Style Switcher

Predefined Colors

Single Retirement (7 Tips to Ward off Loneliness)

there's 10 000 people turn in 65 every day and one half of this population is reaching this age on their own so you're not alone in this phase you need to know that you aren't alone but retiring solo does increase your risk of actually being lonely which can have detrimental impact on your health today we're going to talk about retiring alone or the new buzzword of solo retirement so if you're watching this and you say well that doesn't apply to me and you're a woman stay tuned the reason i say that is unfortunately seven out of ten or seventy percent of baby boomer aged women actually outlive their husbands what are you gonna do with that why are you laughing what are you gonna do without me i don't know what i'll do with that party anyway there's 10 000 people turning 65 every day and one half of this population is reaching this age on their own so you're not alone in this phase you need to know that you aren't alone but retiring solo does increase your risk of actually being lonely which can have detrimental impact on your health so this idea of emotional loneliness you know that people over 65 who suffer from that they have an 18 increase in their mortality rates which is scary so today we'll give you seven strategies to help ward off loneliness and overcome isolation to live a more fulfilling life as a solo retiree so here's the first strategy and this is really important overcoming your financial insecurities now if you are a single woman now or a single person and you're retiring and you don't really have a handle on your finances that's a problem and you're going to be stuck and stifled and not be able to move forward so you need to hire a financial planner and understand your finances and frankly if you're a couple watching this and one of the two of you really gets finances well and the other one doesn't that's not a good place to be no if you're listening to this both of you should pay attention and share the financial information as well as the financial burdens now because ultimately if you listen to that first statistic if you're a woman 70 of us will end up as a solo retiree outliving our partner that's just the medical history that's just the facts you know there are friends down the street who purchased the house from this elderly couple and unfortunately her husband passed away and she decided she wanted to downsize she went to sell the house they got all the way down the road to the closing right and realized he had never changed the title of the house so it took another three months to close and it's just because she had no idea they weren't really sharing the information so it is really important yep so get your finances in order we're not financial planners but definitely find one that was strategy number one strategy number two create a small support group of peers like mark said you're not alone there are many other people in the same place and you want to be able to share your struggles and successes with them yeah because it's it's tough to be alone and it's tough to really be alone but if you can be alone with another person who's alone then you're not alone anymore right that makes sense right kind of yeah good theory i mean you could do weekly coffee you know pick up a class or do some exercise or even just take a long walk it's important to make sure that you connect and have a group of peers yeah relationships are key and having a support group really helps so strategy three is along the lines of that but we're really suggesting that every day you talk to someone on the phone and person whatever it might be make sure you have a conversation with another human being every single day and it might make sense to make a list of people that you can call absolutely makes sense you know friends and family and neighbors you know and never feel like you're imposing and like mark said don't let a day go by that you're not involved in a conversation now it's always better in person because it feels better but if you can't be in person bad weather you know covet kept us all locked up a little bit at least call but be there and frankly what's helpful is not only for you to reach out to get some communication help but be the one supporting other people that's a great way to start having some conversations in a peer group that you're leading it so connect with someone every day strategy number four have a daily plan and a schedule something that adds structure to your life so that you're not always wondering what am i going to do today what's the morning going to be like how am i going to make it through the afternoon really set the tone from the day in the morning now good habits and routines are important and i know a lot of people that like to get up they've worked their whole life and they're retired now and they want to get up and just have a cup of coffee and watch tv watch a little more tv have some more coffee but before you know it it's 11 o'clock and you haven't talked to anybody and you really haven't done much so setting some schedule and some time some self-care time with friends and frankly limit tv i mean i you know watching tv every morning from 7 a.m till noon it's not healthy no but you could even schedule some time to learn to pick up a class to go to the library to read to children to find things in your community that you could do to be helpful and that makes you not alone and isolated so here's the fifth strategy and you've heard this from us so many times and it just makes so much sense this one does come up in a lot of our videos because it helps in so many areas of your life the fifth strategy is exercise every single day move your body move it get up and move it do you know that if you walk 20 minutes a day every day for 20 minutes you can add five years to your life so what about walking with a friend and 20 minutes that's easy walk for 30 minutes with someone and have a chat and catch up so you're now you're exercising and you're communicating with someone you know as we all age movement does become harder but you need to be as active as you can and just know that you can do 20 minutes a day so we hope you do that take it seriously so now let's talk about strategy number six volunteering you know there's so many benefits with volunteering and it's become such a huge part of our retirement transformation program and you know we do bring it up a lot volunteering sharing your wisdom creating your community you know providing yourself with fulfillment sharing and searching your passions we bring that up a lot but it does help with this loneliness and the potential for isolation you know you instantly can find a community of people when you start to volunteer and it could be as basic as working at the local food bank or the library or something but you're going to find dozens of other people in the same position you are in looking for communities so it's really important to give this a shot absolutely strategy number seven would be to try new things learn technology mark and i did a talk one day and there was a bunch of people in the room and one lady raised her hand talking because we were bringing up this strategy about learning technology her name was ava she raised her hand and she talked about the world that technology opened to her allowing her to connect with her family over in italy and how they structured it how she learned face time how she learned zoom how she learned to be able to work all of the technology in her house to really ward off that loneliness and you know how she did it remember her story she got one of her grandchildren to sit with her and work on the iphone with her to learn how to do face time she couldn't believe in her mind that it could happen and then in the end how easy it was for her right so but it really made her feel connected and less lonely and i think utilizing technology in that way is really smart and learn from a younger person it's nice in a community to have people your own age and people younger so and while you're learning technology look for online courses that are out there look for some online learning that can engage you i did that when i went to the university of pennsylvania and i took an entire online online course and i got to zoom in with other kids college kids college kids and i was the old lady but that was great and i made a lot of great contacts doing that no a big thing to remember is you're not alone you can ward off this loneliness but you need to be proactive work on the seven strategies we just mentioned above and listen if you enjoy this please share with your friends and also please subscribe by clicking the subscribe button below don't forget to join our free facebook community the link is down below and it's very interactive where jody and i go live each week you get to ask questions and we can communicate with each other and thanks for listening and we look forward to seeing you again

As found on YouTube

Home

Read More

Step 1 The Retirement Success Process: Investment and Risk Management

foreign welcome back to the retirement income show I'm Mark Elliott here with the CEO and founder of Oak Harvest Finance group we're talking about the retirement success plan once it's in place it's not done it's not finished it's always changing and evolving with you and your life so it's really important to get this in place to have a plan give you more confidence and and be more comfortable in retirement with maybe hopefully not so much stress about where you are again that number is 800-822-6434 to learn more 800-822-6434 Troy's breaking down what is exactly the retirement success plan so it starts with the investment plan then it's the income plan then it's a tax plan then it's a health plan and then it is the estate plan so I want to kind of tie together why that sequence is is important just briefly but if you don't understand if you don't have a proper risk management structure in place obviously you open the potential for losses beyond your willingness to stay the course now it's not just stay the course with the Investments it's stay the course with your retirement success plan with your financial plan so we have to Define what those guard rails are first this is the process of understanding where your risk limitations are so if you think about you're going down a highway and of course you have guard rails on each side and if you go off the highway those guard rails are there to protect you from going into the opposing Direction on the freeway now in retirement when we're talking about managing risk when we can identify these emotional guardrails so are you willing to see and I and I'd like to Define risk in terms of dollars not percentages and I'll tell you why in a minute but let's say you have a million dollars saved for retirement if all that money is in your 401k first and foremost we have to realize that it's not really a million dollars because every dollar in there is tax deferred so we have to understand we're going to address that as part of this process but when we talk about risk we have to understand that not all of those dollars are yours you have a junior partner on that account we want to keep them a junior partner we don't want Uncle Sam to become a senior partner or a majority share owner of your retirement account but just understanding that that not all of that money is yours that you do have a junior partner in that account it ties into this risk management discussion a little bit so when we talk about risk in terms of dollars are you willing to see your account go down two hundred thousand just a question could be yes could be no it doesn't there is no right or wrong answer but by asking these questions we can start to Define where your emotional guard rails are because the number one thing that you can do when it comes to ruining a financial plan or a retirement plan is to have more risks so your accounts go down more than you can mentally tolerate emotionally withstand and then you sell get out sit in cash for two or three years miss the rebound and now you're you're in a you know you're in a bad bad bad spot I can't tell you I mean we've been through this so many times with clients and conversations about you know Troy I've been watching the news I think we're going into recession we need to get out of the market we need to do this or my accounts are down 10 or 20 or when covid hit we there's a plan for for a proper plan accounts for the markets being down 20 or 30 percent so when we talk about risk management and we're asking you these questions the reason why is because we're already planning for recessions we're planning for potential Market crashes this is part of life okay we cannot avoid these things unless we completely stay in cash and if that's the case you might as well bury the money in the backyard and just spend whatever you can and hope you don't run out and eat rice and beans for for for retirement and that's not how most of our clients that's not how most of you want to spend you know after working for an entire career you want to spend your life so are you okay with a 200 000 decline by the way which is 20 and the reason why I Define it in terms of dollars is because a long time ago I had a client come in well it was a prospective client at the time and like most financial advisors we would talk about it in terms of percentages and and we said are you okay with a 10 or 20 decline he said you know what 20 is pretty much my Max and he had around a million dollars so then I I just happened to put it in terms of dollars and I said okay so if your accounts go down two hundred thousand dollars you're okay with that and he said he said no Troy he said I would fire you on the spot and so that you know for me it connected a Big Dot It was kind of a big evolution in my career when I was younger because I realized I'm a financial guy I do this every single day I think in terms of percentages and statistics and and but most people think in terms of dollars so when we ask you that question you say yes I'm okay with a 200 000 or 100 000 or maybe it's not even close to that or maybe it's much much much more what that does for us is it helps to Define what type of portfolio we need to construct so emotionally there's a small probability that it is going to hit your your downside guard ramp and if we can go through retirement and not ever hit that downside guard rail well there's a very good chance from our experience that you're going to stay the course you're going to stick with your plan and if you can stick with your plan you have a much higher probability of success in retirement this is why we call it the retirement success process this is why we call it a retirement success plan this is what we want to deliver to you so now I said I wanted to talk a little bit about the sequence and why risk management in investment planning comes first if we don't and in most simple terms if if your money let's say you have a million bucks and you never had to take anything out if you average four percent versus nine percent at higher rates of return you obviously can expect your accounts to grow to a larger value that means the income planning is impacted that also means that now your tax planning is impacted so we can't build an income plan or a tax plan without first understanding an estimated reasonable expected return for a combination of Securities inside a portfolio so step one has to be this risk management discussion which then can lead us to the investment construction of your portfolio which then gives us a pretty good idea of expected return upside downside deviation so we can now start talking about income planning we can actually project and do a sensitivity analysis on tax planning based on different account levels let me break that down for you before we get into the tax planning section later on the show if you have a million dollars in your IRA you are forced to start taking a certain percentage out it's around four percent at age 72 but as you get to be 74 76 77 you're required to distribute a larger and larger percentage so if your million grows to 1.5 you take let's say four percent of that out that's a that's a number that is less than if your IRA grows to 2 million so the more aggressive your portfolio is or the higher expected return the more we should anticipate that require minimum distribution being a larger number that rmd is the amount you're forced to take out and pay taxes on we've seen clients I I'd like to phrase this for prospective clients because we address this with you as a client this is part of the retirement success process and the retirement success plan but so often when someone comes in here and they've done a pretty good job saving they have eight hundred thousand they have a million they have two or three million when we start to do this analysis if you don't address this tax problem and it is a tax problem it can be you know a tax nightmare for many of you those rmds when we get out to be 75 and 77 or 78 a hundred thousand hundred and fifty thousand two hundred thousand now you're taking that money out you're probably not spending that much on top of Social Security on top of any rental income or real estate income or pension or dividend or interest or any other income that you have outside of your retirement account and we've seen many people be in a much higher tax bracket and have much more income in their 80s than they ever had throughout their entire life up to that point and it's because of a lack of planning so that's what we're trying to get ahead of so we have to understand the risk structure of our portfolio and how we manage that risk so we can keep you on course we can keep you on schedule with your plan that then gives us an idea of a range of expected returns based on basic financial planning Concepts from there we can develop that income strategy and income is not just Social Security it's not just how much to take out don't get me started on the four percent rule but it is also from which accounts and then we get into the taxes so if you don't have a retirement success plan give us a call 1-800-822-6434 we're going to walk you through this process if you become a client you will have this plan in place that deals with risk Investments taxes income along with the rest of the retirement success plan 1-800-822-6434 Oak Harvest Financial Group check out the website check out the YouTube channel Oak Harvest Financial Group so we're talking about the retirement success plan Troy still got a lot to get to stay with us we're back in one minute investment advisory services offered through Oak Harvest Financial Group LLC Oak Harbor's Financial Group is an independent Financial Services firm that helps people create retirement strategies using a variety of insurance and investment products investing involves risk including the loss of principal any references to protection benefits or lifetime income generally refer to fixed Insurance products never Securities or investment products insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company Oak Harbor's Financial Group LLC is not permitted to offer a No statement made during this show shall constitute tax or legal advice you should speak to a qualified professional before making any decisions about your personal situation we are not affiliated with the US government or any governmental agency this radio show is a paid placement foreign [Music]

As found on YouTube

Home

Read More

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]

As found on YouTube

Home

Read More

What Do You Do With Yourself After Retirement? – Dr. Devi Shetty with Sadhguru

Devi Shetty: Sadhguru, I am constantly torn between my senior colleagues, who are extremely skilled surgeons. Sadhguru, the… on the heart there are some procedures, which are done by very few people on this planet. I’ll give an example – I do an operation called pulmonary endarterectomy that’s the blood clots from the leg goes to the lung arteries and it clogs up all the arteries. So twenty… twenty-five years ago there was no cure for this. And once you are diagnosed, you are destined to die within a year. Today people who are on home oxygen for two years, three years you do the operation they can go back to skydiving or they can go to scuba diving. That’s the transformative effect but there are only fifty surgeons less than fifty surgeons in this world who can operate.

And like this we have some of my colleagues who are extremely gifted surgeons. They are in their fifties now. And some of them are constantly talking about retirement. Especially one surgeon he is a extremely gifted surgeon who can fix any damaged valve. He is single, he has no other commitments every other day he talks about going to Banaras or somewhere and retire and I keep telling him that God didn’t create him to retire and meditate. He has to be fixing all these problems So he gives me extension every six months Guruji.

So at the end of six months the usual rigmarole starts, he talks about retirement and everybody is depressed in the hospital. So how do you deal with this kind of people? Sadhguru: You must you must give him a one year sabbatical with me Yes, because the need or the idea of retirement enters anybody’s mind because of the monotony of what they’re doing, whatever it may be. Somebody else may think it's a great thing but in your experience somewhere it's becoming monotonous or stagnant. Stagnation is one thing that human intelligence and human system cannot take. And most of the ailments are because of stagnation stagnation of life. They may be… they may be getting their you know once in three years promotion.

They may be making little more money. All these things may be happening but somewhere experientially there’s a stagnation, which could be a major cause for many of the complex ailments that people manufacture within their systems. The more complex they get you try to create more talented surgeons. I am saying we are manufacturing the problems, we are trying to manufacture a solution. I think as we offer solutions people who have adl… already gotten into problems, they need solutions. But it's very important that we teach people how not to create these problems, so that instead of fifty, you have to produce five thousand expert surgeons to attend to all these people who are on self-help to illness. So I would say a surgeon who is who has a certain competence and who has worked through his life, if he wants to explore something of his own nature, that will be the greatest thing to do because he is not a man without commitment nor competence. When competence and commitment is there, you should not run him through the rig ram role (rigmarole?) and destroy that possibility. It’s important that he explores something of his own nature, which will make him We don't know what he’ll come up with.

You cannot even estimate what he may come up with. I think a sabbatical is good. He may come up with something that you have not thought possible. Devi Shetty: I will… I will convey your message Sadhguru. I am sure he is watching this program.

As found on YouTube

Home

Read More

Let’s Talk About Money So We Can Stop Talking About Money

I want to talk about money so we can stop talking about money because get this when money is no longer an obstacle we can focus on what really matters and become the people we really want to be and money then becomes a tool to help you live a life that you're proud of instead of exhausted by and it gives you more margin more options more joy and more wealth than ever before and you guys can start that journey tonight.

As found on YouTube

We Want To Retire

Read More

How To Retire Before 99% of People (Starting With $0)

simple if you want to retire before everyone else then you need to follow these three steps firstly calculate the real numbers secondly manage the variables and thirdly execute your plan successfully it's really that straightforward but most people don't even get past step one to be honest thirty percent of people have probably clicked off this video probably because retirement sounds too old school for them however you might not actually want to retire early I'll explain why towards the end well that's for the few of you that make it that far step one calculate the real numbers how much do I need to retire this is one of the most searched questions on the internet and no one seems to be able to give the real answer it's no surprise that lots of people are turning to the internet as the school system has left us in the dark they're only interested in pushing us into the workforce so that Society can exploit us for our time and labor if most people actually knew the answer to how much they need to retire then they'd probably an uproar that's because Millennials and gen z's are reportedly going to have to work longer than any other generation the sad truth is many people are deluded some think they'll enjoy round the world cruises on the back of saving fifty dollars a month others believe they'll need so much money that quitting work is an unrealistic fantasy most people are hurtling towards a harsh reality check without even knowing it it's not their fault as they've been set up to fail retirement was much more achievable in my day however that's why it's so important to calculate the real numbers now so you're at an advantage this is kind of like the first step of any road trip setting the destination on your navigation system without air how are you going to head in the right direction right I'm going to cut through all the confusion online you just need to focus on the role of 300.

This rule is so powerful that it allows you to jump forward in time and calculate how much money future you will need to quit your job and still pay the bills it's simple all you have to do is add up your monthly expenses and multiply them by 300. this means if you currently spend one thousand dollars per month then you'll need three hundred thousand dollars saved if you spend fifteen hundred dollars a month this will mean you need four hundred and fifty thousand dollars in your account if you spend three thousand dollars a month you'll require nine hundred thousand dollars and so on you get the idea now I know what you're thinking how much but let's say you do need nine hundred thousand dollars you don't have to save all of that I'll reveal later how you can use the power of compound interest and only have to save around a hundred and ten thousand the rule of three hundred is based on the ability to safely withdraw four percent per year from your savings the idea is that if you put your money in the correct places then it will grow by more than four percent per year allowing you to take from your pot without it running out it's a bit like Hermione's Magic Bag in Harry Potter I know this sounds great but it's very important this is just a rule of thumb and not scientific law like gravity I mean it's pretty impossible to accurately predict the future because there are so many different factors that we can't take into account if anyone tells you otherwise then they're trying to sell you something so yes stock market conditions and inflation could have an impact on your final Freedom figure however still think it's a good idea to use a ruler 300 as a guide and adapt it as you go now you've figured out your destination you can start increasing your odds and get in there which brings me on to step two manage the variables just as you need to use the steering wheel brakes and accelerator in a car to navigate the roads you need to use these five variables to achieve your retirement goal variable one is of course income I highly suggest that you increase your income as soon as possible this is your accelerator and if you're making more than the average you'll be able to retire before most people in my late teens I had an income problem after leaving school at 16 I just wasn't making enough money to pay my rent and go out with my friends let alone save for retirement so I devised a plan to get a pay rise you see I was working part-time in a radio control model shop earning next to nothing I thought to myself how can I get the owner to pay me more for the same work for the next couple of weeks I work my socks off and I kept track of all the sales I made I remember writing down every detail in a little notepad when I got a chance I sat down and I looked at all my notes and compared them with what the shop had sold in that period one thing became very obvious I was making all the radio controlled helicopter cells because of my expertise in flying them that's when it hit me I was valuable to my boss because without me he couldn't sell any helicopters now I had this information I felt confident I could approach him and ask for a raise I clearly explained my value to the business and asked for the increase in Pay I wanted I remember him staring at me blankly for a couple of seconds I thought I'd offended him until he let out a little Grunt and a nod of his head agreeing to pay me exactly what I'd asked for although this was a long time ago the principle Remains the Same now if you want to increase your income then you need some kind of Leverage to have this you need to become valuable maybe you could learn some high income skills such as sales and marketing or alternatively start some kind of side hustle however it actually doesn't matter how much you earn it's all about how much you save and that brings me on to variable two expenses even if you were accelerating at full speed in a Formula One car if you had a massive parachute attached to your rear wing then you aren't going anywhere fast this is exactly what it's like having a good income with too many expenses look I'm not one of those online people that's going to tell you to stop buying Starbucks and enjoying life I think that's a pretty sad way to live if you like those things this variable is more about cutting out the things you couldn't care less for this is actually the perfect time to come back to the rule of 300.

Let's say you spend fifteen dollars per month on Netflix if we multiply that by 300 you'll see that you actually need four thousand five hundred dollars saved in your retirement pot to keep watching indefinitely well this is assuming the price doesn't go up which it most certainly will most people have little monthly expenses so they don't really care about us they seem so small but if you apply them to the rule of 300 they're no small expenses actually add up very quickly as well as cutting out little expenses I also highly suggest being smart about the larger ones I'm talking about rent mortgages and car payments these are the biggest silent wealth Killers as they're a huge drain on your finances every single month but there are a few ways to get around them the first is known as house hacking this is when you buy a house and rent out part of it to a roommate in order to cover the mortgage in America you can also buy something called a duplex which is two separate living accommodations in one house allowing you to live in one side of the house and rent out the other the next is rent hacking this is simply renting out a house and then subletting individual rooms to different people to cover all of your costs but before you start doing this make sure to clear it with your landlord the third is car hacking this is when you buy a car that has lost most of its value already drive it around for a couple of years then sell it for almost what you paid for it and repeat the process if you successfully managed to drive down your expenses and still live a great life then you can start thinking about variable three debt a lot of people aren't going to like this one but you need to master debt some people are totally against It While others are way too Reckless I've always been somewhere in between the two extremes it's kind of like the fuel in your car it can be very useful but it can also explode if you're not careful managing debt is crucial for a retirement planning because carrying too much bad debt can eat away at your savings make it difficult to achieve your retirement goals on the other hand using good debt strategically can help you build wealth and increase your income which can lead to an earlier retirement it's important to understand the difference between the two and make smart decisions about when and how to use debt put Simply Good debt is when you borrow money to buy things or make more money in the future like buying a house and renting it out bad debt is when you borrow money to buy things you don't make any money on like using a credit card to buy clothes expensive holidays or a car that you don't need but here's the real kicker in order to get good debt you need to have a good credit score and the best way to do this is to actually own a credit card you can put little expenses on it and pay it off in full at the end of each month this will mean you never pay any interest and build a good score for the future but like I said the only reason to have good debt is to buy assets which brings me on to variable 4 investing investing is important for retirement because it can allow your money to grow faster than it would if you simply just saved it it's kind of like the Boost pad you go over when playing Mario Karts with the right Investments your money can grow at more than four percent per year which is the amount you can safely withdraw from your savings if you're using the rule of 300 not a financial advisor however I've always invested consistently into the S P 500 which is an index fund that includes the top publicity traded companies in the USA which is historically averaged a return of eight percent per year I mean if you were to invest 200 per month for 45 years which equates to a hundred and eight thousand dollars an average return of eight percent per year then you would have a total of one million fifty four thousand nine hundred and seven dollars that's the power of compound interest but where can you start investing well it's a lot easier than it was back in my day as you can do it all from your phone there are various different apps I'll leave some of the links down below one of my favorites is light year and they are also kindly sponsoring today's video light year is looking to give every European low cost and convenient access to the world stock markets and they're really great at what they do the app is super user friendly making it perfect for both Advanced and novice investors light year is available on mobile and web platforms allowing for a smooth investment process and research the platform has 3 000 stocks and ETFs from the UK us and across Europe including ones that track the S P 500 which I mentioned earlier and there's more on light year you can also earn interest on your uninvested money in three currencies the euro dollar and pound if you're watching this from the UK the Eurozone or Hungary you can download and start using light year today use my code tillbreed and receive a 10 fractional share after making your first investment but let me remind you investing always carries a risk and the value of any investment can decrease as well as increase variable 5 tax the more money you earn the more money the government will try to take off you this is why you really need to use the tax loopholes to your advantage this is kind of like your fuel tank leaking if you don't plug the holes then you'll have nothing left by using tax advantage accounts such as Roth IRAs and 401ks in the USA and Isis in the UK you can reduce the amount taxes you owe on your income and Investments these accounts allow you to invest and avoid paying tax on the money you make but the amount you can put into these accounts is limited every year so I strongly suggest that you fill these up as soon as possible and now you're ready for step three execute your plan just like you need to address your driving style based on the road conditions and traffic you need to adjust your approach to managing the variables in order to execute your plan successfully put simply the following techniques will help you become a better driver firstly develop an Roi Obsession when I was growing my wealth I was hyper focused on making sure that everything I bought at least made me back the money I spent on it a good example of this nowadays is the MacBook Pro it's a great tool that can allow you to make far more money back than you spend on it however if you just play games on it then you'll have to save all that money up again the hard way think about how you can use everything to make you more money that way you'll never have to start from zero more than once secondly measure your progress make a habit of setting clear money targets every month I remember not only doing this but also sharing them with one of my friends I did this because I wanted him to keep me accountable if I missed a Target it's actually been revealed that this improves your chances of achieving a goal by 65 thirdly stay cash poor a lot of people might not agree with me on this one but I think if you save too much money in a simple bank account then you get too comfortable I know I perform best when I'm on the ropes and have a lot of pressure to succeed by keeping myself cash poor and investing all of my money back into my index funds and businesses I was able to motivate myself to earn more and remain flexible not stuck in my old Comfort Zone in the old ways this concept is also known as paying yourself first as you prioritize your Investments and then pay your expenses which is money going into other people's pockets put simply invest first then full yourself to find the other money you need now for the people that have made it this far here's why you might not want to retire traditional retirement was created to help encourage older people to leave the workforce and make room for younger people however retirement can lead to a loss of purpose and drive and many people find themselves getting ill or losing motivation I discovered this first hand as I had enough money to retire in my late 20s I took a couple of weeks off and was tired to lose the will to live I lost purpose and that's when I started looking into two different options the first I'm calling micro retirement this is a concept where you take a break from work for a short period of time to pursue personal interests and travel with the intention of returning to work afterwards it's different from traditional retirement as it's not a permanent state of not working but rather a way of taking a break from work and returning to it later the idea is to break up the years of work with periods of leisure and Adventure allowing for a more fill in life overall now even though this sounded better it still wasn't for me I feel like wasting my time doing something I didn't want to do that's when I came across the second alternative option lifelong retirement for me retirement means freedom so I don't have to do anything unless I absolutely want to that's why I built business around doing what I like to do day to day if I don't like doing something then I just hire someone else to do it I'm sure some people have already commented if he's actually retired why is he making his YouTube videos the answer is that I genuinely enjoy doing it who wouldn't like filming videos and helping people out whoever said money doesn't make you happy hasn't given enough of it away and I think that's even more true for giving away knowledge if you'd like to know seven passive income ideas you can start right now then watch his next video but don't click on it just yet make sure to subscribe if you want to grow your wealth okay I'll see you over there

As found on YouTube

Home

Read More

Planning for Your Retirement with CPF – Part 2 (CPF LIFE)

Hi everyone, I'm Caroline from CPF Board and today I'll be sharing more on CPF LIFE. Remember how we talked about the uncertainty of not knowing how long we can actually live? 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. CPF LIFE addresses this uncertainty by providing payouts no matter how long we live. However, which is the best CPF LIFE plan for you? The key to choosing the right CPF LIFE plan depends on what kind of retirement lifestyle you want. Let me show you what you need to consider. Cost of living can have a huge impact on how much you need for your retirement. From year to year, price increases may not be so obvious, but your retirement takes place over 20 to 30 years and the impact of rising prices can be significant. Let's take chicken rice for example. It costs $2.50 about 10 years ago and it's about $3.50 now.

So if you are worried about things being more expensive as the years pass, you need a retirement income that increases every year. CPF LIFE Escalating Plan provides you with monthly 
payouts that increases by 2% each year for life. Under the Escalating Plan, a monthly payout that starts at $1,000 when you're age 65 would reach about $1,500 when you're 85. This protects you against rising prices. If you prefer to keep within a fixed budget, choose the Standard Plan. It offers a level monthly payouts. However, this means that you may afford less for the future as things become more expensive. The Basic Plan is the legacy plan carried over from the time that CPF LIFE was first introduced. The monthly payouts under the Basic Plan are lower and will get progressively lower when your CPF 
balances eventually fall below $60,000. This is because the extra interest earned on your Retirement Account savings and paid as part of your monthly payouts which will decline where balances fall as payouts are made. The choice of plan depends on what you value. All three plans provide you with monthly payouts no matter how long you live and allow you to enjoy the interest earned.

Now that you know what to consider when choosing your CPF LIFE Plan, let's take a closer look at how you can continue to enjoy lifelong monthly payouts even after your own savings have been fully used up. When you join CPF LIFE, the retirement sum you have set aside will be used as a premium for CPF LIFE. Your CPF LIFE premium will continue to earn the same interest rate as your Retirement Account savings. You will receive monthly payouts from your CPF LIFE premium first.

The interest that you earn on the premium is also factored into your monthly payouts. After your CPF LIFE premium is fully 
exhausted, you will continue to receive monthly payouts from the interest that you and other CPF LIFE members have accumulated. When you pass on your CPF LIFE premium balance, if any, together with any remaining CPF savings will be distributed to your loved one swiftly. We have now come to the end of this video. If you'd like to get started by estimating how much you need to save to attain your desired CPF LIFE monthly payouts, you can check out the CPF LIFE Estimator. You can do so by clicking the link in the description box. Thank you for watching, I hope you found it useful. If you like this video, do subscribe to our social media channels to look out for more. Till next time, goodbye!.

As found on YouTube

Home

Read More

New IRA & 401K Early Withdrawal Rules Starting in 2024 | Early Retirement Guide

President Biden just signed a 1.7 trillion dollar government spending bill on December 29th which includes the 53 billion retirement bill that will have a lot of changes starting in 2023 24 and 25. a few weeks ago I did a video on the new 401K perks and Rule changes this video is to focus on the withdrawal rule changes for tax penalties for your IRA and 401K generally speaking if you touch your retirement before you turn 59 and a half there will be a 10 tax penalty and there are already exceptions to the 401k or IRA 10 penalty rule If you experience a significant life event but there are four new rules that I want to make sure that you're aware of however unless it is a matter of life and death I would never recommend or encourage you to make an early withdrawal from your retirement accounts taking money out of your retirement accounts should be your very last resort my wife and I have a fully funded emergency fund that will cover at least six months of expenses if one of us loses job becomes physically incapacitated or has any significant life event and we will always deplete our cash and investment accounts before we touch our retirement accounts because every dollar I withdrawal now will have severe consequences and possibly even delay my retirement but I want I want to make sure you guys are aware of the rule changes so you can educate yourselves about your retirement accounts but anyway I'm gonna put chapters in this video so you can feel free to jump into the video that applies to your financial situation and if you need help with your personal finances like creating a budget or savings plan to achieve your financial Independence you can't schedule a free one-on-one 20-minute Financial coaching session by visiting fivestarchy.com coaching the first provision that got added under secure act 2.0 was a terminal illness and it surprises me that it took Congress this long to waive the 10 penalty for people with terminal illnesses the law defines terminally ill as an illness or physical condition that can be be expected to result in death within 84 months of a doctor's assessment which will be substituted for 24 months so if you haven't reached the regular retirement age of 59 and a half and you're diagnosed with a terminal illness with a qualified physician then the IRS will forgive the 10 penalty but you'll still owe federal and state income taxes this is on page 2280 of the 4100 page Consolidated Appropriations Act of 2023 the next provision they added was to allow domestic abuse victims from a spouse or domestic partner to withdraw up to ten thousand dollars in retirement funds within a year of the incident this rule will take effect in 2024 and I'm not sure why we can't start this now but this is on page 2253 of the spending bill in section 314.

It's up to ten thousand dollars or fifty percent of the present value of the non-forfeitable accrued benefit of the employee under the plan and the one-year period begins on any date on which the individual is a victim of domestic abuse by a spouse or domestic partner the definition of domestic abuse is on page 2254 under subparagraph two now I've seen comments in the in a past video about how stay home spouses or parents can't have any retirement funds as a stay-at-home parent or spouse you can actually set up what's called a spousal Roth IRA if you and your spouse are filing your taxes jointly I did a video on that and I encourage you to share that video with people you know and look if you're a victim of domestic violence or abuse please call the National Domestic Violence Hotline at 1-800-799-7233 people who have physically abuse their spouses or partners are some of the biggest pieces of crap or just scums and I witnessed domestic abuse as a child growing up and no one ever deserves to be abused and you should never be responsible for your partner or spouse's abuse of actions let me move on to the next topic before I get all spun up the next two Provisions are pretty much the same but starting in 2024 you won't get penalized with joining retirement funds for certain emergency expenses and these emergency expenses must be considered unforeseeable or immediate costs related to personal or family emergencies you can withdraw up to one thousand dollars a year and I mentioned that in the 401K video but you're going to be waived to 10 penalty as well you still have to repay the initial distribution of one thousand dollars within three years unless you make regular contributions to your 401k that eventually reach your withdrawal amount and the other one is allowing Americans to withdraw up to twenty two thousand dollars without the 10 penalty in the case of a federally declared disaster so hopefully you don't have to go through this but if you ever experience a loss of Home due to a tornado hurricane or earthquake and need more than what you you're having your emergency fund the 22 000 is taxed as gross income over the next three years instead of one year so instead of being taxed twenty two thousand dollars you could be taxed for just seventy seven thousand three hundred every year for the next three years starting on page uh 2285 of the spending bill it tells you that it needs to be a federally declared disaster so if you had a flood like I did last year for my broken toilet bowl you're not going to be qualified for the special distribution so we came home from a four day vacation to a flood at home because our toilet bowl cracked right down the middle and I will show you the video right here and it took us about four months to completely replace the flooring drywalls and painting and this is why I strongly encourage you to get my financial Independence resources including spreadsheets for savings and Investments for absolutely free by visiting.com contact you can also check out the fire such as shop if you're looking to start your own YouTube channel and I have all of my books and equipment at 5 shopping and here are the existing exceptions to the 10 penalty for those under the age of 59 and a half the first one is using your IRA for higher education expenses the IRS will actually waive your 10 penalty uh if you use your IRA funds to pay qualifying higher education costs for you your spouse your children or even your grandchildren the eligible cost will include tuition fees books and other school or education related expenses and keep in mind that this is for students in a college University or Vocational School in my opinion you should not use your IRA to fund your you or your children's education who have the 529 College savings plan to do exactly that you should treat your IRA as your retirement account right just remember that your children's College will last four years but your retirement is forever the next one is the first time home buyer exemption with your IRA and the definition of a first-time homebuyer is actually someone who hasn't owned a home in the last two tax years you can withdraw up to a lifetime maximum of ten thousand dollars without the ten percent penalty from your IRA and according to the IRS you have to use ten thousand dollars within 120 days of the distribution you can use the money for yourself your spouse or your child if you and your spouse are both first-time homebuyers you can each withdraw up to ten thousand dollars from your IRAs without penalties my advice is not to use your IRA to buy a home because once again you could significantly delay your retirement if you withdraw that ten thousand dollars now the better question is how long will it take you for you to save ten thousand dollars in a high yield savings account the next existing provision is to use your IRA to pay for your health insurance premiums if you lose your job and you have to provide proof of unemployment compensation from the federal or state unemployment program for 12 consecutive weeks you owe also have to make the IRA withdrawal without the 10 penalty within the same year or the following year that you received unemployment compensation and the other waiver is a distribution to cover your medical expenses we all know how broken the U.S Health Care system is but you can't withdraw up to 7.5 percent of your annual adjusted gross income to pay for your unreimbursed medical expenses so for example if you your adjusted gross income was one hundred thousand dollars in 2022 then you can make a withdrawal of up to 7500 to cover your unreimbursed medical expenses if you got your medical statement in 2022 and you didn't make the payment until 2023 it will still count for the 2022 tax year so I just want to make sure you're aware of that the IRA withdrawal will also have to happen in the same year in 2022 to get the penalty waiver and if you just had a baby or adopted a child each parent can actually use up to five thousand dollars per birth or adoption from their retirement accounts the withdrawal just has to be the same year your child was born or the date you legally adopted your child and and the other provision that's been around for a while is waving a 10 penalty for reservists who got orders or called into active duty for at least 180 days if you need to make a withdrawal for some reason you have to provide proof of your military orders and make sure the withdrawal day happens on or after the first date of your orders let me know in the comment section down below if you are a veteran I'm an Air Force veteran myself and I've helped many veterans get out of debt budget and save for their future if you ever have any questions you can always hit me up on Instagram and just say hi on Instagram or go to Fireside chat.com contact to schedule a one-time private coaching session for completely free but if you want to just stay on YouTube and you want to watch more videos about the new 401K rules and how I'm saving to retire early by age 45 be sure to check out these two videos so with that said I appreciate you watch my video don't forget to subscribe and I hope to see you in the next video have a good one [Music] thank you

As found on YouTube

Home

Read More

Retirement Social Security: Should I Withdraw Social Security at 62 or 67 with $1 Million?

so you're getting close to retirement and the question is when should you take Social Security should you take it at 62 should you take it at 67. it's kind of like the old Chicken and the Egg discussion which came first well in this video I'm going to show you some circumstances where it might make sense for you to take it at 62 but I'm also going to show you why it might make sense to wait until 67.

[Music] hi I'm Troy sharp CEO of Oak Harvest Financial Group certified financial planner professional host of the retirement income show and also a certified tax specialist when it comes to Social Security there's usually two types of people we come across the first one says Troy when I retire no matter what I'm taking social security and the other truly has questions when does it make sense should I defer Social Security longer because I've heard that that makes a lot of sense well the truth of the matter is your circumstances your individual circumstances dictate when you should take Social Security and those circumstances today may very well be different when you get to be Social Security age so I want to cover some of those situations that may change your timing for when you elect Social Security and I also want you to know how that impacts you long term as far as your financial security how much money you have how much income you have before we continue if you'd like to support the channel just hit that subscribe button share this video with a friend or family member or comment down below so let's take a look at John and Jane they're both 61 they come in they say Troy you know what we're tired of working we really are thinking about retiring and we know we can take Social Security next year at 62.

Does that make sense should we do that so this is a case study but John and Jane right now both making about seventy five thousand dollars per year so the first thing we're going to do is look at can John and Jane retire at age 62. now we have to pick a mortality date here so we start in this example at age 90. now one spouse could pass away before another spouse so we can always move these sliders back and forth and that would impact the probabilities and the right choice for taking social security but for now we're going to plug these in both spouses live into age 90 can they retire at age 62. we have to look at some goals here too because the the decision of when to take Social Security should not be made in a vacuum just because you get more from Social Security if you defer it longer does not mean that you should always simply defer Social Security longer there are some big things we need to understand first when do you want to retire how long are you going to live how many assets have you accumulated how much money do you have how much do you want to spend in retirement because that is a big determinant of how long your money will last and also when you should take Social Security so we have to first and foremost realize that the decision of when we elect Social Security each spouse has to be made within the context of the other parameters within retirement now for John and Jane here they want to spend a baseline income of about fifty thousand dollars per year but they're healthy and they're active they're retiring young the target date here is 62.

They want to spend an additional 60 000 in what we call the Go-Go years so a total of a hundred and ten thousand dollars for the first 10 years of retirement so from 62 to 72. after that 10th year they want to reduce the spending but they're still planning on being a little bit active going out to eat spending time with friends probably kids kids grandkids Etc they're going to reduce the total spending to from from the go go of 60 to 25 so 50 plus 25 is 75 000 all adjusted for inflation for another eight years here I'm just kind of randomly putting some numbers in of what we usually see when we sit with clients when we go through the income planning discussion and what retirement success looks like to you and this is something common to what we may see in this situation so 110 000 for the first 10 years of retirement then 75 000 for years 12 through 20 and then all of that goes away except the Baseline spending of about fifty thousand dollars a year and of course that's adjusted upwards for inflation 20 years from now that's going to be close to about a hundred thousand in today's dollars as far as purchasing power of that 50.

Now I like to start the analysis at age 67 so full retirement age so when we start to look at these parameters of when it makes sense that the Baseline I like to start at is 67. so in this scenario John has thirty six thousand dollars or three thousand a month at full retirement age of 67 if he waits that long Jane will have thirty thousand dollars in retirement benefits at full retirement age we call it fra for short if she waits until age 67. okay I told you there were four big things there we've already covered two of them how long they expect to live age 90 how much they want to spend we went through that go go spending plan now how much have they saved because these are the things that we have to look at in context of making the decision of what makes the most sense regarding the age to start social security for both spouses so in this example we have 250 000 inside James 4 1K John has about 700 000 inside his 401k and they've managed to save about fifty thousand dollars outside of retirement accounts for a total investable asset level of 1 million bucks now I'd like to point this out as well they have a five hundred thousand dollar home no mortgage so that's kind of always in our back pocket if we need to tap that home equity line possibly a reverse mortgage or if we want to sell and downsize generate a little additional cash for the Investment Portfolio or to spend it's always nice to know that we have that option okay so remember I said I like to start the Social Security analysis when deciding between taking it a 62 or 67 or anytime in between or even later I like to start the Baseline at 67 to kind of see where we are and how everything plays out so I'm going to hit the magic button and based on the Go-Go spending period retiring at 61 taking social security at 67 having one million dollars in assets by the way not assuming that the home is sold we just know that's in our back pocket but it's not used to fund any goals a couple things I want to point out here first 81 probability of success that means out of a thousand different simulations assuming all these different market returns across all these years and I want to also point out this is not using uh back tested data this is using assumptions and forecast moving forward for the current economic environment that's very important to understand so 81 is not a hundred percent but is it good enough to retire yeah absolutely as long as we stayed connected to what was going on in our plan as far as how our portfolio is doing how much income we're spending the economic environment all of these various factors we would just want to monitor it a bit more closely to make sure that we weren't going down from 81 but the second thing I want to point out here is look at the kind of the trajectory so these are a thousand different simulations here and the thing that sticks out to me is taking social security at 67 and spending that amount of money we see in in literally all of these simulations that the the portfolio balance this is what this represents so we're starting at a million on the y-axis here you see it's 2 million three million and then on the x-axis it's going out years 2025 2030 2035 but in almost all of these simulations the account balances are depreciating so that tells me immediately that I want to have a conversation with you that that if we defer Social Security until 67 would you be comfortable seeing your account balances spend down because from my experience When people's account balances are spending down in retirement even though they know they have a much higher guaranteed income from Social Security people get nervous and when you get nervous in retirement especially during a recession you can make bad decisions and bad decisions are typically the one thing that can really throw your retirement off track if we allow our emotions to dictate our actions we can blow an entire plan up in the best plan out there will get blown up from bad decisions typically driven from emotional feelings behaviors Etc okay now we're going to take a look at Social Security at 62 versus age 67 and we're also we're going to look at age 70.

So what we have up here is is full retirement age both taking it 62 both taking it at 70 and then one spouse at 70 one spouse at 67. we're going to look at the probability nothing's changed except when we take Social Security okay so the the what we just looked at the current 82 percent the reason this is one percent higher than the 81 is another simulation has run but we're right in that range I want to point this out here so this is interesting the age 62 of both spouses take it at 62. it's very very close to the full retirement age probability so when we're doing a statistical analysis of all these different variables to me there's not a ton of difference between 79 and 82 81 somewhere in that range these are very very similar now when we look over here at age 70 this is the one I want you to kind of really let soak in and understand why so we have a couple that wants to retire early but they also have a pretty big spending goal in mind because they want to enjoy retirement they want to spend it together they want to travel spend time with the kids that 110 I think was the goal 110 000 during that first 10 years of retirement in the Go-Go years this means we do have to draw down the assets we need to be comfortable with that but we also need a plan on where that income is coming from how we're going to protect some of the assets but also we want to make sure that these other decisions are being made correctly as well so 62 and 67 very similar but if if they were to just follow the the most recent article they read on CNBC that says you should defer your Social Security as long as possible and they waited until age 70 yes they would have significantly higher annual income but they will have spent down the portfolio to such an extent that that might be all they have so big difference here between taking it at 70 versus 62 or 67.

Now your situation is completely different I'm not telling you to not take it at 70 because for a whole lot of our clients that is the right thing to do mathematically the other side of that coin is mathematically is not always the right answer working with clients for many years I know that emotionally if we put a plan together and this is a conversation we'd have with you if we put a plan together that had you deferring Social Security longer but your account balances were declining in value not because the market was going down just because you were spending from my experience that would be very difficult for a lot of people to continue to spend the amount of money that they have been spending and still feel comfortable that they're going to be okay for the long run so this is why staying connected to the plan and having ongoing conversations and making sure you're attending your reviews and and and make sure that you understand where you're at I also want to to briefly just talk about the dynamic spending concept things change in retirement things change in the markets things change in the economy so when we're having these types of discussions if we're not comfortable you have to communicate that because we can pivot we can go in a different direction for some of you it may make sense to take it at age 62.

for some of you it may make sense to take it at age 67 and others age 70. but make sure you understand that this plan of yours it is a living breathing organism it needs water it needs sunlight it needs to be paid attention to and things are going to change pay attention to your your emotions how you're really feeling about your account balances is that impacting your spending decisions are you having trouble sleeping at night if so that's a conversation that that you need to have with your advisor but all of these different pieces working together from my experience that's how you have a higher probability of success in retirement and also sleep better at night [Music] foreign [Music].

As found on YouTube

Home

Read More

Why is Everyone So Tired in Retirement?

you know after slugging it out for over 30 years in Corporate America I was exhausted when retirement arrived I really needed a break and I needed a break too so we spent the first few months in retirement really doing nothing nothing meaningful right well hanging around kind of lazy mornings turning into lazy days into lazy weeks and maybe even lazy months but we knew something had to change or we were doomed we wanted our dreams of a fulfilling retirement to become a reality so we had to make some changes so today we're going to share with you some strategies that you can try so that you're full of energy every single day and take on anything that comes your way but before we go further we'd like to introduce ourselves my name is Mark Rollins and I'm Jody Rollins and we started retirement transform not only for us but for all of you and the other 10 000 people turning 65 every day now we don't focus on anything Financial none of the aspects financially or retirement but we focus on lifestyle Health relationships and more and listen if you're new here please hit the Subscribe button and also the notification button so you'll get notified when our videos come out so let's jump into all the things that tend to make you and me tired especially in retirement okay the first thing that gets you tired too much downtime and that might just be for instance watching too much TV and I don't know if you know this or not but the average number of hours people over the age of 65 watch TV each week is 38 hours a week that's like Couch Potato syndrome it is and you have to be careful with that because it does make you tired nothing wrong with watching a Netflix series or some TV but you can't do it six or eight hours a day yeah lack of movement will really keep your body and your mind tired you have to find ways to move your body even 20 minutes a day just getting out walk 10 minutes One Direction and 10 minutes back and you will feel very different what happens if you walk seven minutes one way and four minutes back and then you have to do 10 jumping jacks oh and then all right because you're going to be late yeah but there's a scientific study multiple scientific studies that say moving 20 minutes a day can extend your life by five years who wouldn't want that exactly exactly so the first one is too much downtime the second one is poor nutrition and we know you've heard this before but please just make believe you're hearing it for the first time poor food choices fast food sweets and too much eating out or even eating late is bad for you being mindful of what your comfort food is and how much you go to it is also something to be aware of yeah I think that you know for us we're getting a lot better with nutrition and really because we're starting to really pay attention to what our ordering tells us about sleep and how we feel but also just our body when we put certain foods in our body we really pay attention to how we feel and having wine or drinks and a late dinner at night we both know we're going to have an awful night's sleep but you didn't bite on comfort food comfort food I you know I need to stay away from comfort food fried chicken Oreo cookies chocolate chip cookies that's the stuff that my mother always made for me and it was Comfort I I need to stay away from that yeah and I know I know it's hard to in retirement to stay away from wine and drinks maybe that's me but um you just be mindful of it and to give your yourself and your body a break from it is really a good feeling yeah and all of what we just talked about leads into the third uh item to make you tired which is getting poor sleep and honestly we need to do an entire video on sleep because I just looked and we really haven't spent enough time on this and the importance of getting a good night's sleep most people need seven to eight hours of good sleep in order to feel good and have high energy absolutely and you know the eating late too much alcohol just doesn't help that you a good portion of our lives in Corporate America and you as an entrepreneur entertaining clients and living that way eating late entertaining clients some wine with dinner and we knew it wasn't sustainable so what makes us think in retirement that that would be sustainable well it's funny because our last five years of work really we were probably working harder than ever before we were entertaining harder than ever before that was our normal and when we got to retirement that normal didn't work for us it really didn't so you just have to be able and to think about making some life changes and it's not easy but it's doable so we have sleep as the third one good sleep quality sleep not just time in bed right the fourth one is really lack of routines during your career you had your routines wired I know you did you had a morning routine during your career and then you were off to work and your day was planned a lot of time your schedule was filled before you even got into the office but many people enter retirement and the last thing they want to do is have a routine I know and you know we hear that a lot but we also hear from our clients when they start with a routine even a basic routine going to bed at the same time getting up at the same time and it doesn't have to be 5 a.m like me I mean you don't get up at five minutes you've got your own routine I don't sleep I do but you have a routine once they start plugging in a routine getting up at the same time every day plugging in a little bit of uh walking for 20 minutes and exercise maybe on top of that doing some meditation with a app like headspace mindfulness that really starts to kick in their energy level and makes them feel better in their retirement phase and you know I really resisted this idea of setting a regular time to go to sleep and a time to wake up in retirement and I don't know if you remember I pushed back pretty hard on Mark started at like 10 o'clock we're gonna you know go to bed at 10 o'clock or you know he wants to be in bed at 10 o'clock which really many wanted to be asleep at 10 o'clock which meant bed 9 30.

Yeah but you also weren't going to let me go to bed alone that's just a me thing right so you so you dragged along with it I did you laid there with your eyes open for an hour in the beginning well I would read or something but but oddly enough our clock kept kind of going backwards the other thing I'd say about routines is I got a call this week from one of our 25 year olds we have two 25 year old twins Jordan that lives in New York City and she said you know something mom starting Monday getting back to my routine and I found that so interesting that the self-care part of routine and sleep and waking and all of that is being ingrained in the younger generation which is great it is great so another reason that you might be tired you could have some underlying health issues that you don't know about it's so important to go to your doctor at least once a year and have things checked out because as we age things in our body change and it could be that there's something going on that's keeping you awake at night that's making you feel tired during the day so going to see your doctors on a regular basis is so important yeah there I mean there could definitely be some issues going on that need to be addressed and you know we have friends that actually have said to us we never go to the doctor because we don't want to look for trouble and I'm just not sure that that's a great way to live through this phase of your life yeah and you know in retirement if you're not exercising and you're eating and drinking more than you used to you're going to gain weight a lot of people gain weight in retirement now all of a sudden you pick up an extra 10 15 20 pounds and it's slowly so you don't notice it but that leads to diabetes so you want to get your heart checked you want to get your body checked you want to go see your doctor I recently went to the doctor and found out that I had plaque buildup on some of my arteries that's it yeah it's a scare I suppose but it also has helped get me focused on doing the right thing eating better exercise and getting good sleep yep because that you're on could be out of balance again this goes back to checking with your doctor you know if you're not sleeping and you're gaining weight and you're having trouble going to the bathroom or you're going too much you know find out why it's just not something to sweep under the rug yeah you know if you're getting up four times a night to go to the bathroom it could be as simple as you shouldn't drink water two hours before you go to bed or it could be something else or it could be a medication that you shouldn't take in the afternoon you should take in the morning or yes the important thing we're trying to get across here is see your doctor check your meds you know I was pre-diabetic seven years ago and I changed that with diet and exercise so you can actually be proactive and make some changes as well don't have your doctor just say here's some meds talk to them more about what some of the things you can do to change your lifestyle to become healthier so we hit the doctor we hit the meds let's go to the seventh thing that we came up with you know dehydration dehydration for sure will make you tired that's a no-brainer it leads to all sorts of problems poor sleep heart rate issues blood pressure problems brain damage even death you had an episode a couple of summers ago with dehydration I did I was working in the yard I was working really hard I was sweaty and I wasn't drinking water did all that work it was a hot humid day showered we got dressed to go to dinner we walked down the street to have dinner you know I don't know 500 feet and right in the beginning of the dinner basically long story short I just went down and I fainted and I had to be taken to the hospital and that was preventable it's not hard to effects you need to drink one half your body weight in ounces of water that's a minimum I weigh 160 pounds that's 80 ounces of water a day that's seven to twelve glasses of water a day it's not that hard right right it really isn't it really is and it's so so important to do that so listen it's okay to have lazy days it's okay to splurge with food and wine you know it's okay to binge watch TV but not every day not for your optimal retirement it just isn't sustainable and there's nothing worse than feeling tired all day long and you know people that say that right they get up and they say oh tired midday they're like oh my God I'm so tired yeah don't you get tired of hearing people say how tired they are yeah and maybe some people just say it but you don't have to it doesn't have to be like that right you want to try a day or even a week implementing what we shared today and see if there's any changes that play take place see how you feel you actually might like it you might find a new normal and it becomes a habit now we hoped you like these strategies and changes that we talked about today check out our next video extend your life in retirement by avoiding these four bad habits these are definite changes you need to make so watch this video to go deeper on extending your life and being healthier

As found on YouTube

Home

Read More