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7 Biggest Retirement Planning Mistakes People Regret

we all look forward to retirement it's the time to sit back relax and enjoy the fruits of our labor unfortunately whatever aspirations we may have for our golden years can quickly turn into a nightmare if we make certain mistakes when planning for this phase of life these mistakes are surprisingly common and tend to lead to financial stress and regret with a big impact on quality of life some of these mistakes are 1. not planning for retirement two retiring too soon three relying too heavily on Social Security 4. underestimating health care costs 5. failing to save enough for retirement six taking on too much debt seven not maintaining strong relationships if you want to learn more about these mistakes and how to avoid them subscribe to the channel a new video is coming soon and you won't want to miss it.

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Why Retirement Income is so Important

Canada is getting older in 1980 less than 2 A5 
million Canadians were over the age of 65 around   9% of the Canadian population recently that 
number was over 7.3 million almost 19% of the   population in 1980 the average 65-year-old could 
expect to reach 81 now the average 65-year-old can   expect to reach 86 and there are almost 50% more 
Canadians aged 100 or older than there was two   decades ago basically more Canadians are getting 
older and living longer which poses a significant   challenge for retirement funding traditional 
retirement savings have relied on withdrawing   from a fixed amount of capital with some cash 
flow from CPP OAS and fixed income Investments   like bonds and gic's however as Canadians live 
longer they may expect significant costs down   the road such as long-term care at the same 
time most of these fixed income Investments   are paying at rates below current inflation 
levels and what about running out of capital   some Canadians are faced with the difficult 
and complex choice of delaying retirement or   going back to work compromising the retirement 
lifestyle dreams or passing on the cost of care   to the Next Generation attractive and steady 
monthly income can help simplify things for   retirees Harvest Equity income and enhanced Equity 
income ETFs pay consistent monthly income at rates   above inflation they are RSP and riff eligible 
they hold portfolios of established companies   that remain exposed to market growth High income 
from Harvest Equity income ETFs can help retirees   offset their Rift payments supplement income 
and Live Well into retirement visit our website   for more information on harvest income ETFs for 
retirement Harvest income happens [Music] here

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Top Tips for How to Live a Long, Happy Life in Retirement

time and again we hear about the dangers of smoking unhealthy eating and drinking too much alcohol we know these are unhealthy habits and they put us closer to the Grave that's why if we want to live longer and you want to live longer and happier we need to understand that we need to possibly make some changes to our lifestyle so our question for you today is do you want to start changing your lifestyle in order to live longer if you've said yes keep watching we all know people who lived a hard life they either had a rough time at the end or they died before their time and my dad was one of those guys who died before his time he had a great career he was a wonderful role model and he was a fantastic business leader he was also a marine and that gave him that dose of feeling indestructible but he aged really fast once he retired he ate poorly drank way too much and he quit moving his body you know he died at 80 and I believe had he done what we're going to talk to you about today I believe there's a good chance he'd still be alive which would be nice today we're going to walk you through some tried and true healthy lifestyle habits and behaviors and if you apply these right now as you get closer to achieving your healthier happier life you may live longer what's the first one what do we want to talk about first the first one I feel like we talk about a lot but you can't hear this enough we all love eating but eating a balanced diet is critical to a healthy lifestyle the question right now is what type of food are you eating are you eating junk food or are you eating healthy food you asking me are you asking I'm asking you uh well then I'm just going to say that I eat mostly healthy food definitely go up the rails once in a while I would agree but our body needs a wide range of nutrients in the right amounts so that we can grow develop and it can maintain itself it's you know we have to give it nutrition in order for our body to behave the way we want it to behave but balance is the key right because basically too much or not enough of any nutrient can lead to problems the bottom line is if you're currently living on pizza or even just pure meat every day then it's time to mix some greens into your diet you know our nutritionist or no not a nutritionist our naturopath doctor um Dana Dana tells me that I need to eat seven cups of vegetables a day and when she first told me that I said there's no way but really it really isn't that much and it's just a behavioral change so we have three cups of vegetables with dinner three with lunch and maybe I'm missing one cup we might be probably missing one or two If we're honest for sure they do say that you should get 95 of your food from Plants there are places around the world where people eat like that and they do live longer so basically the real challenge today is for you to you know just push yourself to eat less meat and some more vegetables or at least bring more vegetables and plant products into your diet you know my mom used to say look at your plate and if your plate is a one color palette plate you're in trouble need to add as much color to your plate as you possibly can and you know that sounds really hard and and and it is it is but if you try this when you go shopping only shop the outside perimeter of your grocery store it's where all the Natural Foods tend to be and avoid the aisles see if you can get everything you need just from the perimeter yeah on the perimeter there's your your fresh beef Fish and Chicken your protein all the vegetables are there and we definitely suggest you look for organic it's a little more money but it's better for you and it can be healthy and just take baby steps here but if you pick up a can of food that you want to put into your mouth or a bag of food and you can't pronounce any of the ingredients you shouldn't be eating it because it's chemicals it's just not good for you easier said than done it is but baby steps for sure right another lifestyle change would be this as easy as this two words don't smoke full stop really just don't smoke because smoking is strongly linked to the rise of some diseases and even early death you know my mom smoked three packs of cigarettes a day from the age of 14.

to when she died at the age of not 80 because she went into the home but until 75 years old so 60 whatever 60 plus years three packs a day but she got dementia and in in my mind you know smoking can lead to diseases like that according to Healthline we found this note that men and women who smoke may lose up to 10 years of their lives and be three times more likely to die prematurely than those that never picked up a cigarette but you know what don't be too alarmed there is still time to quit and a chance for you to prolong your life that same Healthline report said quitting smoking in your 60s may add up to 3.7 years on your life in fact you can even still quit in your 80s and provide some health benefits so the long and short of this section is don't smoke or quit smoking yeah so no matter how old you are if you quit smoking now it'll be good for you now the other the other lifestyle change that's really important is to do brain training and you're like what is that well not only do we need to exercise our physical bodies what we need to exercise our brain as well you know I do Wordle every day some crossword puzzles I've tried Sudoku I'm just not very good at it but keeping your mind physically fit can save us from certain conditions that will shorten your lifespan even link to Alzheimer's disease like my mama yep here's a few fun ways that you can exercise your mind I feel like we did this when Luca was here our grandson oh my God we played hours and hours ago goldfish from 5 30 in the morning till 7.

How about learning a new word every day when I read my Kindle or I read my iPad in the morning and there's a word that I don't understand you can just hold it down and look up the definition and I really tried to do that on a regular basis I mean I Journal which you do which is great it's my brain you know you can memorize some lists I'm not good at that at the grocery store by the way so if I don't have it written down it's not coming home but memorize some other lists and sometimes you can just do some quick ad subtraction multiplication in your head instead of picking up your calculator you remember the back of the composition book they were black and white and it's great school on the back was the multiplication table yeah one through twelve I had that memorized 12 times 12 is 144.

Good for you that's awesome isn't that good here's another thing to help your lifestyle change go for a jog even a walk it's amazing what this can do for you you don't need to do it for long 20 minutes a day will do it science states that walking 20 minutes a day briskly can add five years to your life why wouldn't you do it you know it's funny I bet on all of our videos we probably have said this out of the 200 videos 10 times at least this is such an easy thing to do and there's a win just get out and move we take breaks throughout the day down here in Florida we'll jump on our bike for 10 minutes that's it five minutes out five minutes back it just gives you a burst of energy absolutely absolutely so the other thing you want to do is you've got to find a way to prioritize your happiness being happy is probably one of the best healthy lifestyle habits you can follow for the rest of your life now when we get up in the morning we have a choice how do we want to feel how do we want to approach the day do I want to give Jody a kiss and say hey honey how are you it's great to see you I'm so excited that we're here together for the day or God I'm so annoyed and I'm so sad and I'm so this that's all mindset so prioritize your happiness and just remember happier individuals have a 3.7 percent reduction in death over a five-year period we've read a bunch of studies about being happy and prioritizing what makes you happy will have positive effects on your mood and your ability to live longer you know um you have been if you have been following us you know I'm a big fan of quick and easy journaling in the morning every morning I get up besides giving Jody a kiss and saying hey it's good to see you tonight I always write three gratitudes three things I'm grateful for and one self-affirmation one um self-affirmation I am a good speaker I am a good husband I am a good father those three gratitudes in one self affirmation always get me in a good mood that's great that's great that's an easy tip for people to use another important lifestyle change is and I love this one I might love it a little too much not gonna lie but get some sun not too much but some sun I mean I love the sun I get energy from it my mood is improved and you know vitamin D the sunshine vitamin has been shown to fight disease improve bone health and ward off depression you know what I'm going to say now I know okay not too much so right I get out in the sun I have 70 all over my body I have a hat long sleeve shirt long sleeve pants I'm on the beach in a chair under the umbrella with all that stuff on I look like an idiot but that's you know I get enough reflection off the water and I do love we take breaks during the day we'll sit on the front porch and get a little bit of sun it is important to get some sun during the day you just have to be careful right you know how much sun you know 15 to 30 minutes a day with the adequate protection should give you the right amount of vitamin D from your sunshine I like sun early in the morning right between 12 and 3 30 or four I'm out yeah I'm in the shade another lifestyle change would be to stay hydrated this is something else we talk about quite a bit staying hydrated is easy to do and it's an important healthy lifestyle habit that you need to remember to live longer adequate hydration is essential for promoting Optimal Health and you know this because we talk about it a lot and you read about it a lot and your friends tell you about it half your body weight in ounces I need six to seven 12 ounce glasses of water a day to meet the minimum requirements so just do it another one is to laugh often you know you've heard the old saying laughter is the best medicine well it's the plain truth laughing is so powerful do you ever notice when you laugh your heavy burdens tend to get lighter yeah do we laugh enough no we should laughter is a powerful antidote for stress anxiety pain and conflict we need to laugh we do say something funny why'd the chicken cross the egg no what the road so I'm a terrible joke teller so what we need to do you know what we're going to do tonight what we're gonna watch a TV show that's gonna make us laugh we're gonna watch an old funny movie how about that that sounds good you know the other thing is to maintain and strengthen relationships according to a Harvard health article social connections and relationships are very important to a happier life we are social animals and Studies have shown that it's critical to have these in our life yeah there have been dozens of studies showing that people who have satisfying relationships with their family their friends and their Community are happier and have fewer health problems and they often live longer now here's another tip that we talk about we got a lot of tips in this one get enough sleep people tend to neglect the importance of sleep they focus their energy and I'm gonna have a great day they do all these kind of things and finally go to sleep and wake up tired and grumpy it's not it's not good to do that you know you have to treat sleep as something that's sacred and you can't sacrifice it it is sometimes the thing to sacrifice right I'll get up early and do that I'll go to bed late and finish that we actually do that with work too lack of sleep can also often lead to serious health problems so Sleep Quality not just the amount of time in bed is important to your lifespan I think that you'd all agree that you'd like to live as long as you can and on top of that live a healthier life well into your 90s or more there's no crystal ball to see into the future but your vision includes being healthy I'm sure so make the decision to make some changes now this video is helpful you're gonna love this next one finding your path to physical wellness we're going to help you find a baseline where you are today how to build a vision and then bring in healthy habits and routines to support that Vision so watch this one next

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Why Millennials Need to Rethink Retirement

so much has changed economically for Millennials and gen Z compared to their Gen X and Boomer predecessors should retirement planning still be approached in the same way or should the work in whatever capacity you can get for 30 years so you can save enough to never work again strategy be amended what if there's a better way [Music] for as long as Retirement has been a thing it's required a ridiculous amount of financial forethought Logistics and frankly hope it is the definition of the long game because it's almost impossible to put it off until the last minute but the retirement landscape has changed significantly over the last century and retirement as a concept is actually fairly new for most of human history people just worked until they died fun the origins of retirement are traced back to Otto von Bismarck in the 1800s when he suggested government-run financial support for older members of society Social Security was passed in America fewer than 100 years ago in 1935 and then corporations decided they would also help foot the bill and pension plans also known as defined benefit plans came into Vogue but 1978 legislation introduced a new way to save in section 401K of the tax code that quietly shifted the burden from the employee clear to the employee in this new legislation creating a defined contribution plan paved the way for the pensions which were expensive for employers to maintain to slowly fall out of favor especially as people began living longer so it's kind of no surprise that today's American workers are under saving since funding your own retirement now mostly without a pension is a relatively new hurdle the risk shift from institutions responsible for funding retirement to individuals being responsible for funding their retirements via 401ks and IRAs has placed the onus almost squarely on the shoulders of workers to figure this thing out buffered by the average social security check worth checks notes fifteen hundred fifty dollars per month that has big implications for young people today because it highlights something crucial retirement is an evolving concept almost necessarily it looks different for every gen generation so Millennials and gen Z have to play this long game differently than those who came before us not just in how we plan financially but also in how we structure Our Lives here's the good news though that means we are given the opportunity to Define for ourselves what type of life we want to build more broadly so knowing it's the long game how do you build a life you don't need a break from rather than bisecting your life into two halves your working half and your retired half like a budget production of the Apple TV plus hit Severance and going ham at each foreign mixing the two together can make the result even more enjoyable and fulfilling overall than saving all of your RNR for the back half of your life it makes sense to devote some time energy and effort to constructing a lifestyle for yourself that you are not itching to escape from every chance you get or counting down the years until retirement and probably making a lot of sacrifices in order to speed up that process in fact that may mean more midday breaks to watch TV or take bike rides or nap on a Wednesday afternoon the paradoxes if you can build a life you don't need a break from then planning for retirement will unfold more organically and take the pressure off but here's the rub it might take a little bit of effort and time to get to a place where your life your routines your workflows your savings cushion can be molded into a form that fits your ideal schedule you may have young children right now who dictate your day you may work in a time-sucking job you may be too low on the corporate food chain to call these types of shots for yourself especially if your work is location dependent or closely tied to another person's schedule you may be juggling all three of these things simultaneously but it's helpful and productive even to dream about what an ideal week in the life would look like it's about creating routines and working styles that generate the most positive outcomes for you it might not be worthwhile to grind it out in a job you hate for 30 years solely for the money before you allow yourself to explore something you're actually interested in that may not pay as well an ideal second act may be less about having unlimited free time to lounge around and more about having meaningful activities to fill your time and for most people that will include work and hobbies you find invigorating so here are a few prompts that I like to ask to help conceptualize what this would look like for you number one in what ways do I deplete myself or run myself into the ground number two what does a life of meaning mean to me number three if I were only allowed to work for two hours per week what parts of my job would I want to keep and what would I want to ditch I'm using an absurdly low amount of time just to force Focus here so only the best stuff can stay number four which rituals or practices make me feel most like myself and what's stopping me right now from doing more of them so now that we've got some of our conceptual boxes checked let's switch gears a little bit and talk about the financial side of this picture calculating your retirement needs based on your age we can leverage some hashtag math to understand how much we need to save whether your retirement income is going to support a traditional retirement at traditional retirement age 65 Plus or it's going to be your supplemental income starting in your 40s if you begin working part-time on a passion project the generally agreed upon replacement rate for income in retirement is about 75 percent in the financial planning world and replacement rate basically just means in order for you to replace your income how much does your portfolio need to be able to pay you this advice is given under the assumption that you'll pay less in taxes as a retiree you'll stop saving and you'll benefit from other Cost Cuts but the problem in my mind is that almost nobody makes the same amount of money throughout their entire career and wild swings and income can make identifying one pre-retirement income pretty difficult here's why this matters though 56 percent of people say that they expect to have less than five hundred thousand dollars by the time they retire providing an annual income of twenty thousand dollars per year according to the four percent rule so supplement that with the average social security check and that's about thirty two hundred dollars per month to live on depending on your needs and your timing that might be enough but it might not be as the same study found that only three percent of retirees deemed they were living the dream while around 37 percent said they were comfortable but I want all of Rich Girl Nation to live dream so let's unpack the math that can show us how to get there first we need to identify our general goal bearing in mind that this is a ballpark and to State the obvious the earlier you start the easier this will be there's really no getting around that so what Grand number in the bank should we shoot for I recommend using your monthly spending plus buffer as a guidepost for how much to invest as opposed to the aforementioned 75 income replacement rate the challenging part about focusing on your monthly spending is that it too fluctuates through different life stages and it'll be impacted by factors like where you live and how many dependents you have and your medical needs but a monthly spending range is usually useful enough to provide a ballpark for example I know that when I was single I lived on about three thousand dollars per month then when I got married my half of our monthly spending jumped up to about four thousand dollars per month when we have kids it might go up to six thousand dollars for my half for consistency's sake so this means our dual income needs to to range anywhere from six to twelve thousand dollars per month and if I can multiply by twelve I can get our annual spending somewhere between 72k and 144k per year depending on the stage of life in today's dollars and If I multiply those numbers by 25 I get our portfolio targets that'll allow for a safe withdrawal rate of roughly four percent that means my ballpark goal is anywhere between 1.8 and 3.6 million dollars so I can take the upper bound to the 3.6 and know that it would likely suffice as my sole source of income in retirement if my ideal life involved no work at all or work of some kind that wasn't paid like caring for family this would be the number necessary for a traditional retirement I can take the lower bound of 1.8 million and know that it would likely suffice as a less traditional retirement buffer for my costs providing the majority of my monthly expenses if enjoyable part-time work could provide the rest this would be the number more appropriate it for the evolved retirement blended with your working life model that we're discussing today unless you think but Katie I do not dream of Labor of any kind why would you suggest that we sandbag the OG retirement Vision with something as silly as part-time work consider this in a recent study from American advisors group they found roughly half of the 1500 people aged 60 to 75 surveyed said they plan to work part-time in retirement 12 percent said they never planned to stop working which is actually an increase from six percent in 2019.

So this is already reality for many retirees but it's hard to say whether it's by choice or out of necessity but work sure feels different when you are choosing it which makes saving and investing for the future a good idea no matter what your plans are and by making intentional shifts toward fulfilling work earlier you are less likely to hit traditional retirement age and feel disappointed if you slogged it out for 30 years doing something you didn't even like and still don't have enough to live a comfortable retirement and with regards to those example ranges the good news is that this is all proportional for example if you spend four thousand per month your gold number would be around 1.2 million which is still a lot but surprisingly achievable with consistent effort and compounding so let's figure out how close you already are to your long-term goal the concept of compounding can help us understand how close we already are to reaching our goal amount and for the sake of Simplicity we'll use a lower average rate of return that takes inflation into account for example maybe you're 30 years old today you've got 100K invested by the time you're 50 that 100K will be worth three hundred twenty thousand dollars assuming a six percent real rate of return even if you didn't invest anything else to reiterate I like to use six percent as a post-inflation rate of return because it helps accurately represent what the money will actually be worth in today's terms simply plug your existing invested assets into a compound interest calculator we'll link a good one in the description use a six percent rate of return and then plug in a realistic number of years between now and when you expect to make this type of transition if you want to be more conservative so think higher inflation lower nominal returns you can use five or even four percent you'll see that depending on how much you have already you may be closer than you think some of you may realize you are already in a position where you can safely downshift and make life adjustments without meaningfully threatening your future security to put a finer point on this you may already have enough saved and invested for future use needs that any stress you're currently experiencing about sticking around in a highly paid field that just is not right for you might be unfounded because we don't know what the individually funded and personally responsible retirement is going to look like for a generation it's worth interrogating whether or not the traditional model for retirement still makes sense for us instead you can determine what a life you don't need a break from looks like and set your financial goals accordingly with a range based on your spending depending on your age and how much you already have saved and invested you may be way closer to safety than you think and if you want to hear the full episode of this week's money with Katie show click the video that just popped up on the screen and in the description of this video our show is a production of morning brew and is produced by henna Velez and me Katie Gotti tossan Devin Emery is our chief content officer our video editors are Christy Muldoon Sebastian Vega and Nicole Friedman additional fact checking comes from Kate Brandt foreign [Music]

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How do I rollover my IRA to gold or silver?

foreign how do I roll over my IRA to gold or silver navigating the process of rolling over your IRA into gold or silver can help protect and diversify your retirement portfolio first choose a reputable gold or silver Ira custodian and open a self-directed IRA account with them coordinate with your current Ira custodian and the new custodian to transfer funds from your existing Ira to the new self-directed Ira once the funds are transferred work with your new custodian to select the appropriate gold or silver asset to purchase within the self-directed IRA in conclusion rolling over your IRA to gold or silver involves choosing a reputable custodian transferring funds and selecting the right precious metals assets to diversify your retirement portfolio if you're interested in rolling over your 401k into a gold Ira gold and silver trust can help call us today to discuss your specific retirement needs and download your free gold and silver investor guide this guide provides valuable information on adding precious metals to your Diversified portfolio foreign

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2 Early Milestones in the Game of Retirement Life

Loren the Game of Life it came out 
in 1960. A board game that you had   in your household growing up? Most definitely we  played lot of games growing up and this is one 
of them. Okay so today what we want to do is we   want to go through the milestones of life we're 
kind of going to do it in numbers. So in a way   we're taking some liberties here the board game is 
like a series of numbers as you move through life.   And as we specifically talk about moving to and 
through retirement what we want to do is give   you strategies give you tips gives you things you 
should be talking to a retirement planner about.   And we'll have a little fun with the Game of Life
along the way.

But we should first talk about how we look at every retirement whether you come 
talk with you Loren if you're 55 or 75. We apply five guiding principles to your retirement 
to help you win the game of life. Yeah there's two   distinct phases of life there's accumulation years 
then there's the retirement years. And when it   comes to those retirement years that's when it's 
important to really start to get organized in the   form of retirement plan. And in that retirement 
plan there are five guiding principles. When   you retire you still need income your W-2 wages 
go away where's the income going to come from?   When you take income you're still going to have to 
pay taxes there's long-term care Medicare planning   legacy planning and then of course the fifth one 
is the investment planning principle. Okay so we   have our cars this is the cutest little thing I've 
got six people in my car because I've got four   children and my husband in here. Loren has his 
daughter Jace and the little dog Coco no Mocha,   Mocha is in the car with Loren.

So Loren like I 
said we're gonna have a little fun with this. Why   don't you spin once for the first time and then 
we won't spin to continue. But we'll get started   on our game. Oh two, alright Loren gets started on 
two. Would you like me to take the, goes he goes   two. And let's draw a card just fun so we can kind 
of refresh ourselves on what the cards are for the   Game of Life. I'll draw the card, I'll answer the 
first one. Alright you go first. Ah get a pool,   I like this first card you probably like that 
Jace would like to get a pool as well.

So it says   pay the bank $50,000. Wow, pools are expensive. 
Well, that sounds a lot like today's prices. So   that's the first stop or the first card that we've 
picked on the game of life. Now the first stop on   your journey to and through retirement as we 
pull the numbers kind of on your board game   is age 50. So you're going through the game of 
life you hit age 50.

What should you be thinking   about in terms of retirement? From a retirement 
planning standpoint age 50 is a milestone.   A big portion of this milestone is now you're able 
to contribute more towards your retirement savings   than what you've ever been able to do before. 
If you're under age 50 into your IRA the max   you can contribute is $6,000 but at age 50 you 
have a thousand dollar catch-up contribution.   So a total now of $7,000 but here's 
where the real fun comes into play.  At age 50 is through your employer sponsor plans 
your 401k plans. Before age 50 you could only   contribute up to $19,500 you get an extra $6,500 
contribution bonus if you will.

Once you obtain   age 50 for a total contribution of $26,000. So 
now if you're age 50 or beyond you can actually   contribute the max to your 401k plan. And if you 
qualify from an income standpoint also you can   contribute the max to your IRA. So, the 7,000 plus 
the 26.5 now you can start saving for retirement   and accumulate that wealth a lot more quicker. 
And you ever have conversations with people about   you know is it usually a no-brainer contribute 
that 6,500 or do they have to look at all the   other moving pieces in their life too. Because at 
50 I know I'll still have kids at home, a lot of   people still have kids at home so that 6,500 feels 
like a lot of money.

It does feel like a lot of   money and so it's different for everybody. In each 
one of these milestones that we talk about here on   this on this show. The outcomes or the strategies 
that you incorporate with it will be different   for everybody. And that's the necessity of a 
customized written plan as you make the transition   from the working years to the retirement years. 
Your life your circumstances your resources that   you have your cash flow is different than most 
other people. So your plan needs to be customized   to your circumstance. Okay I have to spin I 
know I cannot spin a two that's not hard to do,   I got three okay I'm gonna take the bus here 
go with me and the four kids we got three.

Alright here we go, promotion! 
Your hard work paid off spin again.   So a promotion obviously is a real piece of 
retirement and the nice thing about a promotion is   maybe you can contribute a little bit more to 
that 401k or or do a little bit more retirement   planning as those promotions come along so. Let's 
talk about our next stop on the game of life   retirement style and it's age 55. What do we need 
to know there? Age 55 is an important milestone   because now if you separate service from your 
employer and you have an employer-sponsored plan   now you have penalty free withdrawal privilege. 
And this is a very little known loophole as it   relates to these employer-sponsored plans. So, 
if you're working with your employer you're 56   years old you retire or you get laid off or you 
just decide hey i'm going to go somewhere else   if you take your distributions from that employer 
plan you will not have to pay that 10% penalty   even though you're under age 59 and a half.

So a 
lot of people think 59 and a half I take money out   of my retirement plan I'm going to be imposed 
that 10% penalty but if you take it after you   separate service post 55 from that employer plan 
you don't have that 10% penalty. And when you say   take it can you take it all at once is that the 
best strategy typically or do you want to spread   that out? Well there's a couple different things 
that goes into that. Let's say you can take it   all once so if you have $200,000 underneath your 
employer plan your 56 you leave that employer.   You can take that full $200,000 out but if it's 
pre-tax money meaning it's never been taxed before   it's going to jump you up into a tax bracket that 
is ugly.

So even though you can, you may not want.   So you can't put it in an IRA or something right 
away? You can put it into an IRA but once you do   so now that money lives underneath the IRA rules. 
Which means you cannot take it out until 59 and   a half without the 10% penalty so here's where a 
lot of the planning will come into play especially   if you want to retire prior to 59 and a half. 
Is you may choose to leave that $200,000 there   maybe you have some other IRA money that you know 
you're not going to use until post 59 and a half   or you can say between 56 and 59 and a half you're 
only going to need a 100,000 of that so many times   the employer's plan will allow you to roll the 
100,000 keep a 100,000 there and then you can   use that for the penalty free cash flow.

Thank you 
for watching this clip of retiring today and don't   forget to subscribe. If you have questions
about your retirement plan, take advantage   of the complimentary 15-minute 
retirement checkup phone call..

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F.I.R.E – 6 Uncomfortable Truths we discovered about Early Retirement & how to mitigate them

foreign hey what are the ugly sides to 
retiring early um aren't you bored every   day just lying around doing nothing don't 
you guys worry about running out of money hey guys welcome back to another beautiful 
day here in Paradise Bali many of you have   been asking me so many questions like the 
above so today I'm gonna run through six   uncomfortable truths about early retirement 
as well as my suggestions for mitigating them   based on our own experiences reaching fire and 
being retired here in Bali Indonesia for the   past two years so uncomfortable truth number 
one retirement is a journey not a destination   for the record lying around all day doing nothing 
in retirement is a myth it's always nice to have   a few days of that here and there but in reality 
you do that for long stretches of time and you're   probably going to be hit very very hard with 
feelings of boredom lack of self-worth and you're   gonna be missing a sense of fulfillment retirement 
isn't a destination like Bali or Boracay it really   is the start of a New Journey in your life it's 
that stretch of time where you finally do those   things you wanted to do but always couldn't 
because you were so busy making money to   survive it can be anything traveling the world 
finally writing that book or studying that say   cross stitch side hustle if you never get past the 
myth you'll probably end up getting bored and then   end up going back to work and missing out on this 
Amazing Life Adventure so like every other journey   start planning what is this epic adventure you 
want to spend your retirement time and money on number two if you got bored during your 
retirement stuff maybe you're doing it wrong   so for a lot of people their retirement Jam 
is about traveling the world right that's a   super common one and it's amazing fun you never 
feel more alive and it's such a great challenge   because actually you need so many different skills 
to travel properly right you need Street smarts to   navigate the towns and scams and other issues 
on the road you need to be able to plan your   itinerary book the best travel deals know how 
to haggle your prices not to mention stuff like   riding a motorbike and scuba diving and at the 
start it's always epic it's so incredible but on excitement and sense of achievement starts to 
plateau and then you're gonna hit that point   of diminishing returns and it wasn't just 
in travel either it was also my painting my   businesses my surviving The Nomad life thingy I 
find that when love to remain largely undirected   most Pursuits actually tend to lose their flavor 
with time another way of putting this is perhaps   you feel yourself falling into stagnation or 
mediocrity thing is if you're early retired on   your own efforts then you're probably more of 
the go-getter and achiever type of person and   the aspect of your personality doesn't 
change just because you're tired you'll   still be looking around and judging if you're 
spending your time meaningfully and productively   to this fix personally I found two solutions 
that worked really well for me one either I   start drilling deep down into the details of 
what I'm doing or two I make it into a business   take my dad baking is his great love in retirement 
but he's not just begging anyhow for the fun of   it the last few years he's in pursuit of baking 
a tastier sourdough bread anyone has ever come   across out of 365 days in a year he is probably 
baked about I'm guessing maybe 400 sourdough   loaves two loaves each bake he tweaks the recipes 
the starter the technique the ingredients he does   some reverse engineering of sourdough bread that's 
commercially sold outside it's been maybe three   years and he's still going strong so he set his 
own special sourdough bread goal and Target and   standards instead of just serving and yogurting 
for fun I became qualified instructors in both   and eventually started both a yoga business and 
a surf school and you know I learned so much   more about both in the whole process whatever 
Pursuit out there if you start really drilling   down there's always more Improvement to be had 
more personal growth to pursue please say you love   Pottery don't just do it aimlessly to pass time 
polish up your skills enter competitions become   a professional Potter do commissions as your 
retirement side hustle or teach pottery classes   when you keep pushing yourself to those higher 
standards because you're either really drilling   down into the craft of it or you're running it 
as an Enterprise you'll find new measures of   productivity therein and you will be bored not to 
mention if you're actually like us on lean fire   whatever site income you generate will help defray 
the cost of your interests and hobbies so you   don't need to tap on your long-term Investments 
isn't that a really good deal so two years ago   at the age of 38 I retired with my husband here 
in Bali it's pretty early by most standards and   it's been a completely amazing journey we've 
learned a lot and I hope the insights we are   sharing with you guys are useful if you're on 
your own fire Journey or already neck deep in   retirement smack that like button share with us in 
the comments below what your retirement looks like   so far how you're keeping busy and whether you 
agree or disagree with the points we made here   now on to the third uncomfortable truth it's 
hard that you must defend your time you probably   retired so you can spend your time doing however 
you please whenever you please most of us will   have spent the vast majority of Our Lives 
thus far making a living which means usually   someone else is directing your time either your 
boss or your clients and we get really used to   that so then in retirement self-directing your 
time becomes something new and kind of foreign   and if you look at retired folks in Singapore 
after working jobs that entire lives most of   them graduate on in retirement working as free 
child care services for their grandchildren   if that's their ultimate dream and for some 
traditional older folks it definitely is then   it's wonderful I'm really happy for them but 
for some it may not really be that but they   find themselves doing it anyway kind of like by 
default because they're just so used to allowing   someone else to direct their time for them there's 
always going to be people around who will try to   take advantage of your free time asking you to 
run errands for them perhaps or like for us here   in Bali we get so many requests from both people 
we know personally and complete strangers of the   internet asking us to do stuff like plan their 
holidays show them around Bali Etc of course we   love hosting close friends and family and we 
enjoy helping people generally but sensibly   speaking our own private lives would just vanish 
if we were to entertain all the requests we get   you'll need to learn how to say no to people and 
how to strike balance retirement is as much about   sharing your time with the people who matter 
to you as it is about having time for your own   personal growth and development just be aware 
uncomfortable truth number four it's probably   gonna be just you and your significant other from 
now on out so upon retirement your social scene is   going to change drastically everyone else is at 
work or busy with their own stuff you're either   gonna have to learn to enjoy your own company 
a lot or if you're lucky enough to have retired   with your significant other that's who you'll 
probably be spending majority of your retirement   with so best learn to get along companionably good 
communication is key as it's just generally being   a considerate and respectful human being through 
the pandemic and on the road this past decade   I've seen so many people who seem really surprised 
by the person the other half truly is when they   start retirement and start traveling together 
24 7 a day but building that Comfort to do   stuff by yourself and building that wonderful 
relationship with your other half can also   possibly be the most rewarding part of your 
retirement journey and your personal growth   before I share with you the fifth uncomfortable 
truth just the quick word from our sponsor of   today's video MooMoo Singapore the stock 
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uncomfortable truth number five your money plans   are never as foolproof as you think all retirement 
whether it's the regular kind or fire really all   boils down to the financial planning behind it 
right and the most uncomfortable truth of all   may be that your retirement funds are never 
as foolproof as you plan for especially if   your plans are supposed to spend 30 40 even 50 
years in the case of early retirement expert   predictions and assumptions go wrong you made a 
mistake in your portfolio planning because of all   the buyers that we all carry Bear markets happen 
blacks on events gray Rhino events so many things   no matter the plan no matter how much stress 
testing you did before you dove into it the   unexpected often happens and the sooner you come 
to terms with this uncomfortable truth the sooner   you can move on to hatching against the risks 
You can predict most retirees they're working   their financial planning and less Aid around 
the four percent drawdown rule right so the   U.S stock market has had a phenomenal Run for the 
last 10 12 years or so now of course things are   looking a little different for the foreseeable 
future so those who have been conservative and   who have refrained from tapping their long-term 
investments will have more breeding space now   to ride out this bear Market however long it may 
last friends who have been following our journey   for a while now know that a dominant portion of 
our retirement here in Bali consists of rental   income from a number of real estate Investments 
and unfortunately in the last two years since   we started retirement Europe is a game at War 
soaring Energy prices have driven up the cost   of living across the world and everywhere massive 
inflation is now a huge issue thankfully we have   so far managed to resolve whatever disruptions 
we've experienced but basically yet another   uncomfortable truth in retirement is that managing 
your money to make it last till the end takes up   more time than you think don't just go to sleep on 
it continually look to diversify the eggs in your   basket and be open to adjusting your money plans 
like rebalancing your portfolio or changing how   you invest your retirement Arsenal as different 
opportunities present themselves for time you may   not need to work for money any longer but doing 
stuff that fuels your personal growth and that   generates some extra side income as a bonus is 
never a Bad Thing uncomfortable truth number six   no point sweating the small stuff y'all know I'm 
a big fan of simple frugal living and no pretenses   whereas happy dining in a fancy restaurant 
as we are eating at the local War rooms here   sometimes more happy actually but many of us 
can also easily get carried away diving into   with the itsy bitsy details of frugal living you 
know spending two hours here looking up deals and   coupons that end up saving you 10 bucks three 
hours there figuring out how to maximize your   air miles should you lock in that 3.5 fixed 
deposit rate now or wait till next week where   maybe it might be 3.7 I mean it can be fun 
and then it can also be a lousy use of your   time you can do it if you enjoy the challenge 
just know that so long as you get the big stuff   right your retirement is probably going to work 
out just fine so don't sweat the small stuff   big things include stuff like keeping on top 
of your overall General expenses you know doing   your taxes right maintaining a balance then 
Diversified portfolio so as long as you keep   on top of all of that I think that's about 95 of 
the big picture really conversely what I'm also   saying is that if you blow up your retirement 
finances by for example trying to go big or go   home on crypto no amount of coupon cutting is 
gonna save you from having to go back to a job   so yeah that's my take on not sweating the small 
stuff we're all retire at some point of Our Lives   whether early or late voluntarily or unwillingly 
it all boils down to choice and advanced planning   just what I've personally observed is that if 
you cut out all the noise and distraction in   life what do you think are the real currencies we 
truly traded the way I see it is four things it's   money time Youth and health just think about it 
everything we do throughout our entire lives is   really us trading one of these for the other an 
early retirement is that one anomaly where you are   in a position to spend all four currencies at once 
simultaneously and that maximizes your experience   of life a really clear illustration of this is 
traveling you can travel in your 60s and 70s sure   that's what most people will end up doing and it's 
great you know you see these folks really enjoying   seeing new things being very happy but it's often 
in the form of like lots of cruise trips around   the world and that's cool too but they'll never 
experience what it's like to try learning to surf   or sail and getting all salty and burned and 
muscle achy but happily exhausted oh they'll   never try anything more vigorous and adventurous 
like say backpacking your way through Europe you   know crushing in new hostels meeting crazy people 
from Iceland or wherever and doing silly things   together we all have two lives the life that we 
currently live and the life we could possibly live   so then which life would you choose tell me in 
the comments below and don't tell me you wouldn't   retire early because you just wouldn't really know 
what to do that's just a cop-out answer because   yeah well you're too lazy to do the legwork 
and try new stuff and understand yourself   thanks for watching as always speak 
again next Saturday bye foreign

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6 Retirement Essentials (Most people only prepared 2 or 3)

I'm planning for retirement most people focus 
mostly on marshaling together enough money you   know Financial Resources so that they can last 
the distance and then maybe at the back of their   heads they have some vague plan right perhaps 
two or three things to fill the time with a lot   of the times this is stuff like travel family 
well unfortunately I'm gonna say that's not   quite nearly enough for Preparation we ourselves 
have been retired for two years and going looking   back on the past two years I kind of see like 
six essential things that if you prep for it   beforehand before your retirement starts I think 
this can really make such a positive difference   to your retirement so that's what I wanted 
to bring up and discuss with you guys today   number one first and foremost of course we have 
to talk about money most people's concern is the   amount of money that they have in retirement 
whether it will last them till the end come   comfortably and allow them to afford the Hobbies 
like travel good food Etc but I actually think   after going through the last two years building up 
our financial Acumen is just as important if not   more so what do I mean by Financial Acumen I mean 
stuff like budgeting tracking projecting investing   I mean if you think about it the money in your 
bank account can always be squandered we all   know that story I think more importantly what's 
going to make your retirement more fireproof is   having an ability to generate more money where 
it came from in the first place so the second   essential thing that you can prepare for so that 
you have a wonderful retirement it's definitely   the ability to be self-directing and disciplined 
self-direction definitely helps so much with   spending your retirement days meaningfully right 
after all there are no more like work schedules   or like demands from colleagues or bosses to help 
shape your days anymore you have to be the person   to take charge in retirement there's a study out 
there actually that shows that for happily retired   folks most of them actually have about 3.6 core 
Pursuits that's what they say and the unheably   retired folks tend to have less than 3.6 corporate 
suits coming in at about 1.9 call Pursuits that's   what the study reflected I guess it kind of just 
shows in retirement you really need to fill your   life to the brim and keep busy with activities 
you love and that is a really great formula for   happiness and self-direction will help you 
to achieve that state as well as discipline   because if you think about it like discipline 
directly affects the state of your finances right   it affects whether you stick with your retirement 
planning whether you keep fit and active and you   get to maintain your health in retirement even 
whilst you're left up to your own devices even   to find your cover suits if you don't have any 
when you're starting or in your retirement so   discipline and self-direction will be like 
the building blocks for enjoying your life   in retirement the third essential thing you might 
want to work on and cultivate or happy retirement   is people skills right so studies and research 
have reflected very consistently that the main   determining factor for happiness and Longevity 
for most of us is actually relationships Human   Relationships friendships relationship with 
your spouse and with your family I guess if   you look at most of us you know we all have 
a little need of work on some social skills   in some aspect I mean some of us are a bit shy 
paper hats or graph or maybe socially anxious   working on our people skills really will help us 
to get along and live happily with our spouse and   family members and also importantly to make 
new friendships at whatever age we all know   that making new friends gets a lot more difficult 
as we get older I mean I haven't heard anyone say   otherwise for me personally making new friends 
as I get older is the biggest challenge there's   this huge feeling that nothing can replace 
friendships with people who have known you   all your life but it is also a challenge as I 
have chosen to exercise through Arbitrage in   our retirement and we've moved away from home 
so those friends aren't with us in our present   I find that it takes a lot of intention I have 
to consciously push myself to broaden my Social   Circles and make the effort to get to know people 
on a more intimate basis I am also very happy   to be able to say that it has paid off in that for 
the last two years in Bali I have actually made   two or three new friends that I'm happy to say are 
kindred spirits and not just social acquaintances   so that's very nice and it's a huge Comfort to our 
daily life here in a foreign land away from home   now before we move on a big thank you to 
Mumu Singapore for sponsoring this video   Singapore is an online trading platform for 
stocks ETFs and options I've been using the   MooMoo mobile trading app myself for almost 
a year now and I think it's awesome it's   fast intuitive trading US Stocks is commission 
free plus they give free level to data and many   more perks now for a limited time when you open a 
Mumu Singapore Universal account they'll give you   a year of commission free trading of Singapore 
stocks ETFs and reads if you're trading us and   Singapore stocks just switching to the MooMoo 
app will save you so much money already when   you deposit at least a hundred same dollars and 
start using the mobile app to trade you stand   to receive cash coupons up to 128 Sing dollars 
and even a free Coca-Cola share worth around 87   subscribe two thousand Sing dollars or more into 
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dollars cashback altogether that's 368 Sing   dollars worth of Welcome rewards absolutely free 
just for using the Momo app so if you're actively   investing anyhow I recommend checking out the 
MooMoo ad using my link in the description below   now back to the video the fourth essential 
thing that you can definitely work on and that   will benefit your retirement tremendously it's 
actually courage you're definitely gonna need lots   of courage in retirement and I guess this isn't 
a skill exactly it's kind of more of a quality   but in retirement you need a lot of courage 
to even plunge into retirement you need the   courage to you know take that leap of faith to 
stop putting it off due to fear of the unknown   feel or financial insecurities so then it's all 
about courage at that stage not let fear and   insecurity rule your life and your decisions it 
is also the courage to recognize that in life at   the start at the end in the middle the Domino's 
you need are never all nicely lined up you know   at some point you just got to jump into it and 
then learn to cross the obstacles as they come   so for retirement long term I guess the 
biggest issue most commonly is always money   but my perspective on this is that hey budgets 
can always be reduced money can always be earned   or recouped or whatever happens so I still 
think that you know it is actually beneficial   to Advocate an approach whereby you get to 
a point where you feel that you have most of   your Ducks lined up you've planned well you've 
prepped for it grab hold of your courage with   both hands and then take the plunge people tend 
to think of retirement as the end but it's not   it's the start of a new phase where you should be 
trying so many new things new Pursuits new ways   to live and for each of these new adventures 
you're gonna need courage to take action and   once you have taken the plunge you'll find the 
next fifth thing very very useful and that would   be a mentality of resilience especially in early 
retirement there are a lot more decades ahead of   you you know and therefore a lot more chances that 
they things can go wrong whether it be down to bad   financial planning or perhaps an unexpected Health 
catastrophe or even sometimes natural disasters   whatever comes I guess you will always need that 
strength of Will and the resilience so that you   can roll with the punches and then get back up 
you want to know that you have the mental strength   that even if things go pear-shaped you won't just 
give up and lose hope and certain Corner you've   got to Marshall what you've got inside you go out 
there find Solutions perhaps if necessary you've   got to go back to work but know that later on 
you can return to retirement and try again so the   sex essential thing that I believe will benefit 
everyone in retirement is to cultivate an attitude   of gratitude we all know life is a very long 
journey hopefully at least and so much of what   we Chase using most of our years actually doesn't 
really matter in the big picture once you have   taken a step back and then at that point is when 
you start realizing the earlier you cultivate and   attitude of gratitude and that appreciation for 
the simple little things that are probably around   you everywhere every day the happier you probably 
will be and it sounds silly but it's not really   automatic I mean we all live and grow up and 
work and go to school in a society that kind of   innovates us with messages that we need to reach 
for more have more ambition gives us you know that   High definitions of success in life that we 
have to try to jump to reach and nobody sings   the Praises of the pleasures of a simple cup of 
tea you know the importance of family time with   your loved ones or or just the pleasure of being 
able to take an evening walk on the beach with   your dog so I think that it's very important that 
somebody reminds you that you know you can not   overload what you already have what you're already 
surrounded by growing that muscle of appreciation   so that in each and every moment you are present 
in your own life you see all the little Joys that   you're surrounded with every day and if you 
live life like that I think that will help   you achieve contentment with just the small stuff 
around you and that's what majority of your life   in retirement may be about is just a small stuff 
every day but in my own retirement here in Bali it   is what makes me so grateful and so happy every 
day that I am surrounded by my loving husband   and very interesting and independent little dog 
that's very very cute you know that we have very   comfortable a bit simple house we have the ability 
to enjoy good food even if it's simple stuff   from the war rooms locally we have a garden and 
beautiful things are growing around us every day   the weather is great you know stuff is good yeah 
I think this is one of the most essential simple   things that's often overlooked simply because it's 
a matter of mentality but I believe this essential   quality or characteristic could make all the 
difference for you so these are the six essential   things that I believe are very very important for 
you to cultivate and prepare for in the leader to   actually taking the plunge into a return then I 
think that if you have these six strong skills and   qualities going for you you will be in a position 
much more well placed to make the best out of your   retirement however long that period may be let me 
know what you think of my suggestions whether you   agree or if you think they suck let me know why 
but in any event I really appreciate you tuning   in and sharing my thoughts for this week and 
wherever you are in the world I'm wishing you   a happy Saturday evening and let's speak again 
next week till then you take care and bye for now

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Instead Of Downsizing your Home for Retirement, TRY THIS!

because downsizing isn't for everyone or maybe there's reasons why downsizing doesn't work for you and we're going to cover that in a few minutes you know if you're not in agreement with your partner or you don't have the time or money or your home is actually the perfect size for your new life then this video will give you new hope and inspiration for what we call right sizing [Music] i'm gonna retire soon and the first thing we're gonna do is downsize our house who died made you boss what do you mean this is what we're gonna do we gotta downsize everyone downsizes right a lot of our clients come to us in this quandary and while downsizing is a word that most people associate with retirement it also causes stress in a relationship when one partner wants to downsize and the other does not and then if you have children they're going to have an opinion too and this can end up being a divisive issue and tear apart a relationship and a family but there is hope because downsizing isn't for everyone or maybe there's reasons why downsizing doesn't work for you and we're going to cover that in a few minutes you know if you're not in agreement with your partner or you don't have the time or money or your home is actually the perfect size for your new life then this video will give you new hope and inspiration for what we call right sizing and stay to the end where we're going to share 10 quick low-cost changes that can help bring life back to your current home all right so today we're going to step back from the idea of selling your current home and give you some options to think about and stay in that home but before we go further we want to introduce ourselves particularly if you're new to this channel my name is mark rollins and i'm jody rollins and we started retirement transform in 2017 not only for us but for all of you and the 10 000 people turning 65 each day now we don't focus on any of the financial aspects of retirement but rather lifestyle health relationships and more and if you're new here please hit the subscribe button and the notification button so you'll get notified when our videos come out now if you do want to downsize we did a great video and the link to that will be below and that actually comes with a worksheet to help you go through that but today we want to talk about not downsizing staying in your home we actually downsized what we went through a process that we talked about in the first video where we actually had to clean the entire house out to sell it so we eliminated clutter we eliminated furniture we made one of the bedrooms a den painted the entire house inside and out right what else did we do and i was looking at the house thinking to myself with all that work done honestly why do we want to sell it but ultimately it made sense for us to do so let's discuss the reasons why selling your current home and moving may not make sense and the first thing is you might not like i didn't want to you might not want to leave your current area your friends your family or your volunteering community well the other thing is your home may actually be the perfect size for this phase of life sure the kids are moved out and you have some extra bedrooms but you don't want to move into a smaller house right now you don't want to move it can be stressful could be stressful and you actually enjoy having a little bit of a yard to do some gardening maybe doing some home repairs there's enough room for friends to visit or grandkids to stay over so maybe your current house is just the right size and some clients come to us with this reason financial considerations maybe your mortgage is paid off and your property taxes aren't so bad and your financial planner thinks it makes sense to stay where you are that's a reason not to sell yeah and another reason not to sell maybe your home has an apartment either in the basement or upstairs that you've been renting out for a while and your plan is to move into that and give this house to one of your kids down the road or sell it to one of your schools or sell it to one of your kids but it gives you an option to keep it and then actually be able to get common agreement with your children that you get to stay there or downsize one day down the road but right now your home is fine the reality is however all of us will either downsize or be downsized at some point in our life so let's dig into some ideas that we came up with to allow you to stay in your home but make it feel like you right size now listen this will take some work and it may feel like at times you want to quit but we want you to listen carefully and take a few notes and imagine the possibilities for you and your family in your current space and don't forget at the very end of the video we're going to share 10 quick fix tips to help you make your home feel better and one that you really want to stay in so let's say you've decided to stay for whatever the reason and you and your partner are on the same page right sizing to us means sprucing up your home inside and out make believe that you're gonna sell your house so it needs to be fixed up and by the time you're done you will have a new updated home that you won't want to leave so let's start outside so maybe because you've been working so hard for so long your shrubs and your gardens and your overall property really feels overgrown tired and in need of a redo yeah there are some simple things you can do you know you can trim the bushes you can pull your weeds you can add some mulch and nothing looks better than a crisp edge around garden beds right you can actually claim part of your yard if you're industrious as a vegetable garden or maybe buy a bench and stick it in the corner or make a small pond or fountain in area of focus now that you have more time think of your property as an oasis and a place for you to really spend your time and if you're not really sure how to do that hire a landscape architect get a real plan and agree with your partner you're going to do this over three or five years again don't make it feel like a huge job with a lot of money but do something with an architect that's professional and do it slowly what you want to think about is curb appeal you want to think about when you pull onto that driveway you feel great to be there you can't wait to walk around the property and get into the house so let's move inside the house keeping with the theme of getting your house ready to sell if the inside has been ignored because of lack of time or wear and tear from the kids now is a great time to spruce things up you can start room by room if you're doing it yourself or if you're ambitious you can hire some contractors and maybe just to try it start with one room an easy room an easy room let's say you have an extra bedroom and you want to convert it to a den and use or you have a den that you spend a lot of time in together as a couple tackle that room do a simple light clean reduce the clutter but maybe you know the carpet and the furniture needs to be cleaned as well paint the walls in the ceiling do something to give that room new life or go a step further and maybe buy a new tv or install a sound system so you have music or go out and buy some comfortable light up-to-date furniture and maybe clean the carpet or think about a new carpet or even peek under the carpet to see if there are hardwood floors under there now if you do this one room it's going to give you a taste for what can be done with the rest of your house it will get you excited and inspired to do more you can also empty several rooms at one time you know putting everything into a garage or a space make things go a little quicker we're not trying to spend your money but hiring a contractor will help that and remember if your plan is to stay here for 20 or 30 years it makes sense to do this because just think about it every year that you're in there longer and you don't update it it just gets actually worse and if you need ideas what is it pinterest is a great place to go or house to get ideas set a budget an annual budget each year to begin to plan out what changes you want to make to your house here are some other ideas that came to us from a few clients you know in your kitchen pop in some new counters or paint those dark cabinets a light color even purchase a few new appliances or clean all of your cabinets inside and out and definitely donate what you're not using we have clients that the wife is a great cook been cooking forever and loves it she went out when they retired and bought a brand new oven and um cooktop the the original ones were like 40 years old she has these new ovens down and she actually has a whole new feeling and inspiration to cook now so that that's a good thing to do now if you have an extra bedroom in the house let's say the kids have moved out claim that as a home office or another den you can always put a pull out couch in there we have one of them in florida and it's still it gives you another room to go to but it also allows if if kids or grandkids want to sleep over there's a bed there the thing is to step back into your home and think of the changes you can make so it can feel to you like a new home and thank you for staying till the end so here's what we promised 10 quick changes you can do to your home that are relatively inexpensive the first thing is clean all your closets every single one and i'm telling you when you take one closet and say we're going to empty it all out we're going to put the stuff back in that we want and everything else gets donated the feeling you get is incredible it is so the first thing is to clean your closet and the second thing you touched on which would be donate it's a no-brainer it always makes you feel good donate what you don't need because other people do need it the third thing is and this one might sound silly but we've done it a couple of times you'd do it every week if you could change your kitchen cabinet knobs just the knobs and it is totally transform your kitchen just by changing the knobs now lighting in your house maybe you have heavy drapes maybe you don't really have bright light bulbs or many lamps add some more modern lighting pull down your drapes let some natural light in it'll make the world of difference as you walk around your house the fifth one is a big one for me buy yourself a new mattress when is the last time you bought yourself a new mattress sleep is so important your old one probably needs to go the mattress companies say what every eight or ten years you need a new mattress if yours is 15 or 18 years old you definitely need a new mattress the other thing you can do is you know on top of the new mattress get some new bedding and linen for your for your bedroom new towels in the bathroom whatever it is again a very low cost change but it feels new so the seventh thing that you can do is just simply rearrange your furniture in your living room or your den or your dining area or your kitchen just move it around take a whole new look at each one of those rooms and move kind of point and shoot and move furniture around now the other thing you can do is take part of your garage or your basement or a spare room and turn it into a home gym i'd mention a home office before but you know in retirement we talk a lot about physical wellness so instead of going to a gym put the gym in the house so i'm gonna go back outside and just reinforce clean up your property on the outside think curb appeal and that's number nine and number 10 is jody's favorite she's so good at this we have candles all over our house and when jody you know late afternoon she lights all the candles in the kitchen and the den she also has this scent machine i wish i knew what the name is you remember i don't but it just it just pumps out put water in there a little drops of oil and it just makes the house smell so fresh well we also have a dog and i never want you to come into our house and say oh god you have a dog so those are ten quick fixes we don't want you to feel locked into having to downsize but if you're going to stay where you are do something to make the home that you live in feel new and fresh do some of the 10 quick fix tips and enjoy your fresh update at home and if you enjoyed this please share with your friends and please subscribe by clicking the subscribe button it really means a lot to us to get this message out to as many people as we can and finally join our free facebook community the link is in the notes below thanks for listening and we look forward to being with you again

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Planning for Your Retirement with CPF – Part 1 (Growing Your Savings)

Hi everyone, I'm Caroline from CPF Board and today I'll be sharing how you can plan your retirement with CPF. Your CPF helps you to be ready for your golden years by supporting your three retirement needs. Home Ownership, Healthcare Financing and Retirement Income. Let's start with Home Ownership. For greater peace of mind, your home should preferably be fully paid out so you don't have to worry about the mortgage or interest going up. It can also be used to supplement your retirement income by renting out your flat partially or fully. Another option to monetize your flat is by moving into a 3-room or a smaller flat for the Silver Housing Bonus or selling part of your lease back to HDB through the Lease Buyback Scheme. The proceeds are then topped up to the retirement account savings to enjoy lifelong retirement payouts through CPF LIFE. Next, Healthcare Financing. As you grow older, chances are you're likely to spend more on your Healthcare needs.

This is where MediShield Life comes in to provide health insurance to help pay for your large medical bills. You can also tap into your MediSave savings to help pay for your healthcare expenses. Last but not least, Retirement Income. Apart from housing and healthcare, your CPF also provides you with a steady stream of monthly income to help pay for your daily expenses like food, transport as well as savings that you can withdraw for more immediate needs. Speaking of which, how much do you think you need every month for your retirement and how long should your payouts last? So we know how much we have saved but we do not know how long our savings need to last because nobody can predict how long we can actually live.

Spend too little and we might deprive ourselves from fully enjoying our hard earned savings during our lifetime. Spend too much and we might not have enough for our retirement if we live longer than we thought. Have you heard about CPF LIFE? CPF LIFE is a national longevity insurance annuity scheme. It insures you against running out of your retirement savings by providing you with monthly payouts no matter how long you live so you don't have to worry. At 55, a Retirement Account will be created for you using your Special Account savings first and then your Ordinary Account savings to set aside your retirement sum. This sum is used to provide you with monthly payouts no matter how long you live from your payout eligibility age, which is currently 65 years old. You will be automatically included in CPF LIFE if you are a Singapore Citizen or Permanent Resident and have at least $60,000 in your CPF Retirement Account when you start your monthly payouts.

If you're not automatically included in CPF LIFE, you can still join anytime between age 65 and 80. All you have to do is to choose one of the CPF LIFE plans when you're ready to start payouts anytime from age 65 to 70. If you do not choose a plan before age 70, we'll automatically start your payout under the CPF LIFE Standard Plan. So how much do you think you need in your 
Retirement Account to achieve your desired monthly payouts? Think about how much you need for basic expenses in retirement. If you want monthly payouts of about $1,400, you need about $285,000 in your Retirement Account at 65.

For monthly payouts around $2,100, you need about $425,000 in your Retirement Account at 65. As you can see, your retirement payouts are determined by the retirement sum which is the amount of savings that you set aside in your Retirement Account. Now these figures may look huge at age 65, but the good news is with attractive CPF interest rates, you only need to set aside a lower sum at age 55. This is why at 55, we set aside your Full Retirement Sum, or FRS. Take for example the current FRS of $192,000. With the power of compounding and attractive CPF interest rates over 10 years, this amount will grow to about $285,000 in your Retirement Account at 65 and gives you monthly payouts of $1,400. If you do not have the FRS, there is no need to top up. It just means that you have lower monthly payouts.

At this point, you may also be wondering if your CPF savings can be withdrawn for more immediate needs. From age 55, you can withdraw up to $5,000 from your Ordinary and Special Accounts, and you can withdraw more after you set aside the Full Retirement Sum. Your Full Retirement Sum can be set aside fully in cash, or you can just set aside the Basic Retirement Sum if you own a property. You can make as many withdrawals as you like from your withdrawal savings so there's really no need to take everything in one go. Do note that if you set aside a lower retirement sum in cash, your monthly payouts will also be reduced. Let me now share with you three tips on how you can enjoy higher monthly payouts in retirement no matter how long you live.

#1, reduce your CPF outflows. #2, retirement sum topping-up. #3, defer your CPF payouts. Let's start with reducing your CPF outflows. Your CPF savings earn good interest and the government pays extra interest to help enhance the retirement savings of Singaporeans. If you're below 55 years old, you enjoy an extra 1% per annum on the first $60,000 of your combined CPF savings, capped at $20,000 for Ordinary Account. If you're 55 years old and above, you get an extra 2% per annum on the first $30,000 and an extra 1% per annum on the next $30,000 of your combined CPF savings. This means that you can effectively earn up to 6% per annum on your CPF retirement savings from age 55. To maximise the interest you can earn, you can consider reducing your CPF outflows. To reduce outflows from your Ordinary Account, you can consider paying off your monthly mortgage before you retire or using cash to fully or partially service your loan.

Secondly, think twice before using your Special Account savings for investments. Unless you are quite sure that your investment returns can exceed 4% per annum, you might want to leave your savings in the Special Account which can earn you a minimum of 4% per annum. Lastly, you don't have to take out all your withdrawal savings at one go. At any time after 55, you can choose to withdraw your savings partially or fully and as frequently as you like. With PayNow, the savings that you withdraw will reach your bank account almost instantaneously. If you do not have an immediate need, you can choose to leave your CPF savings in your account to continue earning attractive interest of up to 6% per annum instead of leaving it in a bank account with lower interest rates.

Tip #2, boost your retirement savings through cash top-ups or CPF transfers. To enjoy higher payouts, you can consider topping up to your CPF Special Account if you're below 55, or Retirement Account if you're 55 and above. You can top up your Enhanced Retirement Sum if you are 55 and above or the Full Retirement Sum if you're below 55. You can view the amount of Full Retirement Sum and Enhanced Retirement Sum in the description box below. For cash top-ups to yourself, you can also benefit from a tax relief of up to $8,000. Do note, the top-up monies is purely for the purpose of building up your retirement savings and increasing your monthly payouts. Therefore, they cannot be withdrawn in a lump sum. In addition, cash top-ups from the Full Retirement Sum to the Enhanced Retirement Sum do not attract tax relief. Another option is to transfer your monies from the Ordinary Account to the Special or Retirement Account to earn higher interest. Now, do plan carefully before making such transfers as they are irreversible. Ensure the monies that you transfer are not needed for other purposes such as your housing instalments.

Please also note, that there is no tax relief for CPF transfers. After taking care of your own retirement needs. you can also consider helping your loved ones. For spouse, parents and grandparents, you can transfer your Ordinary Account savings after setting aside your Basic Retirement Sum. For your other loved ones, you can transfer your Ordinary Account savings after setting aside your Full Retirement Sum. So if you're making cash top-ups for yourself, you can enjoy tax relief equivalent to the amount of cash top-ups made, up to $8,000 per calendar year. If you're also making cash top-ups for your loved ones, parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings, you can enjoy additional tax relief of up to $8,000 per calendar year. That's $16,000 in total. For those who have yet set aside the Basic Retirement Sum from age 55 to 70, the government launched the Matched Retirement Savings Scheme in 2021 to help boost your monthly payouts in retirement. You'll get a dollar-for-dollar matching grant from the government for any top-ups received in your retirement account if you are eligible, up to an annual cap of $600.

The top-up can be made by anyone including yourself. This scheme will first run for five years from 2021 to 2025. The intent of this scheme is to help senior Singaporeans who have yet to set aside the Basic Retirement Sum to help build up their retirement savings for more monthly payouts in retirement. Besides MRSS, the government has put in place other schemes such as the Silver Support Scheme and Workfare Income Supplement Scheme to provide greater assurance for seniors. For more information, you can check out the description box below. While you can start your CPF payouts from age 65, you also have the option to start your payouts later. Under CPF LIFE, for each year that you defer, your monthly payouts will increase by up to 7%. Thank you for watching, I hope you found it useful! Please remember to subscribe to our channel to catch part 2 of our Planning Your Retirement video on CPF LIFE..

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