The Stacking Benjamins Show - Episode SB1639: Redefining Retirement with Benjamin Brandt

Release Date: February 3, 2025

Hosts: Joe Saul-Sehy, OG, and Doug
Guest: Benjamin Brandt, Certified Financial Planner (CFP)
Sponsor Highlights: Navy Federal Credit Union, State Farm, Greenlight, Sweet Tarts

Introduction

In this enlightening episode of The Stacking Benjamins Show, hosts Joe Saul-Sehy, OG, and Doug welcome Benjamin Brandt, a Certified Financial Planner from North Dakota and author of the book "Retirement Starts Today." Recognized for his fresh perspectives on retirement planning, Benjamin delves into redefining what retirement means beyond the traditional clichés. The conversation navigates through the psychological transitions of retirement, the pitfalls of conventional financial planning, and the importance of aligning retirement goals with personal passions.

Challenging Retirement Clichés

Core Discussion Points:

• Traditional views of retirement often center around activities like fishing, golf for men, and spending time with grandkids or traveling for women.
• These clichés can lead to dissatisfaction when retirees find these activities unfulfilling after the initial excitement wears off.

Notable Quotes:

• Joe Saul-Sehy [09:37]: "Fishing and golf."
• Benjamin Brandt [10:12]: "The first 18 months in retirement is this huge euphoria. After that, many experience deep depression wondering, 'Is this it?'"

Insights: Benjamin emphasizes that many retirees, after an initial period of joy, struggle with finding meaning and fulfillment. This dissonance often stems from a lack of planning beyond financial independence, highlighting the need for purpose-driven retirement planning.

The Reality of Retirement Transition

Core Discussion Points:

• The "honeymoon phase" of retirement lasts approximately 18 months, after which many face an identity and purpose crisis.
• Retirees often realize that managing finances alone does not equate to a fulfilling life post-retirement.

Notable Quotes:

• Benjamin Brandt [11:43]: "Managing money correctly is not a fulfilling retirement."
• Joe Saul-Sehy [12:16]: "The financial industry focuses on not running out of money, but the regret piece is way bigger."

Insights: Benjamin critiques the financial industry's narrow focus on longevity of funds, arguing that this approach neglects the emotional and psychological aspects of retirement. He advocates for a more holistic approach that balances financial stability with personal fulfillment.

Introducing Benjamin Brandt's Perspective

Core Discussion Points:

• Benjamin introduces the concept that effective retirement planning should begin long before the actual retirement phase.
• The importance of experimenting with retirement-like activities while still employed to gather valuable insights and data.

Notable Quotes:

• Benjamin Brandt [17:42]: "Corey and Becky are real people defining what retirement can look like by experimenting now."
• Joe Saul-Sehy [21:11]: "Retirement is about now, not just the future."

Insights: By sharing the stories of clients Corey and Becky, Benjamin illustrates how proactive experimentation with retirement activities—such as training for a Mount Kilimanjaro hike—can help individuals discover their true passions and avoid future regrets.

Core Concepts from "Retirement Starts Today"

Core Discussion Points:

• Minimum Viable Product Math: Establishing a basic financial framework that covers essential needs allows retirees to explore passions without financial anxiety.
• Dream Big, Then Adjust: Encourages retirees to envision their ideal lifestyle first, and then tailor their financial plans to support those dreams rather than constraining the dreams to fit financial limitations.

Notable Quotes:

• Benjamin Brandt [31:25]: "Dream like you're Jeff Bezos and then find a Costco version of it."
• Joe Saul-Sehy [33:14]: "Start out like we're 13 years old and explore what excites us."

Insights: Benjamin advocates for a shift in retirement planning from a math-first approach to a dream-first methodology. By prioritizing what truly excites and motivates individuals, financial plans can be more effectively aligned to support a fulfilling retirement lifestyle.

Practical Steps for Planning Retirement

Core Discussion Points:

• Experimentation: Engage in small-scale trials (e.g., renting an RV before purchasing) to test retirement activities and interests.
• Data Collection: Gather both positive and negative experiences to inform and refine retirement plans.
• Personalized Planning: Develop a retirement plan that reflects individual passions and interests rather than adhering to societal norms.

Notable Quotes:

• Benjamin Brandt [29:44]: "Take small risks of time, money, and energy to figure out what you like and what you don't."
• Joe Saul-Sehy [30:20]: "Don’t buy a quarter-million-dollar RV without knowing if you love it. Rent first."

Insights: Benjamin emphasizes the importance of practical experimentation and data collection to avoid costly mistakes in retirement planning. By testing interests and activities beforehand, retirees can make informed decisions that align with their true passions.

The Role of Financial Advisors and Trust

Core Discussion Points:

• Trust Over Performance: A new survey highlighted that 72% of investors prioritize trust over portfolio performance when selecting a financial advisor.
• Building Trust: Establishing a trusted relationship with advisors involves mutual understanding, open communication, and alignment of personal values.

Notable Quotes:

• Investment News [48:46]: "Trust matters more than portfolio performance."
• Joe Saul-Sehy [54:00]: "I want someone who will tell me when I'm wrong."

Insights: The hosts and Benjamin discuss the critical role of trust in the client-advisor relationship. Trust builds over time through consistent, honest communication and advisors who are willing to challenge clients constructively to ensure optimal financial decisions.

Monte Carlo Simulations and Its Critique

Core Discussion Points:

• Monte Carlo Simulations: A tool used to predict the probability of different outcomes in investment portfolios by simulating various market scenarios.
• Benjamin's Critique: While useful, Monte Carlo simulations often emphasize numerical outcomes over personal fulfillment, potentially leading to decisions based solely on financial metrics.

Notable Quotes:

• Benjamin Brandt [37:06]: "I hate the Monte Carlo analysis. It focuses too much on numbers, leading to regret."
• Joe Saul-Sehy [44:19]: "It's fun to think of it as a deck of cards, shuffling years and returns, but it misses the personal aspect."

Insights: Benjamin argues that relying heavily on Monte Carlo simulations can distract retirees from their personal goals and passions. He advocates for a balanced approach that integrates financial planning with personal fulfillment to ensure a holistic and satisfying retirement experience.

Headline Discussion: Trust Over Performance

Core Discussion Points:

• A survey by Investment News, authored by Leo Almazzora, reveals that trust is the most critical factor for investors when selecting and staying with a financial advisor, surpassing portfolio performance.
• The hype around portfolio performance often overshadows the fundamental need for a trusted advisor.

Notable Quotes:

• Joe Saul-Sehy [48:55]: "Trust is foundational. You need to believe your advisor has your best interests at heart."
• OG [53:31]: "It's really about process and trust. Systems and support make the difference."

Insights: The hosts analyze the survey results, discussing how investors seek advisors who can offer holistic financial perspectives and are trustworthy. They emphasize that the advisor's ability to build and maintain trust is more influential on client retention than their ability to outperform the market.

Conclusion and Key Takeaways

Core Discussion Points:

• Retirement Planning as an Ongoing Process: Retirement should not be viewed as a distant goal but as a present journey shaped by current actions and decisions.
• Holistic Approach: Balancing financial security with personal fulfillment leads to a more satisfying retirement experience.
• Trust in Advisors: Establishing trust with financial advisors is paramount for long-term financial well-being.

Notable Quotes:

• Doug [66:02]: "Don’t tell Joe's mom you're down—she’ll have you cleaning floors instead!"
• Joe Saul-Sehy [69:43]: "Be good money."

Final Thoughts: Benjamin Brandt’s insights encourage listeners to redefine retirement by intertwining financial planning with personal passions and trust-based relationships with advisors. By adopting a proactive and holistic approach to retirement planning, individuals can ensure a fulfilling and regret-free retirement journey.

Additional Highlights

• Personal Anecdotes: The hosts and Benjamin share humorous and relatable stories about experimenting with retirement ideas, such as renting RVs or pursuing stand-up comedy, highlighting the value of experiential learning.
• Upcoming Events: Announcements about meetups in Seattle and South Lake Tahoe, encouraging community engagement and further learning opportunities for listeners.
• Practical Advice: Emphasis on starting retirement planning early, experimenting with interests during the working years, and prioritizing trust when selecting financial advisors.

For More Information:

• Book: Retirement Starts Today by Benjamin Brandt. Available on Amazon.
• Podcast Website: stackingbenjamins.com for show notes, team details, and additional resources.
• Upcoming Meetups: Details available on the podcast website, inviting listeners to join in-person or online events.

This episode is produced by SB Podcasts, LLC. All rights reserved. For entertainment purposes only. Consult a financial advisor before making any financial decisions.