Jul 8, 2017
Joel talks about the two different groups of people and how they approach planning their retirement.
Main Questions Asked:
- Let’s talk about getting your retirement into the fast lane.
- How should we address inflation, taxes, and the cost of healthcare? What about our essential expenses? What is the importance of preparing a budget before retirement?
- How do you plan for surprise expenses?
- How should we maximize our social security benefits?
Key Lessons Learned:
Retirement
- It’s easy to procrastinate on putting on the finishing touches to your retirement plan, especially if you’re confident in your approach.
- If you put a plan together 3-5 years ago, you have to keep checking to make sure your plan still makes sense.
- Start planning right now.
- Online planning retirement tools are not very effective, having a financial planner that specializes in retirement help review your plan will get you better results.
- Inflation is essentially the loss of your purchasing power, higher taxes, and the potential of long-term health care costs need to be accounted for in your retirement plan.
- The missing piece in many retirement plans is how you’ll generate income in retirement, especially in an environment with low interest rates.
- You need to look at your social security as an asset. There is no right time for everyone to take their social security benefits.
Expenses
- For those who a larger net worth, you may be able to rely on dividends from a stock portfolio.
- For most people, you will need a blend of income from stocks and other sources.
- Social Security and pension incomes may not cover all your expenses, buying bonds, annuities, or real estate may be the right option to cover the shortfall.
- Prepare a budget before you enter retirement, save first and then spend the rest ie. Save 15% of your annual income and don’t worry about the rest.
- If you have your needs taken care of in the future feel free to spend the rest.
- Health care is the most common unexpected expense but there are plenty of others, create a contingency account that is meant specifically for unexpected expenses.
- Good retirement planning includes withdrawing from the right accounts in the right order.
Links To Resources Mentioned
Money Map Retirement Review 1-800-705-1232
Thank You For Listening