apple, Spotify, Google, or other places. Uh go ahead and do it. And that way, Tracy and I will just kind of automatically pop into your life each and every month, right? What else could you want? Um, so remember, everybody, as we wrap up, please reach out to us anytime with questions and comments. We would absolutely love to hear from you. You can reach us at podcast at conradseagle.com. We are here to help. And remember to share this content with your friends and families and give us a five-star review and subscribe if you haven’t already. Uh, but don’t do it out of pity. Make sure you you love the content, then give us that five-star review. All right, everybody, looking forward to to more episodes to come, including our episode with Carl Richards. Uh, Tracy, happy new year, and we’ll talk to you again soon.
Intro/Closing: 27:25
Thank you for tuning into today’s show. The Real Talk Retirement Show is created and produced by Conrad Siegel, an advisory firm that specializes in helping people prepare for retirement and beyond. If you want to learn more about our work or meet the team, you can visit conradsegal.com. Information on this show is for educational purposes only and should not be considered personalized investment, tax, or legal advice. Before making decisions, you should consult with the appropriate professionals for advice that is specific to your situation.