#562: More than 90 percent of people who ask to get their credit card annual fee reduced are successful. Yet most people never ask.  Why? They assume the answer will be no. Matt Schultz, the author of “Ask Questions, Save Money, Make More,” joins us to explain the psychology and tactics behind successful negotiation.  The key insight: companies want to keep your business. Banks, employers, and service providers invest in long-term relationships because it's more profitable than constantly finding new customers.  This gives you more leverage than you might think. For credit cards, Schultz points out that calling the retention department directly (rather than general customer service) often leads to better results. He shares his own experience of getting his $600 annual fee cut in half just by making a yearly call. With mortgage negotiations, Schultz suggests getting quotes from 3-5 lenders on the same day, since rates change frequently. A quarter-point rate reduction on a $360,000 mortgage saves $20,000 over the life of the loan. The fees themselves can differ by $5,000 between lenders. When it comes to workplace negotiations, Schultz recommends keeping a weekly log of your accomplishments. Note both your regular duties and times you went above and beyond. This creates a strong foundation for salary discussions. The most effective negotiations frame requests as win-win scenarios. Instead of just asking for tuition reimbursement, explain how additional education will help you contribute more to the company. Rather than demanding a lower rent, offer to sign a longer lease that reduces the landlord's vacancy risk. Schultz emphasizes building relationships during negotiations. The person at the call center has likely dealt with angry customers all day. Being pleasant and making a human connection can lead to better outcomes. The interview also covers negotiating with family members about money, choosing when to negotiate versus pay full price (like at charity shops or with small businesses), and how to time requests effectively.  The common thread: success comes from understanding the other party's interests and finding ways to align them with your own. This episode will show you how to save hundreds — or thousands — in your regular spending, simply by asking.  Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. (0:00 Intro: Most people fear asking for discounts/negotiations (1:37) Keep weekly notes of work accomplishments for better negotiations (3:38) Companies want long-term customers - use this as negotiating leverage (6:04) Credit card fee negotiations - 90% success rate when asking (8:36) How to negotiate mortgage rates and compare lender quotes (13:15) Open-ended questions get better results than yes/no questions (19:41) How to handle pushy mortgage reps who bash competitors (26:41) Tips for millennials who hate phone calls but need to negotiate (31:17) Framing tuition reimbursement as benefit to company (39:19) Building rapport during negotiations vs being aggressive (44:42) When to walk away from difficult negotiations (49:20) Negotiating with small businesses vs large corporations (54:53) Red flags in workplace negotiations (58:38) How companies signal if they value employee growth (1:06:38) Final thoughts on customer lifetime value and negotiating power For more information, visit the show notes at https://affordanything.com/episode562 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#560: Bill Bengen, the former rocket scientist who discovered the "4 percent rule" of retirement planning, joins us at the Bogleheads conference in Minnesota. Bengen clarifies that calling it a "rule" is misleading since it doesn't fit everyone's situation. The 4 percent figure came from studying the worst-case scenario since 1926, when someone who retired in 1968 could only safely withdraw 4.2 percent annually. Out of 400+ retirees in his database, that was the only one who had such a low safe withdrawal rate — most could take out much more. Recent research has pushed the "safe" withdrawal rate closer to 5 percent. But Bengen identifies eight key factors that affect how much you can withdraw, including how long you'll be retired and whether you're drawing from taxable or tax-deferred accounts. For early retirees planning for 50-60 years, Bengen says the safe withdrawal rate asymptotically approaches 4.2 percent — meaning even with an infinite time horizon, it won't drop below that. He thinks the common advice to use 3 percent for early retirement is unnecessarily conservative. Bengen shares what he calls the "four free lunches" in retirement planning: 1. Using an equity glide path (reducing stocks at retirement, then increasing later) 2. Diversification across asset classes 3. Regular portfolio rebalancing 4. Slightly overweighting higher-returning assets like small-cap stocks When it comes to market drops versus inflation, Bengen has clear advice: Don't panic during bear markets — they typically recover. But if you hit extended high inflation early in retirement, it's time to "head for the bunkers" and cut expenses drastically. Beyond finance, Bengen shares his excitement about space exploration as a former rocket scientist who graduated from MIT just months before the moon landing. He hopes to live long enough to see humans reach Mars and believes space tourism helps people appreciate Earth's beauty and fragility. The interview ends with a light-hearted discussion about whether Pluto should still be considered a planet (Bengen still calls it one, out of habit) and speculation about future tourism to Saturn's moon Titan once the sun's expansion makes it warmer in a few hundred million years. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. 0:00 Paula introduces Bill Bengen, creator of the 4% withdrawal rule 2:19 Bengen explains how the 4% rule represents a worst-case scenario from 1968 10:14 Bengen warns against using a fixed percentage withdrawal method, as it could lead to dangerously low income in down markets 17:32 Discussion of the "smile" pattern in retirement spending - high at start, dips in middle, rises at end for medical costs 23:22 Bengen shares the four "free lunches" in retirement planning, including equity glide path and diversification 34:25 Conversation shifts to bonds and stocks no longer being inversely correlated in 2022 35:44 Deep dive into Black Swan events and how to prepare for unpredictable market crashes 42:14 Bengen advises when to panic (inflation) and when not to panic (bear markets) during retirement 49:20 Analysis of spending categories that rise faster than inflation, like healthcare and housing 51:27 Bengen discusses graduating MIT in 1969, just before the moon landing 51:56 Conversation turns to current space exploration and plans for Mars missions 53:39 Bengen speculates about future tourism to Saturn's moon Titan 54:17 Light-hearted debate about Pluto's planetary status Resource Mentioned https://affordanything.com/377-how-i-discovered-the-4-percent-retirement-rule-with-bill-bengen For more information, visit the show notes at https://affordanything.com/episode560 Learn more about your ad choices. Visit podcastchoices.com/adchoices