Month: April 2023
CalPERS Quick Tip | Choosing a Retirement Date
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Participants commonly ask, “When’s the very best time
to retire?” While there’s no one-size-fits-all solution
to that concern, there are a few things you need to consider when choosing a retirement
date. Choosing a retired life day is an important
choice, and also can depend upon a variety of elements. One approach is to figure out just how much cash
you’ll require in retired life, and also work in reverse from there– considering the 3
elements that influence your pension: your solution debt, advantage element, as well as last compensation.Now, Solution Credit rating is your total time spent on duty with CalPERS-covered companies. Obviously, the longer you work, the much more solution credit you’ll earn. But since of the means it’s determined, 10 months of permanent work throughout a amounts to one full year of solution credit history earned. If you function full-time, starting in July, you’ll earn one year of service credit report by the
following April, as well as won’t make any type of a lot more in May or June. Something to consider if you’re aiming
at a bump in solution credit history prior to retirement.Depending on your company, you may have the choice to transform your
unused sick leave to service credit report when you retire
.( As a matter of fact, 2,000 hours of authorized leave amounts to one year of solution credit). Trip as well as other leave kinds, nonetheless, can’t. be converted; so, you could decide
to utilize those hrs while you’re still utilized,. gaining more service credit as you postpone retirement. We recommend calling your employer’s. employees office for specifics on how your extra leave time is handled.Now allow’s consider your advantage variable,.
which is the percent of pay you’re entitled
to for each and every year of service debt you’ve. earned. It’s based upon the retired life formula contracted. by your employer, and your age at retired life.
When you’re eligible to retire, your benefit. factor enhances with each quarter year of
age– that is, 4 times annually based. on your birthday. If you were born on February. first, then your advantage factor would raise on that day, however on May first, once more. On August first, and also then again on November.
So, retiring on or after your following birthday celebration. quarter can imply a higher benefit aspect, causing a higher pension quantity in retired life. The third variable influencing your pension plan is. last settlement, which is a standard of your greatest monthly pay price. Your last settlement duration may cover your. last 12 or 36-months of work, depending
on your beginning date and your employer’s agreement. arrangements. To optimize your last settlement quantity,. take into consideration preparing your retired life day around
a promo or any various other event resulting in. a pay raise.Check out the retired life estimate calculator.
in” My CalPERS “to discover just how changes to your solution debt, benefit element, and. last payment amounts may affect your pension plan.
Which should aid in choosing a retirement. date that works finest for you. To find out more regarding preparing for retirement,. visit calpers.ca.gov/ education
.
It’s based on the retirement formula got. After that your advantage factor would certainly increase on that day, after that once again on May first, once again. The third factor influencing your pension is. Which need to help in picking a retired life. To discover even more regarding intending for retirement,.
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RRSP MISTAKES in Canada to AVOID! // Tax Free Investing & Retirement Strategy // Canadian Tax Guide
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
hey guys it'' s adrian here the canadian in a.
tee shirt as well as today i'' ll be breaking down the most significant rrsp blunders to prevent in canada the rrsp.
the licensed retirement cost savings strategy is just one of the most powerful investing devices available to.
everyday canadians to money their retirement if made use of appropriately you can decrease your tax obligation expense as well as.
develop long-lasting riches for the future however the regulations can be complicated and a great deal of canadians are.
not making use of the rrsp appropriately in this video clip i desire to address some of one of the most important errors.
concerning the rrsp that you may not know and also could be costing you a great deal of cash in the lengthy.
run ensure you see my previous two video clips rrsp described where i go over how the rrsp works.
the policies to adhere to tax deductions withdrawals and my investing approach to get one of the most out of your.
tax obligation protected development click the pop-up on top right or click the web link in the box below to enjoy.
those videos initially to learn what you need to carry out in an rrsp this video is everything about what you need to.
refrain in an rrsp as an incredibly quick summary the rrsp is a tax sheltered account developed to fund.
your retirement the rrsp uses 2 main benefits one it permits your financial investments to grow tax-free.
this is very powerful and also your financial investments will certainly grow much quicker inside an rsp than they.
would in a non-registered account the 2nd benefit is that the rrsp permits you to delay your.
taxes for many years or years up until retirement you have the ability to reduce the amount of taxes you pay currently.
in your high revenue years as well as pay a much smaller sized tax bill when you retire as well as are in a much reduced.
tax bracket the catch is that there is a restricted amount of payment area which is why you.
have to be clever and also make the many of it and also that takes us to our first mistake using the rrsp.
as an interest-bearing account this is aggravating because the name itself is misguiding it has words.
savings in the name yet really the rrsp ought to be used as an investing account the actual power of the.
rrsp is to spend in the lengthy term and also have your investments grow and also intensify tax-free year after.
year but using your rrsp as an interest-bearing account is truthfully squandering its power rates of interest are.
traditionally reduced so your interest-bearing account at a large bank will pay you around 0.1 percent in passion.
that is pitiful also the very best interest-bearing account in canada eq financial institution just pays 1.25 percent as well as that.
doesn'' t also match inflation you'' ll hardly gain any type of passion revenue and also so you'' re hardly conserving.
any cash on tax obligations anyway instead if you invest in top quality supplies and etfs as well as hold them in an.
rsp you can accurately earn over seven percent each and every single year which'' s the sort of earnings.
you intend to conserve tax obligations on i talk concerning this in better detail in my tfsa mistakes video a great deal of.
those mistakes apply to both the tfsa as well as the rrsp so make certain you inspect that video out as well the.
rrsp is a lot more challenging as well as there'' s a whole lot more that'can go wrong to make sure that ' s what i intend to focus. on in this video however here ' s the lower line to build lasting wide range hold financial investments in your.
rrsp leave your cost savings from it much like the televisions state you have a restricted quantity of contribution.
room and also it is your duty to keep track of how much offered space you have however unlike.
the tvsa your rsp area depends on your revenue and there is no minimal age restriction so even if you are a.
teen as long as you earned revenue you can open up an rrsp prior to the age of 18.
Here'' s just how it works. your rrsp contribution room will certainly be 18 of your made earnings from the previous year earned income.
includes your routine employment revenue from your work plus your net service income as well as web rental.
revenue notification that made revenue does not include investment revenue so returns and also capital gains.
do not gain you rrsp space allow'' s claim you run an incorporated service and also you make a decision not to pay.
yourself a salary and you just pay on your own in rewards this does not count as earned revenue.
You won'' t earn any kind of rrsp payment space also note this 18 quantity is covered at a yearly maximum.
for 2022 this maximum is 29 2 hundred and also ten dollars so if you make two hundred thousand.
dollars a year you don'' t get eighteen percent of that in rsp space you ' re covered at twenty.
9 thousand yet if you make a hundred thousand dollars a year you'' ll gain eighteen percent of. that or eighteen thousand bucks in rrsp room but this is very important you'' ll just get this brand-new. room next year when you file your income tax return so if you'' re a new canadian as well as you simply started functioning.
this year you can'' t place any kind of cash right into your rsp yet you just acquire that rrsp contribution space following.
year when you file your taxes you obtain tfsa room as quickly as you start staying in canada but the rsp.
is one year behind since the government doesn'' t recognize just how much cash you made till you file your.
tax obligations and also much like the tfsa unused payment space is not lost it obtains lugged forward so wear'' t. stress if you can'' t max out your rrsp annually remember it'' s your obligation to understand your. readily available space as well as stay below your limitation fortunately you wear'' t have to compute your rrsp area by hand.
the government does it for you after you submit your income tax return in the springtime you'' ll obtain a notification. of analysis and near the bottom it will tell you your available rsp area based upon your earnings but.
throughout the year it is your obligation to track all of your payments as well as remain below.
this number do not over add to your rsp the fines will be serious if you exceed your.
restriction you will be charged a charge of one percent each and every single month on this excess amount that'' s. 12 a year in costs that ' s huge and almost as negative as charge card financial obligation so please prevent this there is.
no financial investment that'' s worth a surefire loss of 12 so stay within your limitation practically the.
government offers you a buffer of 2 000 over your restriction prior to you obtain punished yet.
don'' t try to video game the system as well as make the most of this you won'' t have the ability to deduct this two thousand. dollars it'' s simply there to provide you some flexibility if you make a truthful mistake among the common.
blunders that obtain people in problem is over contributing due to pension plan modifications.
if your company uses you an rrsp or pension plan strategy matching program then your company'' s. contributions will certainly additionally take far from your offered room if i put in 5 thousand bucks. into my work'' s pension plan and also my company matches that 5 thousand bucks my offered room goes.
must avoid these company rsp programs typically talking company rrsp programs will certainly take cash.
out of each paycheck and also put it into a shared fund where you will have no control or versatility.
with your money and also in addition to that they will certainly bill you enormous monitoring costs generally around.
two or 3 percent that'' s big and what are you really paying for instead you can open your very own.
rsp account with a broker like questrade which is my personal favorite and also you will certainly have total.
control of what to do with your money you can even duplicate the exact same financial investment portfolio by.
getting etfs at a portion of the cost of mutual funds etfs will normally only charge you between.
0.1 percent and also 0.6 in monitoring fees that will save you a lots of money in the future again if.
your employer offers matching payments then take advantage of it and also max out that free money.
sure you'' ll be stuck paying high costs in a mutual fund however you are increasing your cash straight off the.
bat so it'' s well worth it but if your job doesn'' t supply any kind of matching after that skip it and open your.
own rrsp account one incentive your company rrsp strategy will certainly promote is the ability to minimize the.
tax obligations from each income rather than paying tax obligations adding to an rrsp after that waiting a whole.
year to receive that tax reimbursement why not minimize the tax obligations from each income this way you reach.
accept it give it to your employer or hr division that form is generally a guarantee you make with.
the federal government that you will add allow'' s state five thousand bucks to your rsp by completion of. the year currently every income you obtain throughout the year will certainly be a little bigger due to the fact that.
you'' ll be strained less you ' ll be taxed as if you already declared a 5 000 rrsp reduction you''
re. just early so now you'' ll receive the very same tax refund but instead of waiting till next year.
you get to enjoy the tax obligation reimbursement right now spread throughout the entire year just make certain.
you keep your promise and also add at the very least five thousand bucks into your rsp this year to be.
clear i simply chose 5 thousand dollars for this instance you can select any kind of number you want as long.
as it'' s within your offered room below'' s another error that can cause over contributing unlike.
the tvsa you do not obtain new rsp space on january 1st the rrsp calendar begins on march second of.
annually and this is due to the fact that of the 60-day guideline when it comes to rsps the first 60 days of the.
brand-new year are treated like the previous year so if you add to your rrsp before march 1st.
the very first 60 days you can claim that tax obligation reduction against your income for last year this permits you.
to prepare in advance as well as lower your forthcoming tax obligation costs before you submit your income tax return in the spring however.
if you have maxed out your rrsp do not add any type of more money up until march 2nd sure it'' s a brand-new. year in january however not when it concerns rsps january as well as february the very first 60 days are still.
dealt with like in 2015 so you'' re still maxed out practically speaking you won'' t know specifically just how.
much brand-new rsp area you'' ll gain up until you in fact submit your tax return but you can make a reasonable.
evaluation keep in mind take 18 of your gained revenue from the previous year which will be your brand-new.
rsp space and if you wish to add to your rrsp prior to the march 1st deadline i suggest.
utilizing the immediate deposit attribute with questrade i have an entire video tutorial showing you tip by.
tip exactly how to make instantaneous deposits so check that out this is just one of the several reasons that questrade.
is my favorite online broker in canada and also if you'' d like to start click my recommendation link. in package listed below and also you ' ll get 50 in compensation open market discounts for the first thirty day when you.
register that primarily indicates that your first 10 stock trades will be commission complimentary that conserves.
you 50 plus i'' ll get a small referral bonus offer as well as well as when it comes to your offered space.
only the cash you place right into an rrsp counts as a contribution any type of revenue made inside the rrsp.
will not take away your readily available space so also if your rrsp is maxed out if you generate income from.
funding gains returns or leaks this will not press you over your limit so put on'' t worry this is.
the exact very same with the tvsa as well as i talked concerning this factor in greater detail in my tvsa blunders.
video clip below'' s one more error to avoid for both the rsp and the tfsa do not hold dangerous or speculative.
possessions in your rsp these consist of penny stocks marijuana supplies ipos crypto etfs anything that'' s. exceptionally unpredictable and most likely to collapse and also burn if you bet as well as shed in your rsp not only will.
you shed money yet you will permanently lose that valuable payment space it'' s gone and you never
. get it back and unlike a non-registered account there is no advantage to marketing a stock muddle-headed.
in an rrsp you put on'' t reach declare a funding loss and also you put on'' t obtain to minimize your tax obligations you simply.
shed cash without advantage at all so in an rrsp hold quality developed companies that have a.
solid future do not bet in an rrsp and i would urge you to prioritize u.s returns supplies.
and also etfs in your rrsp given that only the rsp account will certainly allow you to forgo the 15 withholding tax obligation.
on u.s rewards again i discuss this point in much higher detail in my tvsa errors video clip.
Please check that out right here in this video i want to concentrate on the a lot more fascinating errors particular.
to the rrsp now let'' s discuss claiming the rrsp tax reduction this is very essential you do not.
need to declare the rsp tax deduction immediately simply because you place cash into your rsp this.
year does not imply that you have to declare the tax obligation reduction this year you can lug onward.
that tax obligation deduction to a future year where you'' ll be in a greater tax obligation brace and also therefore that.
reduction will conserve you a lot more money in tax obligations let'' s check out an instance let'' s say you reside in.
ontario and you make a tiny income of 45 000 that puts you in a low tax bracket with a low.
tax obligation price of 20 percent if you add 10 thousand bucks into your rsp and you declare that.
tax deduction you will conserve twenty percent of that so you'' ll receive 2 thousand dollars as.
a tax obligation reimbursement that'' s wonderful however we ' re still in the lowest tax obligation bracket so we ' re obtaining. the tiniest possible take advantage of this rrsp deduction remember i put on'' t have to declare this tax obligation.
reduction right away i could put the money right into my rrsp as well as allow it grow tax-free but i can choose.
to carry forward that reduction to following year if i anticipate a larger income back to my example.
if following year my wage raises to 65 000 currently i'' m in a larger tax bracket with a.
higher low tax price of 30 percent given that i continued that rrsp reduction now i.
can assert that exact same 10 000 deduction however i saved 30 of that so now i get 3 000 as a tax obligation refund i.
simply obtained an additional 1 000 in tax savings just for waiting one year to drive this point residence.
let'' s say i bring for the tax reduction for 5 years and now my wage has made a substantial jump.
to a hundred as well as fifteen thousand bucks currently i'' m in a high tax obligation brace with a minimal tax obligation price of.
forty three percent now if i claim that very same 10 thousand buck rsp reduction i save forty 3.
percent of that so i get 4 300 as a tax obligation refund that'' s greater than double the tax obligation financial savings if i had.
declared it in the reduced tax obligation brace some typical recommendations you'' ll listen to is wear ' t add to your. rsp when you ' re young delay until you have a high earnings to make payments but that'' s just half.
true you should certainly add to your rsp also if you remain in a reduced tax obligation brace the earlier.
you invest the more time your financial investments will certainly have to expand tax-free inside your rsp just put on'' t. claim those tax deductions right now lug those ahead to a future year to obtain real tax cost savings.
that'' s what i did i purchased my rsp while i was in college as well as making really little cash.
from sideline however i begun early and i let my financial investments expand tax-free for 3 years till i.
had a high-paying job and after that i made a decision to assert those rrsp deductions which conserved me a whole lot of.
money but you have to intend ahead just since your income will grow following year doesn'' t mean that you.
should wait it'' s only worth bring forward those tax obligation reductions if your higher income will push.
you to a higher tax bracket back to my example if i'' m making 65 000 a year in ontario and also next.
year my salary boosts to 70 thousand bucks i'' ll still remain in the very same tax obligation bracket with a.
minimal tax obligation rate of 30 percent so whether i claim the deduction this year or following year i''
ll. obtain the very same 3 000 in savings so there'' s no point in waiting if you'' re going to be in the exact same tax.
brace following year after that don'' t wait declare the rrsp reduction right away and also invest that tax reimbursement.
that will offer your financial investments a whole added year to expand tax-free make certain you prepare ahead.
as well as run those numbers and also keep in mind each province has different tax obligation braces in this instance i.
was just discussing ontario you'' ll notice that i stated to invest your tax obligation reimbursement do not.
waste your tax reimbursement on pointless spending the whole point of the rrsp is to minimize your tax obligations.
currently providing you more cash to invest with today and allow that money grow for many years and also years when.
you receive your tax reimbursement i would certainly encourage you to invest that cash back into your rrsp to gain.
one more refund following year or place that money in your tvsa or if you have kids place it in an resp to get.
the 20 of cost-free federal government grants put on'' t leave cost-free money on the table take advantage of these tax.
sheltered accounts and take a look at my resp explained videos to see just how the resp works and also how to obtain.
the totally free government give money for your kids when it concerns rrsp withdrawals there is a heap to.
speak about as a matter of fact i currently made a whole video on rrsp withdrawals so please check that out however this.
is necessary you must not take out from an rrsp until you remain in retirement technically you'' re not. secured you can always choose to withdraw from your rrsp early however you shouldn'' t do it for 2. primary factors first whenever you take out from your rrsp you will be completely tired on that quantity as if.
it was regular work revenue so if you'' re in a high tax bracket with a limited tax rate of 40.
percent you will be tired 40 of that withdrawal amount that'' s substantial the point of the rsp is to. withdraw that money when you'' re in retired life where you'' ll be in a much reduced tax obligation bracket as well as so.
you'' ll pay much much less in tax obligations the 2nd drawback is that when you withdraw from an rsp you don'' t. restore that payment area it'' s gone permanently this is different from a tpsa where you can.
take out money and also gain that area back next year however with the rrsp as quickly as you make.
a withdrawal that room is gone so now you'' ve missed out on out on a lifetime of tax sanctuary growth as well as.
that'' s a big opportunity cost i always urge you people to purchase the long-term but this.
way of thinking is much more essential with the rrsp always maintain this in mind the money you invest.
in an rrsp needs to be money that you will not touch for many years also for decades withdrawing early.
from an rsp must only be utilized as a last option i'' ve said this many times it is so crucial.
to develop an emergency situation cost savings fund that you can depend on if you require money you never ever wish to.
be compelled to sell your financial investments however if your financial savings simply aren'' t sufficient then take out from your.
non-registered account or perhaps your tvsa if you need to those accounts are far more versatile as well as.
you will restore that tvsa room next year however if you take out from the rsp you never obtain that space.
back so please avoid it so there you have it individuals those are several of the greatest errors to prevent.
in your rrsp this is the third video i'' ve made on the rrsp as well as there'' s still a lot more to speak.
around so stay tuned for even more rrsp videos where i'' ll discuss both exemptions that enable you.
to take out from your rrsp without paying tax obligations and that'' s the home buyers plan and also the long-lasting. learning plan i'' ll additionally go over approaches to lower your taxes throughout retired life using a rif.
spousal earnings splitting and other factors to consider like oas claw back rrsps are incredibly effective.
however they can be made complex so i'' ll be right here to aid damage it down many thanks for watching people as well as.
make certain to such as comment as well as subscribe if you located this video clip valuable every thumbs up and comment.
actually does assist me construct this channel on youtube and hit that bell icon to be notified of my brand-new.
videos and if you'' d like to follow me on instagram or facebook at canadian tee shirt click the link in.
the box listed below or click the web links on my homepage many thanks every person and also i'' ll see you guys on the following.
episode of the canadian in a t-shirt bye individuals.
Cars = #1 Wealth Killer
Jason 0 Comments Retire Wealthy
in today'' s video we ' re going to discuss the primary wealth awesome in america our cars hi if you ' re new to the channel my name is tay from economic turtle where we discover to expand our wide range slow as well as constant you may be believing hey what are you speaking about aren'' t there so several various other things that ought to come prior to a cars and truck settlement that is damaging our wide range exactly how regarding the climbing expense of wellness care or stagnating earnings and also what about the insane rising cost of living rate that is damaging our buying power of course all real and also i put on'' t disagree that most of these items impact our riches in detrimental methods however if you can hear me out for the rest of this video i want to help you comprehend why i think our automobiles are actually the top wealth killer here in the united states yet initial let'' s begin out with some history lessons so we have context concerning autos in america let'' s encounter it we as americans are obsessed with cars as well as nothing states american as our cars these days it'' s tough to see the distinction between cars and truck culture and also american culture as cars and trucks have come to be such a considerable part of our lives considering that they initially happened and a large reason for why they lingered for as long is that they'' re the epitome of condition this allura condition that keeps chauffeurs hooked days completely back to the ford design t the very first budget-friendly american car that transformed america as we recognize it over 100 years ago and also ever since vehicles have remained to represent itself as an expansion of ourselves as well as as a result our identification and our standing sign a means to show the world how effective we are when someone parks their lamborghini right following to our 10 year old honda civic don'' t a number of us think male what does this guy provide for a living just how is he so rich he is so amazing in my mid-20s i made one of the greatest acquisitions of my life an all new volvo s40 i had actually simply gotten my recent promo in the military as well as i was making respectable cash obviously i was still living income to paycheck i validated the purchase by claiming that i deserved it as well as i functioned hard for it and also while that could have held true the truth is that i can have gotten a more affordable car and made use of that additional money to pay down debt or buy my future yet i didn'' t because i desired that status symbol i desired the car that would certainly churn heads when i drove now a volvo wasn'' t truly linked with turning heads but at the time i certain really felt like i was someone and also that is truly the core trouble with autos they'' re frequently psychological acquisitions we purchase them with our heart not with our heads and when we do that we usually end up overpaying as well as making inadequate financial decisions much like i did all right now that you had an excellent laugh at my money mistakes allow'' s really check out some numbers and see exactly how automobiles are essentially eliminating our riches allow'' s try to comprehend the average cost of owning an automobile at the time of this video the typical price of a new auto in the united states is around 48 000 as well as considered that the majority of brand-new autos are purchased funded the ordinary regular monthly vehicle payment floats around 700 however when we consider the continuous prices like insurance policy gas or upkeep truth cost of ownership is in fact much greater and we aren'' t even factoring depreciation when buying a brand-new car a new car can lose up to 20 of its value the minute you drive it off the great deal as well as it doesn'' t stop there typically a car will lose about 11 percent of its worth annually for the initial 5 years so if you acquired that 48 thousand buck cars and truck in just 5 years it'' ll be worth less than half of what you spent for as well as after ten years you'' ll deserve much less than a 3rd so it'' s not a surprise that many individuals are upside down on their auto settlements the lower line is that car payments generally are a poor concept specifically big automobile payments like 700 a month there may be special scenarios where a car settlement might make good sense for instance you initially intend on getting a new car with cash money however you picked funding rather since they were providing an absolutely no percent interest however these scenarios are not typical the huge bulk of people aren'' t using auto payments to aid out their money flow scenario picture a typical person who began their initial work at the age of 25 and also settled into a 700 auto payment for their entire life this person would certainly trade his or her cars and truck over the years but would always have that auto repayment each time the car is paid off we would certainly head straight to a dealer to grab a new one and if we did this for thirty years we would have paid over 250 000 in automobile payments alone and also ultimately we would only have an older automobile worth almost nothing to show for it as well as even worse as i pointed out previously this figure doesn'' t consist of the money we paid for upkeep insurance and other connected expenses with owning a vehicle now envision that we did something radical and also chose to bypass or reduce this hefty brand-new car payment for our whole life we determined to purchase a smaller sized brand-new automobile or a trustworthy previously owned automobile or even more radical usage alternating methods of transportation and also leased autos just when we required one in these situations let'' s minimize our regular monthly cars and truck cost by half the national average vehicle payment as opposed to investing 700 a month we rather invest 350 monthly and also we spend the extra 350 in a great reduced cost index fund for following three decades just how a lot do you assume we'' ll have in our financial investments after thirty years at a typical 8 percent rate of return over half a million bucks the total contribution quantity is around 126 000 yet the intensifying included near extra four hundred thousand bucks for financial investments for half a million bucks i personally put on'' t mind driving a humble economical vehicle versus an auto that supposedly reveals my wealth to the rest of the world that actually doesn'' t appreciate me anyways automobile payments are not a lifestyle and if we believe that since we had one since we could remember it'' s time to alter that mindset it'' s simple at fault exterior aspects for our life and cash troubles but what is fascinating is that usually we blame every little thing else but our high automobile repayments for our lack of ability to obtain in advance we condemn our companies for not providing us the raising we are worthy of or our parents for not enlightening us enough we criticize wellness insurance premiums the cost of groceries the housing market as well as even the rate of gas yet exactly how usually do we focus our initiatives over auto repayments frequently not so several people myself included have actually ended up being socially conditioned to think that a big car settlement is a truth of life because having a nice cars and truck is a way of living it'' s an extension of that we are we wouldn'' t head out to the shopping mall using scruffy clothes so how can we be on the road with a review vehicle we inform ourselves that everyone has a cars and truck settlement which is regular and also alright and if we'' re mosting likely to have an auto settlement anyways we could too obtain the vehicle we desire right this type of reasoning is so extensive and also so ingrained into our culture that it'' s almost an epidemic the reality is that we don'' t demand to think this means as well as in reality it is very harmful to assume this method since it'' s harmful to our wide range okay currently that we recognize the damaging influence of having an automobile payment is to our riches what can we do let me show to you some useful pointers top pointer is a bit basic but it is to delay gratification or discovering postponed gratification if this is something we fight with and also i entirely understand with people who like getting brand-new cars and trucks if we'' re completely truthful with ourselves myself consisted of buying a brand-new auto is fun not just do you reach take pleasure in the sought after new auto odor but you reach display in front of your family and also good friends and also despite exactly how much the benefit costs it really feels so excellent to drive your brand-new cars and truck off the whole lot and also cruise ship down the road however that is a short-term reasoning as much of us myself consisted of may have experienced initial hand the brand-new auto smell the exhilaration you feel when you reach drive a new auto to function i'' m sorry to say however these feelings are temporary as well as they'' re short lived after a rather brief amount of time the new automobile enjoyment turns into ordinary uneventful truth soon your auto isn'' t'so new anymore it ' s just something that you drive to costco on a weekly basis if we wish to do something different as well as construct our riches at the same time we require to transform our brand-new automobile mindset let'' s learn to delay gratification if you presently have a vehicle and also have been thinking of obtaining a new one see if you can drag it out for a number of even more years the simple act of delayed gratification can suggest hundreds of thousands of dollars in the long run 2nd pointer is a little bit a lot more useful as well as that is to think about purchasing used as i pointed out earlier among the best unfavorable monetary impact of getting a brand-new cars and truck is its devaluation a brand-new cars and truck can actually lose as much as 20 of his value the moment you drive it off the car park after 5 years it'' ll deserve no greater than fifty percent of its initial value a made use of lorry decreases at a much slower rate than a brand-new car this is because when you'' re behind the will of the auto it will have already gone through most of its depreciation as well as it'' s more affordable thus your regular monthly repayment if you pick to fund will be much lower if you'' re bothered with the problem of a made use of automobile due to the fact that you never purchased one consider a licensed used automobile you'' ll still save cash by buying a used car yet gain added self-confidence the dependability of the lorry basically accredited previously owned or cpo are cars that fulfill makers establish requirements as well as carry some kind of guarantee versus problems similar to a new vehicle service warranty the 3rd idea is to never ever rent an auto renting a vehicle is tempting due to the fact that the monthly settlements are much reduced than acquiring a vehicle nonetheless it obtains rather costly over time when you lease you'' re basically paying for using the vehicle for the first 2 to 3 years of his life when the cars and truck decreases one of the most when your lease mores than you either have to rent another cars and truck or acquisition one starting the cycle throughout again getting a brand-new automobile might be costly initially however once you settled the lendings you at the very least own the car and won'' t have any kind of auto payments as long as you proceed to drive it with renting you wear'' t have this alternative you will certainly always have a cars and truck payment the fourth suggestion may appear a bit severe yet is to think about no car if you live in an area where there is a good mass transit and also you put on'' t have to commute far away for job it could be practical to ditch your car completely not only will you save money on vehicle settlements but you also reduce gas insurance policy and upkeep expense it may not be one of the most glamorous service however it is an useful one that can liberate a considerable amount of cash monthly automobiles are among the largest wide range awesomes out there if you actually wish to build true riches you require to be mindful of your cars and truck options and also prevent the temptation to spend too much there'' s absolutely nothing incorrect with possessing an auto however there is something wrong with allowing the automobile own you think thoroughly about your requirements and make clever economic choices that will certainly aid you expand your riches gradually thanks people for watching if you'' d like to learn more about a few other means to conserve money examine out a few of my video clips below up until next time all the most effective [Music]
F.I.R.E – 6 Uncomfortable Truths we discovered about Early Retirement & how to mitigate them
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
international hey what are the hideous sides to.
retiring very early um aren'' t you bored every day just existing around doing nothing don'' t. you guys bother with lacking cash hey guys invite back to an additional gorgeous.
day here in Paradise Bali a lot of you have been asking me many concerns like the.
above so today I'' m gon na run with 6 unpleasant realities concerning early retirement.
As my recommendations for mitigating them based on our own experiences reaching fire and.
being retired right here in Bali Indonesia for the previous 2 years so uneasy truth number.
one retired life is a trip not a location for the document lying around all the time not doing anything.
in retired life is a misconception it'' s constantly wonderful to have a couple of days of that occasionally however actually.
you do that for long stretches of time as well as you'' re possibly going to be hit really really difficult with.
feelings of monotony absence of self-worth as well as you'' re gon na be missing out on a sense of gratification retirement.
isn'' t a destination like Bali or Boracay it really is the beginning of a New Journey in your life it'' s. that stretch of time where you ultimately do those things you intended to do yet constantly couldn'' t. since you were so busy making cash to survive it can be anything taking a trip the globe.
Creating that publication or studying that say cross stitch side hustle if you never obtain past the.
myth you'' ll most likely end up obtaining bored and after that wind up returning to work and also losing out on this.
Outstanding Life Adventure so like every various other trip start planning what is this epic experience you.
wish to invest your retired life money and time on second if you got tired during your.
retirement stuff perhaps you'' re doing it wrong so for a great deal of individuals their retirement Jam.
is about taking a trip the world right that'' s a super common one and also it'' s amazing enjoyable you never ever
. really feel much more alive and also it'' s such a terrific obstacle due to the fact that actually you need a lot of various skills.
to take a trip correctly right you require Road smarts to browse the towns and also scams as well as various other concerns.
when driving you need to be able to prepare your plan publication the most effective travel offers know exactly how.
to haggle your costs and also things like riding a motorcycle and scuba diving and also at the.
begin it'' s always impressive it ' s so extraordinary yet on exhilaration and also sense of accomplishment starts to.
plateau and also then you'' re gon na strike that point of decreasing returns and it wasn'' t just. in travel either it was also my painting my services my surviving The Wanderer life thingy I.
find that when love to stay mainly undirected most Quests really often tend to lose their flavor.
with time another way of putting this is perhaps you feel on your own falling under torpidity or.
that worked really well for me one either I start drilling deep down into the details of.
what I'' m doing or 2 I make it right into a business take my papa baking is his terrific love in retirement.
He'' s not simply pleading anyhow for the enjoyable of it the last few years he'' s in quest of cooking.
a tastier sourdough bread any individual has actually ever before come throughout out of 365 days in a year he is possibly.
baked regarding I'' m thinking possibly 400 sourdough loaves two loaves each bake he fine-tunes the dishes.
the starter the method the active ingredients he does some reverse design of sourdough bread that'' s. readily marketed outside it'' s been possibly three years and he'' s still going strong so he established his.
own unique sourdough bread objective and also Target and also criteria instead of simply serving as well as yogurting.
for enjoyable I ended up being competent teachers in both and at some point began both a yoga business and.
a browse school as well as you know I discovered so a lot a lot more about both in the entire procedure whatever.
Search out there if you start really piercing down there'' s always a lot more Enhancement to be had.
much more individual development to pursue please claim you enjoy Ceramic don'' t simply do it aimlessly to pass time.
brighten up your abilities get in competitions come to be a specialist Potter do compensations as your.
retirement side rush or educate ceramic courses when you keep pushing on your own to those greater.
criteria because you'' re either really drilling down right into the craft of it or you'' re running it.
as an Enterprise you'' ll discover brand-new procedures of efficiency therein and you will be burnt out not to.
state if you'' re really like us on lean fire whatever site revenue you produce will certainly assist settle.
the cost of your interests and also leisure activities so you wear'' t need to tap on your long-term Investments.'isn ' t that an actually bargain so 2 years earlier at the age of 38 I retired with my husband here.
in Bali it'' s quite early by many standards and also it'' s been a completely fantastic journey we''
ve. learned a whole lot and also I really hope the understandings we are showing to you individuals work if you'' re on. your very own fire Journey or already neck deep in retired life smack that like switch show to us in.
the remarks listed below what your retired life looks like so far how you'' re maintaining active as well as whether you.
concur or disagree with the points we made below currently on the third awkward reality it'' s. hard that you must protect your time you most likely retired so you can invest your time doing nonetheless.
you please whenever you please many of us will have spent the large bulk of Our Lives.
so far earning a living which means usually somebody else is routing your time either your.
manager or your clients and we obtain actually used to that so then in retired life self-directing your.
time comes to be something new as well as type of international as well as if you look at retired folks in Singapore.
after working jobs that entire lives a lot of them finish on in retirement functioning as cost-free.
child care solutions for their grandchildren if that'' s their best desire as well as for some.
typical older folks it certainly is after that it'' s wonderful I ' m actually
happy for them but. for some it may not actually be that but they locate themselves doing it anyway sort of like by.
default because they'' re simply so used to permitting somebody else to guide their time for them there'' s. always going to be people around who will attempt to capitalize on your spare time asking you to.
run duties for them possibly or like for us below in Bali we get so lots of demands from both people.
we understand personally as well as complete strangers of the net asking us to do stuff like strategy their.
holidays reveal them around Bali Etc naturally we love hosting buddies as well as family members and also we.
appreciate helping individuals typically however smartly speaking our own exclusive lives would certainly simply disappear.
if we were to captivate all the demands we get you'' ll need to find out just how to say no to people and also. how to strike equilibrium retirement is as much about sharing your time with the individuals who matter.
to you as it is regarding having time for your very own personal development as well as advancement simply know.
uneasy fact number four it'' s most likely gon na be just you and your loved one from.
currently on out so upon retired life your social scene is going to alter considerably everybody else is at.
job or active with their very own things you'' re either gon na need to learn to appreciate your own firm.
a lot or if you'' re lucky adequate to have actually 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.
interaction is key as it'' s simply generally being a thoughtful and respectful human being through.
the pandemic and on the roadway this previous decade I'' ve seen so several people who seem really surprised.
by the person the other half really is when they begin retirement and start traveling with each other.
24 7 a day but building that Convenience to do stuff on your own and building that wonderful.
relationship with your partner can additionally possibly be the most rewarding component of your.
retired life journey as well as your personal development prior to I show to you the 5th uncomfortable.
reality just the quick word from our sponsor of today'' s video MooMoo Singapore the supply.
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voucher no inquiries asked I strongly think that in today'' s day and age to be economically capable.
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make the most of these deals now for even more details click on the web link in the summary listed below.
unpleasant fact number 5 your money strategies are never ever as sure-fire as you think all retirement.
whether it'' s the normal kind or fire truly all boils down to the monetary preparation behind it.
right and the most unpleasant fact of all might be that your retirement funds are never.
as fail-safe as you prepare for specifically if your strategies are meant to spend 30 40 also 50.
years in the situation of very early retirement expert forecasts and presumptions fail you made a.
mistake in your portfolio preparation because of all the buyers that we all bring Bear markets occur.
blacks on occasions grey Rhino occasions so numerous points regardless of the plan despite exactly how much stress.
testing you did before you studied it the unexpected typically occurs as well as the sooner you come.
to terms with this awkward fact the quicker you can move on to hatching against the risks.
You can forecast most senior citizens they'' re functioning their financial preparation and much less Help around.
the four percent drawdown rule right so the U.S stock exchange has had a sensational Run for the.
last 10 12 years or so now of program points are looking a little different for the foreseeable.
future so those who have actually been traditional and also that have actually abstained from tapping their long-lasting.
investments will have much more reproducing space now to come through this bearish market however long it may.
last pals who have actually been following our trip for some time currently recognize that a dominant portion of.
our retired life right here in Bali contains rental income from a number of property Investments.
as well as regrettably in the last two years considering that we started retired life Europe is a video game up in arms.
soaring Power rates have actually driven up the expense of living across the globe and also all over enormous.
rising cost of living is now a massive concern the good news is we have so far taken care of to settle whatever disturbances.
we'' ve knowledgeable but essentially yet an additional awkward truth in retirement is that managing.
your cash to make it last till completion takes up more time than you believe wear'' t just go to rest on.
it continuously aim to expand the eggs in your basket as well as be open to adjusting your cash strategies.
like rebalancing your portfolio or transforming just how you invest your retirement Toolbox as different.
possibilities provide themselves for time you might not require to function for cash any type of longer however doing.
stuff that fuels your personal growth as well as that generates some added side revenue as an incentive is.
never a Bad Point awkward reality number 6 no factor sweating the small stuff y'' all recognize I ' m. a big fan of basic frugal living and no pretenses whereas delighted dining in an expensive dining establishment.
as we are eating at the local Battle spaces here occasionally a lot more pleased actually however a lot of us.
can likewise quickly get brought away diving right into with the itsy bitsy details of economical living you.
understand investing two hours below seeking out offers and also promo codes that end up conserving you 10 bucks 3.
hrs there figuring out exactly how to optimize your air miles need to you secure that 3.5 dealt with.
down payment price now or wait till next week where possibly it may be 3.7 I suggest it can be enjoyable.
and afterwards it can additionally be a poor use of your time you can do it if you take pleasure in the obstacle.
simply know that as long as you obtain the large stuff right your retired life is most likely mosting likely to function.
out just great so wear'' t sweat the tiny things big things include stuff like keeping on top.
of your general General expenditures you recognize doing your tax obligations right keeping a balance after that.
Diversified profile so as long as you keep on top of every one of that I believe that'' s about 95 of.
the big image actually on the other hand what I'' m likewise stating is that if you blow up your retired life.
finances by for instance attempting to go huge or go home on crypto no quantity of voucher cutting is.
gon na save you from having to go back to a task so yeah that'' s my take on not sweating the tiny.
things we'' re all retire at some time of Our Lives whether early or late voluntarily or unwillingly.
all of it come down to choice and progressed preparation just what I'' ve directly observed is that if.
you removed all the noise and also diversion in life what do you think are the real money we.
genuinely traded the way I see it is four things it'' s money time Youth as well as health and wellness simply consider it.
everything we do throughout our entire lives is truly us trading among these for the other an.
early retired life is that a person abnormality where you are in a setting to spend all 4 currencies at the same time.
concurrently and that optimizes your experience of life a really clear illustration of this is.
traveling you can travel in your 60s and also 70s certain that'' s what lots of people will certainly finish up doing as well as it'' s. excellent you understand you see these people really delighting in seeing new things being very happy yet it'' s frequently.
in the kind of like great deals of cruise trips around the globe as well as that'' s cool down also yet they'' ll never. experience what it'' s like to attempt finding out to surf or sail and also obtaining all salty and also burned as well as.
muscle mass achy however gladly tired oh they'' ll never ever try anything more vigorous as well as adventurous.
like say backpacking your means with Europe you know crushing in brand-new hostels satisfying crazy individuals.
from Iceland or wherever and also doing silly things together we all have 2 lives the life that we.
currently live as well as the life we could possibly live so then which life would certainly you select inform me in.
the comments below and also put on'' t tell me you wouldn'' t retire early due to the fact that you simply wouldn'' t actually recognize. what to do that'' s simply a cop-out response because yes well you'' re too careless to do the research.
and also try new things and recognize on your own thanks for seeing as always speak.
once more next Saturday bye foreign.
Retirement Advice for Tom Brady – or anybody thinking of leaving the workforce!
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
if you'' re an nfl football fan last weekend was a. weekend break for the ages all the games were incredible the packers shed which is awesome and also.
the bills and also the chiefs all those lead changes in the last two minutes that was.
extraordinary and also if you'' re a tom brady follower you might have seen his last video game the rumor.
out there is that he may be hanging up his football footwear to invest even more time with his.
household so to aid tom gradient and also anybody else was thinking of retiring i have retirement.
recommendations for tom brady we'' re mosting likely to start with the inquiries i would ask and after that we'' ll go to a. principle i call securement which really encompass the three things you need to be believing regarding.
if you'' re mosting likely to retire before we obtain right into the details allow me tell you i am daryl rose as well as.
i'' m the voice behind obtain economic toughness currently and also i do these videos to assist you create safety and security.
simpleness many of all monetary stamina at any kind of age or phase of your journey via life fine.
so below are the inquiries that i want tom to be considering as he tries to find out.
what he'' s mosting likely to do the first inquiry is what are you mosting likely to do when you hang up.
your football shoes you obtained ta do something so i wan na make certain that tom either maybe he.
enters broadcasting or he'' s a going across guard or something yet he'' s obtained ta spend his time in some way.
when we retire we got ta recognize what we'' re gon na do i desire them to know just how much retirement is gon na.
expense does he spend 5 thousand bucks a month six thousand bucks a month six hundred thousand.
dollars a month we require to understand just how much it sets you back and after that we got ta find out exactly how he'' s gon na. pay because if tom retires he ' s not mosting likely to be making 25 million bucks or 30 or whatever he.
makes so he'' s mosting likely to need to have a concept of'exactly how he ' s mosting likely to cover perhaps gisele has to go back. to function i don'' t recognize however he ' s reached have a concept what he ' s going to pay what could go wrong.'I wear ' t want tom running out of'money so he ' s obtained to assume concerning that what if he has long.
term healthcare demands later in life since of all the blasts i indicate there'' s a great deal that. goes right into it inflation is a huge bargain right he'' s mosting likely to most likely to the supermarket he'' s going to be. truly amazed at how the costs have altered as well as lastly we wish to consider.
priorities due to the fact that when you retire it'' s an actual good time to assume about top priorities like for.
example i'' m in my our community residence today we sold our large residence practically a year ago as well as now we reside in.
this condominium it'' s fantastic i really feel fantastic because the we pay much less for taxes for maintenance for the.
home loan everything so our priorities change so tom'' s probably living in a quite huge house.
right now however he might wish to look possibly he'' ll search in this area and see is is there a modification is.
there a shift in exactly how i sight things so those are the concerns we wish to ask everyone needs to ask.
those concerns if they'' re retiring at some time in the near future currently i wish to aid.
tom with a principle i call securement or secure retirement this is my proprietary method.
to help a guy like tom have security simpleness many of all monetary stamina at any kind of age or stage of.
his journey with life so what we intend to do is struck on three different variables so securement.
or secure retired life lives right in the middle below in this red area it'' s a little it ' s a venn. representation as well as the reason i have a style such as this is because you got to do a little of each point.
to have that protected retirement tom'' s got ta create some revenue right we chatted before perhaps he requires.
6 thousand bucks a month to live i wear'' t know he needs to produce some earnings he desires to protect.
his nest deck he'' s possibly made several bucks and he wants to secure that savings and also.
also and also i wear'' t understand if this is really possible for an individual like tom but it might be possible for.
you watching this video today he wants to pay less sales tax obligation so right here'' s the example i make use of when i. explain this let'' s state you wish to run a marathon you can'' t simply pick and choose what to do or.
be great at to run the marathon as an example if you have wonderful nourishment and you educate hard.
Then you acquire new footwear the day of the race you'' re going to have sores and.
your day is mosting likely to be among tremendous pain it'' s reached be all 3 so the method.
i teach people for retirement in order to have safety and security simplicity a lot of a monetary.
strength is you'' ve obtained to be in below so tom you ' re most likely viewing you ' re most likely.
watching possibly sitting at a beach someplace you desire to produce income you intend to secure.
your savings and also you wish to pay less income pack as well as you want to do all three and also not one or the.
various other to the detriment of these other variables darrell do you believe individuals like our videos beats.
me how do we learn we can inquire how like this if you like our video clips give us a thumbs up.
listed below anything else indeed subscribe by doing this you'' ll see our material immediately inform the customers why.
we do this to aid them create safety simplicity above all financial toughness in the future.
got it to subscribe just click the switch listed below.
Managing Personal Finances: Government and Independent Sources for Financial Advice
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
when it concerns handling your personal.
finances there are a number of government-funded as well as independent organisations which offer a.
selection of resources and services to give you with financial recommendations as well as inevitably to aid.
you make the most out of your money whether you'' ve got lots of disposable revenue or you'' re facing.
financial difficulties let'' s take a glance at each of these in even more detail first up it'' s. residents guidance which is a network of independent Charities that offers complimentary private guidance.
and also details on a variety of monetary related issues such as benefits financial debt banking.
pensions as well as insurance next up it'' s independent economic consultants these are specialists that.
be experts in supplying financial recommendations to people they are called independent because.
they are not connected to any certain financial institution or item significance that they can.
deal suggestions on a variety of economic products and solutions from different companies such as.
investment retired life preparing tax preparation in insurance policy and defense as well as estate.
preparing they collaborate with customers to understand their economic objectives as well as offer suggestions.
on how to attain them but also for their proficiency they permit us to charge a fee for their solutions.
and they might additionally receive commission from the products that they'' ve advised an additional means.
of gaining information which can aid you with your individual financial resources is with rate.
contrast websites such as gocompare go contrast and also compare the marketplace compare the.
meerkat.com comparethemarkets.com simples these on the internet platforms allow users to contrast.
the costs for a wide variety of items and services such as insurance policy home loans debt.
cards broadband and energy the concept behind these web sites is to make it less complicated for you.
to locate the very best bargains on the marketplace which subsequently helps to make far better economic.
decisions and also helps to reinforce your personal finances but it'' s vital to be.
aware that some cost comparison websites may have Financial arrangements with several of the.
providers and might not give an entirely objective contrast allow'' s now proceed to the.
money recommendations service which is an additional source of complimentary and impartial suggestions on financial issues.
it'' s a government-funded organisation which aims to offer Monetary suggestions to everyone in the.
UK despite their conditions covering crucial topics such as budgeting saving credit score financial debt.
and pensions the service likewise offers devices and also sources to aid individuals handle their money.
and also make more enlightened monetary choices currently if you find yourself in debt you can transform.
to a debt counsellor for recommendations and also support financial obligation counsellors are individuals or organisations that.
assist individuals to manage their financial obligation for instance they can produce you a budget as well as a debt payment.
strategy negotiate with lenders and also enlighten clients on their legal rights when it pertains to handling.
financial institutions as well as collection agencies to help take care of financial debt repayments even more it'' s additionally feasible to.
obtain an individual voluntary Arrangement which provides individuals with independent recommendations.
about their financial debt with no predisposition from a certified insolvency practitioner this also suggests that.
you'' d become part of an official and legally binding arrangement with any lenders to pay back all or.
component of what you owe over a set amount of time.
Why Stealth Wealth Is The Best Way To Build Wealth
Jason 0 Comments Retire Wealthy
Commonly, normal individuals are happy and are
clear concerning their revenue and wage. It is even regular to speak regarding just how much is
your cost savings. Yet it is various for the rich. Have you ever before noticed that some well-off individuals
One of the goals in exercising stealth wide range is to live typically to conserve some of your wide range. This additionally means that you do not get to save. Riches?
Why would certainly other wealthy individuals like to keep their riches hidden as well as not desire other individuals to recognize that they are exceptionally rich? 1. To Avoid Assumptions Once people get a hunch that you are not like them or have even more money than them, they always get this suggestion of making you an atm machine or a bank. They expect you to aid them each time due to the fact that they are much less lucky than you. Various other individuals anticipate that you want to zero your checking account for them.
It ' s not because you ' re self-centered that you chose to practice stealth wide range.
Most affluent individuals who wear ' t desire their riches concealed often get this unreasonable treatment.
Be careful that there are more elements than these. Stealth Wide range? You are not always able to.
There are several tiny indicators that might allow you know whether or not a person has severe riches.
You could be able to determine whether or not a person has hidden their riches by observing the things that they can not do or have. For example, if they do not ride stunning cars and reside in a typical location in a typical-sized residence, you can presume that they are rich. On the other hand, this doesn ' t truly mean anything. People who do not want other individuals to identify exactly how much cash they have will do lots of points, such as staying clear of driving costly automobiles or appearing to have an extreme amount
of intelligence. Individuals that take part in the exercising stealth wide range take great pains to appear as though they are no various from anybody else.You Have to Keep Your Wide Range Hidden Those who have never been affluent can have a challenging time comprehending the factors behind why all these rich pick to conceal their cash. After all, doesn ' t a large component of the enjoyment that comes with cash contains revealing it off? Millionaires
are folks similar to you and me; someone can be your next-door neighbors or a lecturer that simply surrendered from the class. Preserving the place of their hidden riches is often the only way to guarantee its protection. When they discover their lot of money, good friends as well as family may approach them for monetary help. Even though billionaires may well have adequate cash in retirement in convenience, it ' s possible that they may'not have adequate revenue to support every one of their member of the family and also buddies staying in comfort too. There ' s always a remedy to your riches.
Allow us understand in the comment section. And that ' s a wrap!.
Planning Retirement the RIGHT Way (with Veronica McCain)
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
so you'll pick me up tonight
at 7 45. yo well no I got a few things to take care of first but
why don't we make a quarter to eight I'm 45. live from Joe's mom's basement it's
the stacking Benjamin show [Music] I'm Joe's mom's neighbor Doug and good news
today is all about getting your way which is my favorite here to help us work out our goals
and find happiness we welcome retirement coach Veronica McCain for our Tick Tock minute we'll
discuss tips on getting your vocab right to succeed in the corporate world in our headlines
why is it that instead of money at the end of the month the month seems to go too many days for
our wallet we'll share an explanation from one popular publication plus we'll throw out the Haven
Lifeline to Lucky stacking Benjamin's listener Jim who wants to know what percentage to put into his
Roth IRA and then I'll share some heartbreaking trivia and now two guys who like to color way
Outside the Lines the Philistines it's Joe and oh [Music] and a happy Monday to you stackers nice open
duck you know given your history I think that was fantastic we got a great show today fantastic
show Veronica McCain is here I can't let that go what do you mean given my history I am Flawless
day after day show after show let what go I don't know what we're talking about Veronica giving
my history great open given my history Veronica McCain is here today she is a retirement coach
and uh oh gee we don't get enough time to talk about just retirement so I'm I'm super happy we
get to do that sweet I'm gonna retire after this Marathon recording episodes podcast for the
last freaking week and a half so you can go on vacation so like yeah by the time people hear
this I've had a wonderful vacation in Spain which meant that uh that yeah we've been talking to
each other a fair amount lately however we got a fantastic show today not only Veronica became
we got a fantastic Tick Tock minute super happy headline today comes to us from the Wall Street
Journal the oh gee sorry the Wall Street Journal The Wall Street Journal are they like the Ohio
state of newspapers forgot to put the emphasis in the right place and they get angry those Buckeyes
no it's the Ohio State I thought it was just oh no no it's the this is from the personal finance
section it's written by our friend Veronica dagger a Veronica writes why it's now easier to
underestimate your expenses and overspend let's dive in Veronica writes many people have a gap
between what they think they spend and what they actually spend this gaps wide recently is the
financial and psychological effects of higher prices further strain people's budgets Elevate
inflation is rippled through Americans wallets for more than a year now some have cut back While
others have increased their spending to keep up credit card balances were staying relatively flat
for a while but have jumped higher recently oh gee you and I let's take it from here I think
that this is a year where it's crucial to have your finger on the pulse of what your expenses are
you know you hear people joke about eggs you hear people joke about the grocery store of course for
a while there you saw the gas pump that seems to have leveled off at least where you and I live but
I think if you don't have your finger on the pulse you're just gonna have less money at the end of
every month well the availability of credit cards and accumulating that Consumer Debt really makes
it easy to continue to live the life that you want to live even if the cost of living has increased
a little bit because you don't feel the pain of that right away you know it's like that kind of
slow death by a thousand paper cuts type of thing it's like you have a little bit of a balance that
carries over then you have a little bit more of a balance that carries over and a little bit more of
a balance that carries over and so that's a really good really good signal I think is if you if you
go month to month and you're not paying off your Visa bill every single month or if you had been
and now you're not yeah that's a good trigger to go like whoa what changed here that'll snowball
pretty quickly listen to this statistic just to tell you how many people are not paying off their
credit cards Veronica writes in the fourth quarter of 2022 the average household's credit card
balance was nine thousand nine hundred ninety dollars up nine percent from a year earlier nine
percent higher it's a huge big number according to wallet Hub customer Finance website meanwhile
the average credit card interest rate of course rose with spread right yeah uh to record high of
about 20 percent last week according to bank rate those are some there's some big downsides for
not tracking your expenses yeah thinking about the math on that real quick it's like okay ten
thousand dollars at twenty percent you're spending 150 100 you know 200 a month of Interest that's
not going to pay that off if you think okay well I make 80 grand after taxes bringing home you
know 60 after taxes and health insurance and 401ks and all that sort of stuff that's a solid
chunk of your annual budget that's just going to interest payments that doesn't really accomplish
anything for you so if you're one of those people that that balance is increased on I think it's
really important to figure out how to tighten I think one way if you have an accountability
partner a spouse a friend that you're working with I really think this can be way easier than people
think that it is Cheryl and I just have a weekly meeting we meet for 20 minutes it's over wine or
over pancakes depending on what time of day it is it's not complicated we just look through it OG
and I think it can be that simple it doesn't have to be you know you're using what you know I love
the tiller money app I think it's fantastic how it takes a spreadsheet and downloads everything every
day and you've got whatever numbers you want you can plug those into your spreadsheet and get it so
you can slice and dice however you want I like the cube app as well we of course have lots of fans
who use YNAB as a great budgeting tool but it's not really it doesn't even have to be that hard
it just has to be having just a finger on on the pulse like where where's our money actually going
you know it might have been you who mentioned it years ago oh gee it could have been Paula pant but
but a lot of people feel handcuffed when they feel like the advice is look at your budget every
month and decide all the details that you're spending on and I think that's one of the things
that intimidates people or just is a huge Downer against budgets I don't think you have to do it
forever and ever I honestly think you set up a budget we use whatever template you want to use
make your own or use some of the ones that Joe mentioned and then you check in on it for let's
say the first six months or eight months however long it takes you to establish habits for just the
way you live just the normal everyday stuff and then once you've sort of curtailed yourself from
essentially taking out a loan to buy that pair of pants or that whatever that thing is you think you
need uh I don't think you need to check in on that budget that often I think it's I mean honestly
I'm checking in on mine every maybe six months to a year I think that I think the big Point here
Doug with inflation having gone up as quick as it did the point is to have these early warning trip
wires that if you're not going to check it that's fine but you got to have a tripwire that alerts
you then that stuff is real and it's different than it was three months ago because to OG's point
if you don't catch it early this gets Beyond you I mean but Wells Fargo's PR team finally getting
getting ahead of the story here and got themselves in this piece listen to this I like this money
grows much faster than most people expect because interest is not interest says Michael learsh head
of Wells Fargo and companies advice and planning center it's a great quote a similar concept
though applies to inflation prices rise and if inflation remains high prices continue to grow on
top of already inflated prices leaving people off guard quote people get constantly surprised that
their money isn't going as far as they thought it would and in fact the cost of eating out and going
for drinks continues to take Dina lion aback even though the 36 year old married mother of one's
dining out and ordering in far less than she did a year ago some prices still give her sticker
shot she says the difference between cooking at home about ten dollars for nice pasta and quick
sauce from canned tomatoes versus Italian takeout for now 50 bucks is astronomical said Miss line
who lives in Brooklyn I think those trip wires are are what you if you're not going to set it up
Doug well let me ask you this I mean given your history with money how exactly do you set up your
own tripwires so we focused all of our spending on One credit card I have a rough idea every
month of what that that number should look like at the end of the month and if it's significantly
higher I kind of raise an eyebrow and then I start scrolling through transactions and realize okay
those are all legit time to cut it back that's my trip but you know then where to cut well then
I start to it's usually uh the same thing for probably 90 percent of Americans Amazon but uh
Amazon could be anything though I know that's such a brilliant way for them to disguise what you're
buying that it just says Amazon yeah because you're like there's no way I spent forty one
thousand dollars on Amazon last year yeah you did like well what did I buy wouldn't you like to know
right I bought Fruit Loops and a backhoe exactly but yeah then I just dig in a little bit if if
the number is significantly higher usually when that has happened it's because of a couple of
big purchases and I know right where it was and um I know that that big purchase isn't going
to happen again the next month it's you that for me that's usually what it is it's not the
trickle effect of Amazon it's usually some big some big Bill I had but uh yeah that's that's my
tripwire yeah I just know that given your history that we really need to make sure that um people
hear the story you are harshing on me today what is happening what am I doing I don't give up
your history and what then you you yeah yeah harsh on my open what is going on I don't I'm just
saying that given your history there we go again I think we need we need to make sure that people
hear the story like it's a it's a great tale hey uh speaking of great Tales time for a tick
tock minute this is the part of the show where we either have some Brilliance from the people at
Tick Tock or we have hashtag brilliance from those very same people uh Doug which one do you think
we got today this one's legit it's solid yeah well more solid than my backdrop which is just about
fell over I love it how people are about to see they're about to see all the canned goods here
in the basement when your professional backdrop goes bye-bye I think you're correct doug because
oh gee today what we're going to talk about is how to succeed in corporate life how to how to
figure out the right things to say let's listen one of the most important skills you'll need
to learn if you want to be successful in the corporate world is how to speak like an absolute
[ __ ] week and a great way to do this is just to totally ignore the basic principles of
English grammar so first take a random noun and then change it into a verb so a word like
idea becomes ideate then take that new verb and turn it back into a noun so id8 becomes ideation
then take that now and change it back into a verb so ideation becomes ideation Inc finally take the
new verb and change it into a meaningless seven word cluster an all hands Blue Sky ideationing
session then sit back and wait to be promoted right that immediately it's pretty
funny after your blue sky ideation session you're you're good that's pretty
funny brilliant Joe tell them some of the we've got some of that same kind of
corporate phraseology here that that just develops organically just happens we have
we've come up with our own lexicon here uh OG we need to talk to you over by the can
peaches we say that you're getting canned first time Doug got canned he thought it was a big
deal oh God I was remember that yeah I was I I had Joy I mean uh tears in my eyes and when it's nice
outside so you know we want to leave the basement we meet up by the clothesline which we call Doug
getting hung out to dry there it is we didn't need the bump this is serious work OG we're all trying
to get promoted here hey coming up is a woman that I don't think we need to promote a lot because
when it comes to retirement planning people take it way too cavalierly oh gee you know this
better than most people spend more time planning their family vacations than they do planning their
retirement which shows why so many people are not successful at retirement planning well Veronica
McCain worked a full career and then realized that as a second career which we may talk about as well
she was going to become a certified professional retirement coach and a charter retirement
planning counselor after 31 years of Public Service work decided you know what time to do that
other thing that I've really really wanted to do so she founded Savvy retirement coach with the
mission to provide holistic retirement planning Concepts focused on self health and wealth we're
going to talk to Veronica here in a second about doing a better job planning retirement but Doug to
get there I think you've got some history well I think of it as trivia you call it history
tomato well given your history of doing the trivia I think we should just have the trivia now
there's some massive punchline coming I can tell I don't know what it is but okay fine here's
the trivia Joe hey there's stackers on Joe's mom's neighbor Duggan did you know that on this
day in 1956 Heartbreak Hotel by Elvis Presley became a number one hit the Smash Hit was written
by the Queen Mother of Nashville Mae Boren Axton and Tommy Durden Axton played a recording of
Heartbreak Hotel for Elvis at a disc jockey convention in Nashville and the rest is history
so since we're on the topic of hotels I got some hopefully not heartbreaking Hotel trivia for
you my question is if you're evaluating hotels as an investor what is the difference between
these statistics average daily rate ADR versus average published rate or APR I'll be back right
after I asked Joe's mom to celebrate Elvis by making me a peanut butter and banana sandwich
while I tee up Heartbreak Hotel on my Walkman Burning Love Joe's mom's neighbor Doug and we are
commemorating the anniversary of Elvis Presley's Heartbreak Hotel becoming a number one hit on
this day in 1956 with some Hotel related trivia so my question was if you're evaluating hotels as
an investor what is the difference between these statistics average daily rate versus average
published rate in maybe our most thrilling trivia question yet try to stay awake non-hotel
investors the average published rate is believe it or not this is going to be amazing are you
ready I'm just settle down because I know the excitement is building it's the amount a hotel
asks for rooms well the average daily rate are you ready for this I know you've been waiting
by your device all day just trying to figure out what this definition is that is the amount
they're actually getting paid for the rooms if you're a hotel investor this is the opposite
of boring because if those numbers are close together it means the hotel is in demand and
if they're far apart you know maybe not so much maybe I should suggest our writing team retires
So speaking of retirement Let's help you get there permanently it's time to learn how to create
your retirement your way with Veronica McCain and I'm super happy she's here at the card table
with us Veronica McCain joins us how are you that you're here because we're about to talk if
this goes according to plan we're about to talk about all the things that you and I think people
should talk about during retirement but often kind of gloss over because they're you know just don't
get me wrong we're gonna talk about the money too but it's about more than money but as a way to
get there Veronica I've always believed that if you want advice it's helpful to get it from
somebody who's kind of walked that path right when I was a financial planner I had been one
in a long time but when I was the fact that I worked with 200 families and I'd seen retirement
over and over and over again should give people a little bit of comfort that yes you want to do this
once I've done it a bajillion times but but I had not at that point ever retired you have actually
retired tell me about that do you remember the countdown to your retirement oh yeah definitely
I mean I remember when I was working you did you know you do the usual countdown on your calendar
kind of exiting out the days until it actually hits and then that when that day comes I think
you get a overwhelming emotions because then I realized you know I'm leaving my work and my work
was not just work for me I actually had you know work family what did you do by the way I worked
for the federal government so I was a associate director over several various departments within
an agency a very small agency about 300 people but um because you're a small agency you kind of
have to sometimes do a lot so oversaw a lot of different departments yeah so so you have this
flood of emotions where the emotions about loss were they about excitement I don't know is it now
all the above is it purpose yeah I kind of had an idea sort of what I wanted to do so I kind of knew
what path I was going to take once every time I know it's going to go into some type of coaching
field didn't know exactly what way I was going to go with it at first I thought maybe more in the
Executive coaching area but then as I thought about that more it kind of gave me flashbacks for
work so then I decided to get into more of the the retirement because people were asking me so
many questions about you know what do you do and what you retire how do you feel your days and that
kind of thing so um you know as I was approaching looking into the coaching area I did look at
retirement coaching and I said oh this will be an interesting field to pursue because I like to
motivate people to have people get excited about their goals and what they want to do in life and
I like the kind of the financial side as well so um you know that's why I decided to kind of lean
more toward the retirement coaching but getting back to when that final day came yeah I think
it was when I had the actual retirement you know sometimes that work to give you a retirement uh
party and you see everybody and they're like uh say something say something and then when I got up
to say something all of a sudden I started feeling like I was gonna cry yeah I was looking out at
everybody and I was like wow I'm you know this is this is really the end um even though I had
something you know like I said to look forward to going through I didn't expect that emotion to
come over me like that but it did and I think a lot of people experienced that when the final
day comes of their retirement there is like a I don't know I mean it's just morbid but there is
like a death I mean you're it is it is your last cake right right you've been to see other people's
cake but all of a sudden you realize this is your last slice yeah it is that that's exactly what
it is it's kind of you know that you're gonna try to keep in contact with the people that
you work with and try to have some kind of relationship but it does change it really does
because you just you know everything usually that you talk about with people at work is work related
stuff and over time when you retire that kind of goes by the wayside with you so do you feel like
we're too Cavalier about that about that process about the uh you know the fact that we're going
to have these emotions we just think oh I'll deal with it when I get there yeah I think a lot of
people are just so caught up and I'm going to be retired I'm going to be tired I can do whatever I
want it's so exciting or whatever so yeah I think you don't really feel like that you're going to
have those type of emotions I think you just feel like you're going to go to this next chapter
in your life and it's going to be oh this this burst of excitement and it is I'm not saying that
you're not going to have it but I do think there's also a period of of where you kind of adjust uh
to you know what you've left behind in your job and your identity and all that with that and
then going forward pursuing what what you had to look forward to in retirement so it's kind
of a mixed bag those first couple of years you tell your own story but you also tell stories
of a few other people in the workbook one is a woman named Susan Susan seems a little lost
can you tell our stackers about Susan Susan is the one who the days and the walls were kind of
closing in yes yeah yeah she was the one person in the book that I talk about and the people
that I talk about the book are actual people that I coach I just use different names and
scenarios names change to protect the guilty yeah she was kind of diverse and this is a this
is a lot like when you're working you're kind of looking forward to those days that you have off
where you can kind of do some things that you want to do but then when you retire and it's every
day it gets a little daunting if you really don't have an idea of what you're going to be doing to
for your days your day-to-day life I think is the hardest thing that most people struggle with when
they retire they have some huge aspirations maybe of traveling or doing that but once they're
sitting in their house house on a day-to-day basis and in the you know the walls of you know
has kind of quiet and not a lot going on you don't have that routine of going to work anymore
it's kind of like what do I do on a day-to-day kind of thing and that's kind of challenging but
what Veronica separates your workbook from a lot of the retirement discussions I've seen is that
you take this day to day and challenge all of us to think really bigger about our life like I got
this feeling even in the beginning Pages as you're telling the story that well let me just quote
you you wrote a big void needs to be filled in retirement but it should not be filled just with
things to keep you busy like this is not just a March to the Grave this is a whole different
piece of your life and it shouldn't just be about rearranging the salt and pepper shaker every
day or you know figuring out that the dog needs to go for a walk like you challenge us to think
a lot bigger about this period exactly it is an exciting time for you to think bigger about your
life because it's probably the first time in your life that you're actually able to do what you want
to do on your own schedule and hopefully have the finances to do that so I think it's more than just
trying to fill your days with just the stuff to do and I think a lot of times when you first retire
if you don't really have an idea of what path you're going to go down once you retire that's
what you start doing you start trying to just okay let me do this do this and do that and you're
not feeling you're still not feeling fulfilled so I'm hoping in the workbook I give you exercises
to help you because people struggle with like what does this mean purpose meaning fulfillment
or whatever yeah those are I think sometimes big words that we use but I hopefully going through
some of the exercises in the book you will be able to figure that out by going through the exercises
and then trying to say okay well what do I really want to look for as far as my next chapter in my
life of what I want to pursue and what I want to do more than just these little small things that
are keeping you busy I get uh coaching from a group called strategic coach long time stackers
have heard me talk about them before but we have we have a workbook similar to yours with these big
questions about leadership and about coaching but you do the same thing here with retirement and
this is not guys this is not a long workbook but if you're doing this right it may take you months
to fill this stuff out because I could see myself Veronica peeling off maybe two pages and really
because the thought that goes into each page of this is really the important part well let me give
everybody some of the tips from the book that you have early on because you have workbook pieces
and then you have some tips here's some tips early on for when you first get to retirement to
kind of send you on this path while you're filling out the workbook schedule activities you enjoyed
during when you took time off from work journal and reflect on your expectations of yourself as
a retired person I love that word Expectations by the way read books and articles listen to podcasts
and a variety of topics to discover what most interests you now and volunteer for different
organizations to discover how you most enjoy helping people and helping help being out it feels
to me Veronica like you're challenging people also to don't be afraid to explore like go go try
stuff expecting that it might not be a fit exactly that's exactly right Joe I want people to not be
kind of Trapped into thinking they have to have everything planned out to just go out and just do
things that they find intriguing or they interest them and then from there they can determine what
they want to continue to pursue what they don't want to continue to pursue but don't don't limit
yourself on what you what you think you should be doing or how you should be doing it this is a time
for you to be adventurous and explore at different Avenues and things that interest you and a lot of
times that's kind of a hard thing to do for people because they've lived this kind of structured life
up to this point with work and all that and to try to say oh just go out here and do whatever and try
to figure it out it can be a little intimidating like whatever what yeah yeah so I'm hoping that
the exercise in the book gives you clue you know kind of cute used to okay these are some things
volunteering doing some other things that you know she thought about what maybe when you were
younger and didn't pursue kind of go back to those times of those thoughts and and try to figure out
if there's um things that you want to pursue now so yeah it's it it's funny because I I really
went through this crisis where I felt like not just there's a lot of stuff not interest me but
but I'm like okay I want to get involved in my community I want to get involved in organization
but but which ones I don't this could sound very horrible Veronica but I just didn't I just didn't
care about any of them and then I realized that it wasn't about that I need to just go get involved
and when I found out and ultimately at first it was the Arthritis Foundation I got involved
with I found out about juvenile arthritis I found out about all of these things happening in
the arthritis Community I got involved in walking trails around town and I realized how walking
trails uh not only your Healthy Living but beautify a city but they're also very inexpensive
ways for cities to raise property values like I learned it by exploring exactly what you're saying
to do in the book exactly that sounds so great Joe because that's exactly what I'm hoping people
would do once they start retiring just like you said you did you just started going out and doing
things and as you started doing those things you learned so much and it got your interest even more
into whatever activities you were pursuing the one thing that people have to realize when they retire
you have to be just to be intentional you have to go out and do it it's not going to come to you and
a lot of times I think you know when I'm working uh coaching with clients they're like well I don't
know I don't know I'm like well you got to go out and try you can't it's not going to come to you
you've got to go out there and pursue it and once you do and when you know you will see oh okay this
doesn't just me or this doesn't interest me but you've got to go out there and do it can we talk
about that what you just said about you kind of kicking people in the butt and and kicking them
out the door to go you know like my mom used to say don't come back inside until that light turns
on you know we we back when kids went outside side maybe I'm dating myself there but you end
almost every chapter of this workbook with who are going to be your accountability Partners it
seems to me like accountability partners are a big piece of this tell me about how you how do you
find these people Veronica maybe just before you retire yeah and sometimes say you know who they
can be they can be trusted friends and and people that you know I think sometimes there are people
that are asking you questions about yourself and are intrigued about you as an individual but you
do have to find sometimes an accountability person because in retirement there's nothing pushing
you to do anything and if you don't sometimes have somebody that you can hold accountable and
if you can't find someone within your your network I would advise you to look for a coach because
that's because what they can be as well pursue look um for a retirement coach or a life coach
or or someone in that field because they can be your accountability partner but if you're finding
that you're struggling trying to get stuff done and you're not really getting out there or you're
bored and you're restless and you want to not get some pickup and you're like you definitely need
to look into getting somebody to be accountable and help you because I even have coaches that I
work with and I'm a coach yeah yeah me so it's just something that just like I said it helps
you keep you accountable to someone to keep you motivated to do things I think that kind of
like you Veronica I just get this feeling that uh with my coach if I say it out loud to Mary Lou
it means I gotta go do it like that if somebody tells you or if you tell your coach then you
then you have to go do it I want to stick with this theme of uh friends and family a little bit
because those might be some of the people you're bouncing stuff off of but you also say if you're
having trouble finding your sense of purpose that friends and family might be a good Outlet yeah
and that's what I found for me that's why I said I want you know I knew I wanted to go into coaching
I wasn't really sure which way I wanted to go and the reason why I decided to be a retirement coach
is because friends and stuff are saying you're good at coaching and talking about this retirement
stuff or whatever and I'm not like you should do something with that and that's why I pursue
becoming a retirement coach but I think oftentimes friends and family see things within you that you
don't even see yourself they recognize talents and things that you have that you're like oh okay
you're right I do enjoy that you kind of brush it off and maybe not pay attention to where they
might be and I think when you're listening to your friends and family you have a tendency because you
trust them to listen to their guidance a little bit maybe more than somebody else that doesn't
really know you so I say I always lean into your friends and families to help you if you're
trying to figure out maybe you know some things you might want to do they might say well you're
good at organizing or you're good at accounting or you're good at this or whatever and they might
give you some cues to help you figure out where that next chapter is going to be in your life in
retirement so definitely look for them for that I like the fact that you go through a lot of
this first about about purpose and value and meaning before you get to the money in chapter
two because your chapter two then really is structured around okay now that you know that we
can focus on spending money where it's important and saving money where it's not and hopefully I
have an idea there you start off with some good tips you talk about traveling a lot of people
in retirement want to travel uh you say to be a conscientious traveler what is what does that
mean yeah everybody always says when they retire they want to travel and then all of a sudden
they just start going places and not really thinking of where they really want to go and why
they want to go there I kind of had to regroup because when I first retired I kind of I think
everybody does that you go through that I just want to get out and go go go go go go and you're
just going everywhere but you're spending money going everywhere and so you want to kind of
maybe reel that back in it's okay to have that little brief period of doing that but you want to
reel that back in and really think about you know where is it where do I really want to go why do
I want to go there what do I want to experience once I get there make sure you're spending your
travel dollars on things that are value to you and make yourself more conscious of the type
of traveling you're doing I know I did a lot of girlfriend getaway travels you know spy and
all that and that's great but I really want it I want to explore the world that's what I really
want I want bigger trips and so you know you need to just be conscious of what your goal is as far
as you're traveling and where you what you want to see and make sure you're you know you're putting
your money into that type of travel versus just doing things yeah yeah what I really like that
you shine a light on is now that you're retired you can really lean into off season and one thing
that's not in your workbook that I love about off season that Cheryl and I have found because she
is a somewhat flexible job and I could travel whenever man off season you get more of the local
experience because the places aren't full of a bunch of tourists people are more likely to be
able to linger and talk to you like off season is great but to your point you save you save a
bunch of money there too exactly and I travel now that's all I do is try to travel off season
because just like you say as far as you want to make sure with your dollars that you're spending
them in a conscientious way as far as when you're traveling too going off season I feel like those
retirees the best time for you to travel because you really get a feel for everything without
the crowds and like you said the pricing is better you're able to enjoy it in a different
way what are some other ways that new retirees and people that are stackers that maybe are are
getting close to retirement can think about areas where they might be able to save money besides
on discount or off season travel at first I would just look in your budget overall of what you you
know you have developed as far as your I think everybody should be tracking their costs before
they retire and coming up with a overall budget um what they think their retirement is going
to be but some of the things you can look at is cars you know the insurance and things of that
nature look at that to see if there's ways you you can save on that once you retire there's
also lots of discounts and stuff like we were talking about off Seasons but also if you kind of
pursue looking you know if you want to go to Parks or whatever whatever your um interest might be
looking for ways you can get discounts on things of that nature and just be aware of any ways you
can save money with traveling it's just a lot of different ways out there too for other things as
well two big ones I really like that you had uh if you've got two vehicles you might be able to go
to one you know think about what you think about Transportation evaluate your life insurance do
you need it anymore are you financially solvent enough where maybe you could get rid of that and
then a medical one which I really liked was hey this medical thing is going to get expensive
stay healthy which also gets you out of the house I feel like Veronica again you're kicking
people's butt out of the house I definitely with the medical and the exercising and now that you've
got all this time you've done definitely can get a nice physical routine into your everyday life
just simple walking I know I take morning walks every morning and not just for exercise but for
meditation purposes for me as well but yeah we all know the medical cost is a big expense when
you retire and we also know that you get more you know seditary in your way you're not as active as
you were where you were working so I do recommend that you do have a physical fitness routine for
yourself when you retire to keep yourself healthy so you can reduce those medical costs because
a lot of the Medical classes stuff you can prevent yeah and things that you could be doing to
prevent you get but you got to start early on your retirement and start doing things to keep yourself
healthy when we go to the doctors at a certain age you're all getting those oh you're close you
know borderline there's water flush that and stuff it's time for you to really you know we're at that
point you can do things within your health to keep yourself more healthy so yeah yeah definitely I
look at a hamburger now and my cholesterol goes up I just look at it I don't know how that medically
happens but it's crazy that is we all we all know that feeling with people that own their house
you have a section of your workbook to go through Renovations on your house and thinking about
your housing situation this is the number one area in our budget our house what are some of
those key considerations about our housing we should be thinking about yeah a lot of people
like especially if they want to stay in their houses should look in as far as their as I call
Aging in place in the houses and look how well their house is going to be able to support them
once they start aging and look at you know I have a checklist in there of things that you should
look at as far as your stairs and your appliances and just repairs and stuff that you might need
to do to your house as you start getting older those kind of costs if you're not prepared for
them can wreak Haven on your retirement budget so if your house is where you want to stay then
you definitely need to look at it like even the showers grab bars and um stuff yeah steps if
that's going to work as you get older I know with my husband he had had accident he couldn't
go up the steps but it made me start thinking you know as we age you know we're not able to go
up the steps how are we going to do it because we don't have bedroom on our main level so those
are the things that you need to really think about if you're going to decide to stay in your house
so what you need to do and kind of come up with a plan so it doesn't all hit you at once because
sometimes it does you know unfortunately it'll be unexpected like your husband's too I mean there's
no you know Tuesday everything's fine Wednesday the game's changed exactly and you need to kind of
be thinking about that especially like I said if you plan on stay in your house what your game plan
is and start trying to figure out how you can get your house accessible so that as you age it'll
it'll still suit you yes you talk about moving and about a lot of people of course think about
moving when they retire and you also talk about friendships and I'm glad that you coupled the two
of those together because one thing I've always thought and now I know we're here to interview you
Veronica but I'm going to pontificate for just a second no problem because I feel like people think
of moving wait we talked about being too Cavalier with this whole thing this especially to me is
an area where people are too Cavalier I'm just going to move closer to to my kids and what you
find is that your kids are really busy they got a bunch of stuff going on you become a full-time
babysitter but you don't end up interacting with them in the way that they want and all of
these close friendships that you developed over the last 30 40 years I'm a guy who lived for
a decade in Texarkana I moved away to Detroit for two years and Veronica we came back and not
because I have family here in quotes because all my friends are here I see some of my friends
as my friends are getting older you know I find them getting vacation houses that are far away
and we're we never get to see them anymore and I feel like this loneliness this isolation that
we put ourselves into because we think it's great like we're I feel like we're way too Cavalier
about that but anyway I will shut up I'm gonna get off my steps duel what do you think do you do
you're sad at all Joe that is exactly what people do they're very Cavalier they have this idea of
oh I'm gonna live here and it's going to be this great but they have no special connections there
yes or I'm gonna go near the grandkids and the grandkids are getting older the grandkids are
going to grow up they're not going to be here forever be little kids they're gonna grow up and
have their own things or even if they're already older they you know have their own activities and
stuff to do so that's why in the in the workbook I give a checklist you know it just even asked
them oh yeah we want you close by and I say also don't let your only connections be your kids your
grandkids or your kids you know you need to have other social connections outside of them because
a lot of people say I'm a little bit closer for the children and that might not work out so yeah
it's one of those things that I think everybody has this idea of how it's going to be yeah this
grandiose kind of idea so not true so not true and that's why hopefully when you go through
the workbook and you look through the checklist and if you do the exercises that are focused on
that you'll have a clear perspective of whether that's a great move for you or not whether it's
going to work for you and as you retire because I think it's hard harder once you get there to try
to move back so oh agree yeah yeah uh you talked about how I was a retiree now you know you're not
forced to get up and go to work you don't have to now lead the charge like you did in your career
Veronica with your department with your agency time management then becomes really important
then for retirees if you're going to get what value you want out of life so you talk about
morning routine daytime routine idea week again accountability Partners but but I
wanted to end by talking about this time management system for retirees you call it uh
postek p-o-s-e-c can you walk us through that one of the things that people struggle with
the most and I kind of alluded to that before is you had a routine when you were going to
work once you retire that routine is no more and I find a lot of times with new retirees
especially that's where they feel the most lost is there's no structure to the day anymore they're
kind of and all you know all over the place and don't know how they can spend time sometimes just
Milling around not doing anything or whatever so I want you to I you know sometimes when I tell
people you know structure they kind of you know like that's why I'm not working anymore I
don't know why not I don't like yeah well easy easy there all right if you want to try to
put me back at work with destruction my name is this is the whole purpose of retirement I thought
for me to just kind of Mill around and not do anything but I thought we find that when people
do that they get very bored so I just ask that you just think of your days and more how am I
going to start my mornings how am I going to get up in the morning get started and get going
through the day I think once you get that start up in the morning of what you're gonna do it kind
of guides you through the rest of the day but you do need to think about how am I gonna just get
my day started you know when you don't have an alarm clock to get you going every morning so yes
the workbook is is my retirement my way it's a workbook for the newly retired it's funny the way
that you go through goal setting like a 30 year old would just reminds me the purpose is important
no matter no matter where you're at in life and uh the book's available everywhere correct yes it
is yes well thanks so much Veronica for helping our stackers get successful with their retirement
it's funny we talked to a guy Wes moss in Atlanta about his book what the happiest retirees know
and it's so funny how it lines up so well like if you read that and do your workbook you're
gonna implement this and you're more likely to be one of those happy retirees so thanks for
this work no thank you thanks for having me this is Daryl from Pennsylvania when I'm not busy
arguing with a four-year-old um stacking Benjamins oh gee I love that we can talk to Veronica
for over 25 minutes and uh the concept of asset allocation doesn't even come didn't make it
doesn't make the cut we're so busy talking about what about my efficient Frontier it's all going to
change I mean not the efficient Frontier but just your emotional landscape I totally agree with her
you see it all the time you go through this this metamorphosis when you hit retirement and even get
close to it that I think most people are way too wait I guess they're not expecting it's a whole
different world I mean if you've been successful in your entire life this is the transition I
mean just inside the money concept not not all the other stuff that she was talking about right
like time and energy and all that sort of stuff but just the money piece of it transitioning from
being a good saver your entire life to being a good spender for the rest of your life in and of
itself is a difficult change so hard to make that switch and it's even harder when you don't really
know what you want yeah you're much more likely to just hold on to the money and the thing that you
underestimate is time you don't have forever to decide what you want to do would you rather have
Charlie munger's money at uh 90 or his wisdom at uh or you know what is he a hundred or something
like that is his you want to trade places with him basically no nobody would trade places with
Charlie hunger right now for all the money in the world well what if Charlie Munger likes what
he's doing I understand that I'm just saying like nobody would trade places with him because
of the time you know because he's 90 something oh like he's got billions of dollars so it's not
it's not necessarily always about the money I see what you mean but so you so to Joe's Point you'd
end up with a really really happy last two years of your life yeah that's right well it's our
it's our friend uh doc G's book about hospice you know about these people who spent their
whole life chasing dollar bills or people that spent zero time chasing dollar bills they
spend all their time going no I don't need any money and then they realize if I would have
had some I could have had better family time that's a good book hey let's throw out David
lifeline and tackle some of life's most important questions our friends at Haven life insurance
agency Doug they put what you value first I tell you what uh white breasted nut hatches white
breasted nut hatches yeah what is that that's a bird and it's also a realization that you've
become old because one day you're joy riding your frat brothers brand new car to Florida when
all he thought was you were like driving around the block and you're like we're going to Florida
and the next day you're getting out your bird ID app because some Bird shows up outside your
window what is that at least it's an app and not a book yeah true but uh and then I also spotted a
fairly rare for my area a brown merger [Laughter] both of those are fantastic names for birds and
I saw them both this morning but you know you know number one thing OG is it's an app on his
phone but the thing that makes him proudest is that it's his most used app on his phone like he
gets that report from Apple and they're like you open that Bird app a lot well thank you next
to his uh walking step counter app and the one that monitors his blood pressure he's he's also
the continuous glucose monitor blood pressure number of steps in the New Balance app
I don't see a problem with any of this to order new shoes every six months given his
history Anything Could Happen hey uh speaking of anything happening we should uh go ahead and
throw a Paving Lifeline because the answer that question Doug was your loved ones in your time
with a bird app it's why they've made buying quality term life insurance actually simple more
time to catch the brown and merger beeping out of the hole hey stackabenjamins.com havenlife now
please go there and then fast forward this 15 seconds to get us out of this bird discussion
their application's simple getting us to cover his decision their parent company Mass Mutual is
more than 160 years old so you know that they've done this before hey uh today we we I I love
Karen repine our show Runners notes for us this is uh Jim from Wisconsin calling in and Karen
says Jim from Wisconsin a real person not Doug thanks we actually have a real Wisconsin
idea is that was is it wisconsinite or is it just cheese head do you just
say cheesehead yeah I think that's the preferred term it's in their
state either Constitution hey Jim hey guys Jim here and I actually am from
Wisconsin I have a question about what percentage to contribute to my traditional 401K
versus my Roth 401k I'm five to seven years away from retirement maxing out my 401k contributions
I read somewhere that when you have saved six times your annual income you should move all
your future contributions to the Roth option what's the thought process in deciding how much
to put where I'll be looking for that shirt thanks Jim thanks for the call thanks by the
way for proving that you're really from Wisconsin uh Burton from Minnesota needs to
learn from Jim he's got to put some Midwest on that uh yeah if you're listening
from last week take a note from Jim it's a good effort Jim I'll give you that
I mean you made a You made an attempt but [Music] it didn't you don't
think Jim really talks like that but that is not a Wisconsin accent oh not
as good as yours was is that what you're saying I don't know what you're talking
about not as good as the interloper yeah Jim thanks for the call oh gee have you heard
this uh rule of thumb that he's using six times nope six times what six times something I've
never heard that gym next time something I've never heard it yeah the answer to when should I
put money in a Roth 401k versus a regular 401K is largely determined by your ability to pay the
taxes today you know you think about it if you're making a hundred grand and you're contributing
the maximum to your 401k you're putting 22 000 in your 401k this year which if it's pre-tax
is going to lower your taxable income to 78 000 before your deductions and all that other sort of
stuff that roughly is going to save you maybe four or five thousand dollars in federal taxes because
of that contribution not including any state taxes if you switch to the Roth side then that deduction
doesn't appear in your W-2 so you effectively are going to have a four or five thousand dollar
additional tax withholding throughout the year so it's you know back to our discussion at the
beginning of today your budget is going to be affected by call it 400 bucks a month if you can
afford that if you can fold that into your budget and not go into credit card debt or not have to
borrow more money for cars or student you know like if you can deal with it then obviously it's
better to pay your taxes today well not obviously but it makes most sense I think to pay your taxes
today because it's a known thing you know in the future all of that money becomes tax-free forever
and there's no there's no government requirements of withdrawals there's no government requirements
of those distributions that you have to take once you are retired it's all in all the roths side
is way way better but it comes at a cost which is that 500 bucks a month well and I think I would
think OG you know he talked about doing the Roth later in the pretext earlier I would think that
to pay that cost and to make it even more worth it because of the fact that you are prepaying the tax
you need those assets to grow much much much more so I would think that at the very least flipping
that around and doing the Roth first makes more sense like the further you are away do the Roth
don't don't do pre-tax first and then switch to Roth I would do Roth as early as I can and switch
to I mean if I'm choosing one or the other which you and I know this most people that listen to
this don't we haven't had this discussion a long time we don't think either one of these is right
we think you should be doing some of each because you don't know what the future is going to hold
but certainly or Roth first approach versus the other way around it doesn't make more sense
if you're thinking about it from the kind of historical context of your earnings you're going
to make the least amount of money early in your career and the most amount of money on the back
end right like usually that's how it works you your income continues to increase throughout
your career so if you have to pay your taxes I would rather pay them at a lower rate if possible
versus when I'm 50 and I'm making 200 000 a year maybe that's the time to use the pre-tax bucket
because of the fact that most 401ks come with company matches and those matches are also pre-tax
I think that if you can start out doing a Roth early in your career and continue to do it your
entire career you'll end up with a good enough balance of Roth 401k and pre-tax because of the
company matching contributions being pre-tax but if you're really trying to optimize tax brackets
and that sort of thing you can kind of manipulate it as you get toward those higher tax brackets
the problem with all of this of course is that we're taking a very big guess at what tax rates
are the day you withdraw the money how do we know whether or not this worked pre-tax versus
Roth well if you put the money in a Roth 401k and you take it out in the future you're betting
that today's tax rates are better than tomorrow's tax rates you're saying I'd rather pay taxes today
than in the future because the future I think are going to be higher that's what you're saying and
the vice versa is also true if you put the money in pre-tax today you're saying I think I can take
this money out at a better tax rate in the future then I can pay it today so I'm you know I'm at
a high tax bracket today I think I'll be in a lower tax bracket in the future the only way that
you know whether or not you're right is after you know that you're right because we don't have
the chart that says what are tax rates in 2037 because if we did then we would be able to
calculate it and say with certainty this is a better choice based on the circumstances
all we're saying is I think I might have a lower tax rate in the future or I think
tax rates might be higher in the future the one thing that I can say is that if Congress
doesn't change any of the rules Roth contributions Roth growth and earnings are 100 tax-free forever
so I don't care what the tax rates are in 20 years from now when I take the money out because it's
tax-free yeah if I'm gonna lean I'm leaning toward pay the taxes today be done with it that said
slots approach too by the way which is to say you got the cash today pay it today so that you
don't look at your IRA and go I've got a million bucks in my IRA it's like no you don't you have
500 000 in your IRA because half of it is for the government Doug I think this is really important
uh stuff for you I mean given your history with taxes and I have no history with taxes so I'm
good well maybe that's the point you gotta earn something to pay taxes maybe that's the point big
thanks to you Jim for the call if you would like to call and ask a question you know what we will
send you a Haven life stacking Benjamin's greatest money show on earth circus t-shirt and Jim from
Wisconsin really from Wisconsin is getting one cent his way slash voicemail gets you the shirt
and we're happy very happy to send it to Jim as I stare ready Doug as I say that I don't know why
I'm staring at Doug as I said Jim well he sounds hideous what are you talking about well it's
just I mean it's like a fiction just thing right this gym it's like the the State Farm guy that's
who you're talking to I know I think it's Jim I think somebody's having a tough day there OG well
before we say goodbye today time for our community calendar man we've got a great week over on the
stacking deed show where Crystal Hammond and Alan Corey dive into real estate Alex e Edwards is
a guy who helps uh has helped a lot of people in the southeast part of the United States
get out of intergenerational poverty through real estate teaching some real estate helps them
learn how to buy houses how to learn to do it in a responsible way he's going to be their guest on
tomorrow's show over on stacking Deeds of course our other sisters show the earninginvest podcast
doc G always has guests who dive deep into Allah into some some topic that is uh always exciting
and a fantastic and a fantastic discussion he has a friend of ours Fritz from the retirement
Manifesto coming up on Thursday Fritz is a guy who retired young documented his retirement an OG
to Veronica's Point earlier in today's show Fritz has really done it right this guy is so busy but
now doing that second career I think he serves on a couple of boards he Volunteers in the city of
Asheville in a couple different capacities one is working with animals he's always out in his
wood shop this guy has so much going on he's not sitting there wondering what he's going to do
so if you're interested more in in retirement Fritz will be over on earn invest of course here
on Wednesday the draft the NFL draft is Thursday so we've got Rob Welch he and a former NFL player
wrote a book together about going pro with your money we're going to talk Wednesday about no
matter what you're trying to go pro in how do the pros treat their money A lot of pro players about
to get a big payday on Thursday and as we already know a lot of them don't do the right thing with
that sudden money OG it goes in the wrong place that's what's coming up this week thanks so much
for hanging out with us today if you're somebody that's my kind of person and will leave a
review for people that they only know via podcast or maybe you've hung out with this
on one of our social media channels please leave a review of the show that helps us so
much helps new stackers realize what they're getting into a little different take on money
than maybe some of the other shows out there thanks to everybody who's done that Mom puts those
on her refrigerator if you're not here though to hang out with us on social media you're not here
just for Doug's trivia you're here because of the fact that you're worried about the economy you're
worried about your money and and how it works together and as a lot of those fears begin to ramp
up for people you might be feeling anxious to make some moves in your finances what I'd like you
to do instead is check out this free guide that OG and his team have put together that'll help you
plan more and panic less no matter what the market does it has some great insights on what you should
be doing and smart questions to ask yourself so that you make financial decisions your future self
will thank you for head to stackybenjamins.com guide that's stackybenjamins.com guide to get that
free guide from OG all right that is what's going on in the community man a lot of takeaways today
but Doug what are the top three man well Joe first take some advice from our guest Veronica McCain
and create your own unique roadmap to retirement second take a memo from our Tick Tock minute
to up your vocab game and Excel above the competition I'm sure you'll get promoted in no
time but the big lesson turns out five times in a row is the limit to singing Heartbreak Hotel
at the top of your lungs after that Joe's mom starts to get irritable and make threats now that
I think about it probably was the hip thrusting thanks to Veronica McCain for joining us
today you can find her book my retirement my way a workbook for the newly retired to
create meaning set goals and find happiness wherever finer books are sold we'll also include
links in our show notes at stackingbenjamins.com this show is the property of SB podcasts LLC
copyright 2023 and is created by Joe salsi High our producer is Karen rebein this show was
written by Lacey Langford who's also the host of the military money show with help from me Joe and
Doc G from the earn an invest podcast Kevin Bailey helps us take a deeper dive into all the topics
covered on each episode in our newsletter called the 201 you'll find the 4-1-1 on all things money
at the 201 just visit stackingbenjamins.com 201 Tina eichenberg makes the video version of this
show Once We bottle up all this goodness we ship it to our engineer the amazing Steve Stewart Steve
helps the rest of our team sound nearly as good as I do right now want to chat with friends about the
show later mom's friend Gertrude and Kate Younkin are our social media coordinators and Gertrude is
the room mother in our Facebook group called the basement so say hello when you see us posting
online to join all the basement fun with other stackers type stackingbenjamins.com basement
not only should you not take advice from these nerds don't take advice from people you don't
know this show is for entertainment purposes only before making any financial decisions
speak with a real financial advisor I'm Joe's mom's neighbor Doug and we'll see you next time
back here at the stacking Benjamin show foreign [Music] the after show this is uh the part of
the show that doesn't exist if you're new here what happens in the after show stays
in the after show getting back to your clothes I think that singing Heartbreak Hotel at the
top of your lungs just you know given your history might not be might not be great well
since my baby left I find a new place to dwell they're down at the end the lonely streets
called speaking of speaking of Doug's history um there's unfortunately OG a doctor
out there who has violated HIPAA rules and um got us audio from Doug's latest therapy
session and uh well I thought that as long as they broke the rule we didn't we should probably
play it look at the look OG can't wait for this he is so excited about that well I think
this is bad I think doctor shouldn't be doing this but as long as they have let's no
this is this is Doug's latest therapy session you what well you had waffles for dinner and you had waffles for breakfast so we're
gonna eat something else oh I oh I don't know sounds like you're obsessed now
you're really crying pretty good there now everybody is thinking about waffles like that
brain worm is in there and you're going to be thinking about it now for the rest of the
day well I I think I I mean I I really think that uh you shouldn't be thinking about waffles
given your history you're begging for me to ask I've resisted this whole time I'm not gonna
ask I'm not gonna ask why you keep harping on my history so OG and I saw this uh this video
that these guys said that that if you really just want to mess with somebody just end as many
sentences as possible when you talk to them with given your history just say it over and over
and see what happens and watch them watch Doug unravel the entire show they melt it is surgically
effective like it has just been driving me crazy I said it's Alyssa I don't even
remember what it was about but I just you know she was like brushing her
teeth or something and said well you know given your history and she's
like what is that supposed to mean you know just totally like around everything
to a halt just like you said yeah I think that is a bad marital move I said this will work
well with Doug I would not yeah I would not do that right before bed because you are not
sleeping that night stackers you may or may not want to try that your results May Vary but
ours ours I thought today were pretty good Doug didn't know what the hell was going on
actually now that I know it's actually more impressive that you found a way to
dodge my question the whole the whole episode you know given your history of course
yeah I'm not not enjoying your company anymore
Living longer / RETIREMENT – IELTS writing task 2 – Band 7.0+ essay
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
What are you going to do when you retire ？ Now, I recognize many of you individuals.
are possibly rather young and you'' re probably not also believing.
regarding retired life at this phase. Yet retirement'' s a pretty vital point, since when you stop
. functioning and also as you grow older, you have to determine what.
you'' re going to do with your life. Very good concern. And both you and I need to start assuming now since we are going to require our pension plan soon. When you retire, you are completing work. When you stop functioning and also you claim a pension. So, what are the problems of individuals living longer? This is a question that took place in the.
current creating task two component of the test.So Jay, would
you'' d like to review this recent question? Absolutely. The inquiry goes: Nowadays, individuals are living.
longer after they retire. What are the issues triggered by this? And also what actions can be taken.
I assume this is a difficult concern. Keep tuned, we'' re going to come back and give you some suggestions.
inquiry. Correct, Chris? It'' s right, and it'' s among the possibly 4 types.
of question you'' ll get in the examination. As well as you do require to respond to.
What'' s the initial component of the inquiry, Jay? Exactly.And the second part of the concern: What procedures can be taken?
like supplying a service. What options might you assume.
of to resolve this trouble? Currently, my recommendation to you is: When it'' s a two-part concern, you need to have a minimum of 2 body paragraphs, since you possibly need to be.
considering topics for every. We are mosting likely to check out the troubles initially, there are a couple of various issues.
that we can think about, as well as after that we'' ll speak about the options. Nowadays, Jay, people are living till 85, 100, 90, 95 Exactly, and the retired life.
age hasn'' t changed very much. No, I believe it'' s sixty-five, approximately around … Sixty-five. It depends upon your nation. Tell us which nation you''
re. from, and also what is your old age? It'' d interest learn. Now, because the retired life age has not transformed, and people are living longer, that suggests individuals currently live a lot more during their retirement.What various other problems brought on by this? Well, since they are not bringing in earnings. from their work, from their career, it could
potentially trigger. economic strain on a country, due to the fact that the country, the federal government is offering economic help for people. who go to retirement age. To ensure that ' s one significant huge trouble.
That ' s a great concept, and also I just wanted to discuss that word.Economic strain.'Pressure is a wonderful word, which means stress.
You might state economic. stress or financial pressure. They ' re both truly great ways to explain that. I was'assuming of an additional issue, in addition to the economic strain. would certainly be the stress on … Excuse me, stress on healthcare, Definitely. Stress on healthcare. What would be the issues there? Well, of course, as you age, you have a greater percentage or a.
greater possibility of having health issue. When you'' re younger you are healthy, you really feel great. As you get older, there are much more opportunities to. obtain ill, to establish condition, obtain harmed. Older people often tend to trigger extra.
pressure on the healthcare system, and it depends on the country. As well as this is a truly intriguing.
subject between myself as well as Jay, since I'' m from the UK and also Jay is from America. Why exists such a large distinction.
and also what'' s the distinction? Well, in America, the federal government truly doesn'' t. give way too much aid monetarily or in health and wellness care for.
people, whether their young or old.So, if you'' re overcoming all your life, you are anticipated to conserve cash, and also buy, and see to it that you have sufficient.
cash to survive as soon as you retire. Whereas in the UK, we have a complimentary medical care system where.
you can make use of the medical care system. Basically, whenever you want, currently, that can cause some issues. Because people might overuse the medical care system. They may use it, although they wear'' t require it. Living much longer, may have various effects in different countries.So in America,
what happens if people live longer and.
Well, they will certainly still obtain treated. It goes against the vow that they take.
will then enter into severe economic financial obligation. That the quantity of money that.
they need to pay for their health care will certainly go on to their monetary records, and also they will be expected to try to pay that off. OK, so these are 2 huge problems. The financial strain on the.
system and also the medical care stress, the stress on the medical care system. What do you believe could be some solutions? Well, the first option is something.
that my nation does is due to the fact that the government type of go back and doesn'' t take an active. role in aiding its people, there is no stress on the economic climate after that, since individuals that are.
expected to …
When you grow older, you are accountable for your very own.
well being and also your very own wellness treatment. OK, so I was thinking that in a place like the UK, where you can use the system as long as you want, perhaps we require to consider placing.
some stress on the young individuals currently to pay more tax. Yep. To prepare them for the future. Now, both Jay and I live in Australia. As well as Australia is a nation where.
we have a private pension system. As well as both Jay and also I pay into.
a private pension system, and also we know just how much money.
we will certainly have in the future.And that might
be can be a system that took on to make certain that youngsters pay into a system, so they know exactly how much they.
That'' s one means. That people need to work longer. I know there'' s a lot of resistance to this by individuals in their late fifties, early sixties.
near the end of their life time, complete of job as well as recognizing that they are close, so that they can see the.
light at the end of the tunnel is probably quite pleasurable for them, and supply them with a sense of alleviation as well.And after that to be told, no, I ' m sorry, you are mosting likely to need to function 10 more years. That'' s why people could.
In the IELTS examination, this was a recent concern.
subject for you to think of. Simply be prepared to create.
one topic in a paragraph. Make sure you explain your ideas as well as.
please usage examples from your own individual experience and also expertise. Maybe tell the examiner about.
the situation in your nation, whether you assume that'' s a good system, or whether you think there can.
be some adjustments to that system.And one even more
point, constantly bear in mind to have a look at the inquiry, and also invest just a brief amount of time recognizing what sort of question it is. In this instance we have a two-part question, as well as making sure that you answer both.
Thank you, Jay. Make certain you hear, you come and also join us on our IELTS daily application. The application is an extremely, very great means of improving your IELTS talking Your writing.
Jay, you are terrific today. Take care, everybody.
Retired life'' s a pretty important thing, since as soon as you quit
. Remain tuned, we'' re going to come back and give you some suggestions. What'' s the very first part of the inquiry, Jay? That'' s one method. I know there'' s a whole lot of resistance to this by individuals in their late fifties, very early sixties.
Retire Rich: 2023 Ultimate Planning Guide (Step-by-Step)
Jason 0 Comments Career after Retirement Retire Wealthy
– What's going on you guys. Welcome back to the channel. So in this video today, we're gonna be going over a ultimate guide to retirement planning in 2021. You already know I got my seltzer here. I gonna go ahead and
crack this bad boy open. And we're gonna get this
video started shortly. So at the end of the day, most
people do not want to spend the rest of their life working. And since your expenses don't
just magically disappear, when you turn 60 or 65 or
whatever that retirement age is you have to do things in order
to plan for your retirement. And so in this video, I'm
gonna go through exactly what you need to know to
start off this process of planning for retirement. This is going to include a
number of different topics. We're gonna talk about, how to tell when you can retire based on your level of income. We're gonna cover three primary ways that people derive
income during retirement, when to start saving for retirement, which is as soon as possible obviously, where to save for retirement? And we're also going to cover, how to make your retirement money last? Now real quick here, guys I just want to say thank
you to today's video sponsor which is T-Mobile.
We're gonna talk about
that more later on guys but I just wanna mention
here that T-Mobile offers their Essentials Unlimited 55 and up plan which is going to be
offering unlimited talk, text and data on two lines
at just $27.50 per line. It is a great option for people who are approaching retirement
age, who are looking to minimize those monthly recurring expenses. Compared to Verizon and AT&T
you can often save around 50% with T-Mobile. Not to mention guys, T-Mobile is the only wireless
company that offers a discount on the 55 and up plans regardless of what state you live in. Other companies like Verizon and AT&T only offer those discounted
plans in Florida. So you may wanna check that out. In addition, if you're thinking
about upgrading your phone and getting the latest 5G technology, 5G is included at no
extra cost with this plan. But more on that later. Now I'm definitely not looking
to waste your time here with this video guys. So I wanna go ahead and
identify who this video is for.
Well, mainly this video is geared towards people who are
approaching retirement age. You're probably not ready to retire but it's something that's on the horizon in the next 5 to 10 years. And you're wondering what things should you be aware of right now, and how can you get your ducks in a row for when you do approach
that retirement age. This video is also helpful
for those who are just looking to prepare for
retirement early on.
Even if you're in your
20s like me or your 30s, there's things you can start doing today that are gonna be relatively painless. And trust me, you're gonna
thank yourself later, when you have a lot of money set aside for your golden years. Now, many hours of research
did go into this video. So I just have three small
favors to ask you here, guys. First of all, if you are sitting there and watching this on your computer, go ahead and put your phone on silence and put it away for a little bit, because you wanna focus
all of your attention on this video, and not be distracted with all those social media apps, you can go back to those shortly. Also guys, make sure you pause the video and grab a pen and paper.
And if you need one, go ahead
and grab a beverage as well. We are gonna be here for a little bit but I promise to you that I'm gonna answer probably
every question you have about retirement planning in this video. So you're not gonna have to jump to like 10 different videos to get all
of your questions answered. Lastly guys, if you enjoy this video just go ahead and drop a like, it shows me that this
information was helpful and I'm not asking you
to like the video now but at some point, if you're
watching it and you say, "Hey, this was pretty helpful." That little thumbs up button
certainly does help out. Lastly, a few quick disclaimers
I have to make here.
I am not a financial advisor. This is not financial advice. You need to do your own research before investing in anything out there. Don't do what some guy on the
internet just tells you to do. I'm not here to sell you any products. I'm not selling any courses
or anything like that. And lastly, I have been
getting a lot of scam comments down below where people
are impersonating me. They're trying to get
people to send money. That is not me. I wanna put up two comments
on the screen here. This is a comment that's from me. And you can see the check mark and the different way that it looks versus this scam comment that
doesn't have those things. So if you're communicating with
someone down in the comments and it's me, make sure I
have that check mark in place otherwise you better
bet that is a scammer, and they're trying to take your money.
Hopefully YouTube does a
better job at policing this but for the time being, it
is utterly out of control. And I don't really know what else to do other than make this disclaimer
in every single video. That being said, guys,
let's get right into it and start off with when can you retire? And to be honest with you guys,
it's a pretty simple answer but the way of figuring this out is a little bit more complicated and we're going to cover that later.
But the truth is when
you're able to retire is when you no longer need
to rely on active income to pay for your expenses. So most people out there have a mortgage, they have car payments, they have different monthly expenses. And so in order to retire, you have to make sure that all
of those expenses added up, and even those unforeseen
expenses that you can plan for. Well, your level of income derived from your different investments needs to be enough to
cover those expenses. Otherwise you may have to go out there and get a different job to supplement your retirement income. And so for most people that may not be the ideal retirement scenario. So short answer here, guys, you can retire when your passive investment
income exceeds your expenses, but the longer answer is there's a calculation we're
gonna use to figure this out, that we'll discuss later in the video.
So next up, what are your different
options for retirement income? Well, this pretty much comes down to anything out there that
can make you money, but there's pretty much three main areas where people derive retirement income. The first one is your personal savings and your personal investments. So maybe you're somebody
who's worked a job for your entire life and you've been slowly
contributing to that 401(k). And then maybe you also
have some IRA accounts. Maybe you have a Roth
IRA or a traditional IRA.
And then beyond that, you might have a nest
egg with your savings. Maybe you have the taxable
brokerage account as well. And the goal is for
eventually all these things to be able to provide income for you to not have to work in
order to pay for your bills. Now, the second area
where people derive income for retirement is social security. However, we've certainly
heard a lot about this in recent years, and I don't
think it's such a safe thing especially for young people
to be reliant on that in the future because
social security is kind of in shambles right now
where we don't know how long it's going to last. However, if you are
approaching retirement age, that may be something you can count on for the time being is deriving income from social security. However, social security
alone, 90% of the time is not going to be enough
money to pay for your expenses unless you're living in like the smallest apartment in your entire city and you pinch every penny. And at least for me that's not my idea of a good retirement.
And just a couple of statistics I wanna share with you guys
here about social security, 40% of those who are 60
and above are 100% reliant on social security as a means of income. And so, like we said, here,
there's three different ways people typically derive income, but most people are just fully
reliant on social security which is something to be worried about. And if you're a younger
person watching this video, you don't want to put
yourself in that situation. Another surprising statistic here is that the social security trust fund based on the current rates is likely going to run out around 2035.
Now, are they gonna let
it run out entirely? Probably not. What they're gonna do is probably decrease payouts over time, which means that those who are reliant on that as income are gonna start making less and less money if they have to decrease those payouts. So that is why you really
don't wanna be in the situation where your reliant on this
social security income as a means to sustain yourself. And then lastly, the third source of retirement income for most people that's becoming less and less common is something called a pension.
Now pensions vary from company to company. In the past, it was
typically a percentage of your highest earning year
basically paid to you in perpetuity until you are passed away. But what they found is that these things are not very
profitable for companies. And it's very rare to
find any companies today that still offer this pension. But if you're an older
person watching this nearing retirement age, you may still have a pension plan to derive income during retirement.
So your best case scenario
here for retirement is that you're deriving income from these three different sources. Number one, personal savings
and personal investments. Number two, social security,
number three, your pension. That's like the perfect
scenario for retirement. However, unfortunately
only about 6.8% of people over age 60 are deriving retirement income from all three of those sources. So the vast majority of people
probably don't have pensions and some unfortunately don't
have any personal savings or personal investments. So that's the big picture right now. And that's why it's very
important to have your ducks in a row and start thinking
about this early on and planning that way. You can try to have a a
three-legged stool here where you're able to derive
income from multiple sources.
You don't want to be fully reliant on social security or fully
reliant on pension income or personal investments, personal savings. You wanna have different
things that are able to generate income for you
that way you're diversified. Because basically people
who are deriving income from one source are balancing
on a one-legged stool. It's not very stable. You wanna have multiple legs
to that stool, ideally three. And of course in that personal investments and personal savings
category, there's a lot of different things that
fit under this category. For most people, it's stocks and bonds but a lot of people also invest in things like real
estate or precious metals. And there's a lot of people who literally will
just put all their money in real estate, build up, you know a portfolio of 30 or 40 units. And then they live off of
that rental income cashflow. So there's many different
ways to skin a cat here, guys but just understand that
your goal here should be to derive money from
multiple different sources and have three legs to that stool. So next up here, guys, let's
answer the question of, when should you start
saving for retirement? Well, short answer as
soon as humanly possible.
Now, what I mean by this is when you're younger and
your expenses are lower. Let's say you're in
your 20s and early 30s. Maybe you don't have kids yet. Maybe you're still
living with your parents. This is your prime opportunity
to put as much money as you can into your 401(k), maxing out Roth IRA contributions, and basically holding onto
as much money as you can and putting it in
something that grows value. Because the main factor in how much money you have in retirement isn't based on how much
money that you invest.
It's how much time you
allow that money to grow. So even if you're in your
20s or 30s watching this, and you're thinking, "I don't really have a ton that I could set aside right now." It doesn't matter how much you put aside, the main factor is the amount of time that you allow that money to grow. So just for an example here, guys if you're looking to have $1
million in your retirement let's say your 401(k) for example you could invest just $300 per
month, over a 40 year period earning the average return
from the stock market. Or if you wanted to do it in 20 years, you would have to invest $1,750 per month. That's almost six times
more money to get you to the same result. So you can either invest
a smaller amount of money for a much longer time or you're going to have
to invest a lot of money for a shorter window of time. So the sooner you start,
the better off you are. And I highly encourage you to check out a compound interest calculator and play around with some of those numbers if you are a young person
watching this video.
If you're already close to retirement age and you didn't do these
things, don't worry. I still have more options for you that we're going
to discuss in a little bit. And again, it's important
to understand that truly it's never too late to start saving and investing for retirement. So even if you are in your
50 and you have no assets, you should still do something. You know, doing something is
better than doing nothing. It's gonna be a lot harder because you don't have that much
time to let your money grow, but it's never too late.
It's just important to
understand the sooner you start the better off you are. So now, let's talk about where you should be saving
money for retirement. And there's a pretty simple
process to follow here that most financial experts agree on and I'm going to teach
it to you right now. So the very first thing you should do before investing your
money in the stock market and opening up different
investment accounts is to set up an emergency fund. And this is just simply a liquid account. It sits there in a online savings account or a savings account at your bank or maybe a certificate of deposit. And so what you want
here is a rainy day fund. So what most experts
recommend is setting aside three to six months of
all of your expenses. So what you wanna do is sit
down on a piece of paper write down every one of your expenses, your car payment, your mortgage,
groceries, utility bills and come up with that figure. Let's say for most people maybe it's $3,000 per month
is their monthly expenses.
Well, I would encourage you to save up six times that expense
in a liquid emergency fund. So your very first step is to have let's say anywhere from
10,000 to $20,000 parked in a savings account
where it just sits there in case of emergency. And then you're not going
to invest that money. You just leave it sitting there. And if you end up taking
money out for an emergency like a car repair or a medical expense, you replenish that fund and
you keep that amount there. And of course, if your monthly expenses
are going up over time, you're going to want to
adjust your emergency fund accordingly to make sure you
keep enough money in there. So that's your very first
step is, begin saving up money for an emergency fund and
aim have three to six months of expenses sitting in a liquid account. The very next thing you should do after you have your emergency fund in place is to take advantage of any employer match with the 401(k).
So if you're not familiar, the 401(k) is an employer
sponsored retirement plan which allows you to take money pre-tax and put it away for retirement. And it also gives you
a pretty nice write-off on your tax return, which is
something else to consider. Now, I don't recommend
putting all of your money into the 401(k) because
it's hard to access it and you'd have to pay taxes and penalties to get that money out. However, if your employer
is offering a company match, you should maximize whatever
they're offering you because that's literally free money. So back before I was a
full-time YouTuber guys, I used to work for a utility company and they didn't have a
pension or anything like that, but they did have a employer match. So every dollar I would put in, they would match me with an
additional 50 cents up to 6%. So what I would do is I put 6% of my paycheck into my 401(k)
and then they matched me 50%. So I got another 3% for free. So, effectively 9% of my total pay was going into my 401(k) every
single week automatically.
So after you have your
emergency fund established, or at least started. You don't have to have
all that money there before you move to step two. You just want to kind of start that and begin putting a little bit over there every single week to build up that fund. The next thing is to take advantage of those employer 401(k) matches. After that, if you have any
high-interest debt, you know like personal loans, credit
card debt, things like that. You wanna pay that debt off next, because the average
return you're gonna see from the stock market is somewhere
around 8 to 10% per year. And so if you have high-interest debt, like let's say you have a
credit card with 25% interest, the most wise move you can
make financially is to pay off that debt because you're
paying way more in interest than you're gonna earn as a return. If you had $1000 invested and you're gonna make 10% in one year, you're going to make $100.
If you have a $1000 on a credit card at 25% interest over
the course of one year you'd pay like 250 in interest. So even though you could invest
that $1,000 and make $100 you're still paying 250 in interest. So overall it's a net loss. So if you have high-interest debt, you got to get that paid down first before you begin investing in other stuff, just because that's your
wisest move financially. So after you have your
emergency fund in place and after you maximize your employer match and then you pay off your
high-interest debt, if applicable the next thing to consider is an IRA.
And in particular, I like the Roth IRA. Assuming you're able to contribute to this based on your level of income. Now I'm not gonna get into
a whole thing here guys on Roth IRA versus traditional IRA. I could probably spend 30 minutes on an entire video talking about that. So for now, we're just gonna
cover some very basic stuff about the Roth IRA. With your 401(k) as mentioned, you're contributing pre-tax income and you get the write-off. However, down the line when
you draw out of that account that is when you pay taxes. With the Roth IRA, you're actually contributing
post tax income. So you've already paid taxes on it, meaning you don't get any write-off. However, if you follow
the rules and you know you start drawing from
that by a certain age you don't actually have to pay taxes on the growth of your money.
So it's a very powerful account and it allows you to grow
your wealth tax free. The other advantage of the Roth IRA is you can pull out your
contributions at any time. So if you were putting a $2,000
per year of contributions into that Roth IRA, every single year, you can pull out those
contributions at any time, tax free, penalty free. You just can't touch the earnings or the growth of your money. So let's say you're putting
money into a Roth IRA. And then 10 years later, you decide that you want to invest in a
business or something. You can pull that money out
and pull your contributions out and not have to worry
about penalties and taxes.
So I liked the Roth because it's flexible, you can choose where you put that money. You can put it in stocks,
bonds, precious metals there's all kinds of different Roth IRAs. And you have access to that money where you can take out your contributions, if you do need to access it. So now assuming that you have
the emergency fund in place, you're maxing out your 401(k), you've paid off high-interest debt, you've maxed out Roth IRA
contributions for the year. After that, that's when
I would put that money into a taxable brokerage account where you're able to invest that money, you're able to touch it
you're able to access it.
The only thing is you pay
taxes on your dividends and taxes on those capital gains. But for the most part, that is the generally agreed upon plan for where you should save
money for retirement, is in these different things
that you have control of. And this is all within that category of your personal savings
and personal investments. As far as your pension goes that's all based on your employer, most of them are not
offering any pensions today. However, if they offer it and it's something you
have to contribute towards, if you expect to stay with
that employer for a long time and make a career out of it,
that is definitely a wise move.
And then you automatically pay into social security if
you are a W2 employee. So that's not really something
you have any choice over. So now let's go ahead
and cover how much money that you're going to
need in order to retire. Well, it's kind of a moving target and it's going to change
based on your lifestyle. I mean, are you looking to live in a one bedroom apartment and
drive a ten-year-old vehicle and you know, eat canned
beans for a living? Or do you want to retire
on a beach in Miami? So it all depends based on your lifestyle.
But there is again, another
generally accepted calculation that financial experts use, to calculate necessary retirement income. And it's something called the 4% rule that I'm gonna teach you right now. Also guys, just a quick reminder, I know I mentioned this earlier, but if you have found any
value in this video so far, a like would certainly be appreciated. It helps this video to be
shared with more people. And if you have any thoughts or questions leave me a comment down below. But anyways let's talk
about this 4% rule now.
Now, as far as the math behind this goes, I'm not going to get into it. If you wanna watch,
there's plenty of videos about the 4% rule that we'll
go into a lot more detail but essentially it's a
very simple calculation. What you're going to do,
is you're going to multiply your desired retirement income by 25. So let's say for example you wanna have $40,000 per
year of income in retirement. If that's how much money you want, you want to multiply that by 25. And that will tell you a rough idea of how much money you should have in your savings and your investments in your personal investment
and savings accounts. So for example, if you
wanted $40,000 per year, you would multiply that by 25 and you would come to the conclusion that you're going to want
to have $1 million saved and invested in these different accounts in order to sustainably derive $40,000 per year from that account
without running out of money.
Now, if you wanna be a
little bit more conservative, there is the 3% rule which
is going to be a multiple of around 33, but anywhere
between 25 to 33 times, your desired annual retirement income is how much money you
should have set aside saved and invested for retirement. So obviously guys, the main thing here is the
less money that you need per month based on your lifestyle, the less money you need saved and invested and the sooner you can retire. That's where that whole
FIRE movement comes from or Financially Independent Retire Early, that's people who live off of
as little money as possible. They save as much as possible and they aim to be retired in their 30s. And they're able to accomplish that by living off of as
little money as possible. I did a whole video on this
called how to retire by 30. If you guys wanna check it out at the end I will include a link down below. So now what I want to
cover here is what to do, if you're somebody who
doesn't have 25 to 33 times their desired annual income in a savings or retirement account.
Maybe you're already in
your 50s or early 60s. And you're saying, "What am I gonna do? I don't have money that's just going to fall out of thin air to put in this account,
what options do I have?" Well, let's cover those right now. The main things that you can do are surrounded by things
that you can control. And the main thing you can
control is how much money you're actually spending
during your retirement. So essentially you have two options.
You can try to make more money or you can try to spend less money. Now I'm more of a fan of
the offensive approach here which is figuring out
how to make more money. And so let's talk about that now. The first thing you could
do is figure out some kind of side hustle that you wanna
start maybe in retirement or maybe you wanna do this
before retirement and save up extra money and take all
that money and invest it. I've done a lot of videos
about side hustles. We're not going to get into them here but just understand that
this right here, this laptop this provides a lot of
opportunities to make money.
And it's certainly not rocket science, and I know a lot of people who in their later years have started
YouTube channels and blogs and these different things that allow them to make extra money on the side. So the first thing you wanna consider is, "Hey, let me look into
starting a side hustle." Second of all, pretty simple, spend less money now, pre-retirement. That way you can save
more money to invest. So if you're in your 40s
or 50s, and let's say for example, you're driving
a brand new luxury car and you're watching this
video and you're realizing, "Oh crap, I'm not
preparing for retirement." Maybe you make some
small sacrifices today, that allow you to save
and invest more money. So maybe you trade that car in and you get an economy vehicle and you take that difference
in your monthly payment, and you put that into your
Roth or your 401(k) instead. Another option, pretty simple, spend less money in retirement. We're gonna cover that
more in a little bit. I'm gonna give you guys some
tips on how you can do that.
And then lastly, option number four not the best one, which
is delaying retirement. Maybe you wanna push it
until age 70, age 75, which will allow you
to stay working longer. It will allow you to contribute money towards retirement accounts
and investment accounts longer and allow that money to
have more time to grow before you have to start drawing. So now what I wanna cover
here is a rough idea of how long your retirement
money is going to last. And I don't wanna sound morbid here guys but the truth is, you want
your retirement money to last until you pass away. And then you also wanna make
sure you have enough money sitting there to cover medical bills, funeral costs, and things like that because most people just
don't wanna be a burden on their family when they pass away.
Where they're out of
assets, they're in debt and then their family
has to scrape together 10 or 20 grand for a funeral. So it's not something that
we like to think about or really talk about but it is something that's important to prepare for. And so your goal here should
be to have enough money that you can have your money outlive you and cover some of those costs and maybe have a little
bit of money to pass on to your family as well,
maybe towards, you know college expenses or things like that. But anyway, let me give you
a couple of pointers here on, how long that money will last in a couple of different
factors to consider. Well, first of all how
long your money will last is going to largely depend
on your investments. Some of them are lower risk and some of them are higher risk. And so if you're investing
in higher risk assets, they may be more volatile but you may also see greater returns. On the other hand, if
you're super conservative and let's say you only put your money in fixed income assets, you may find that you're not taking on enough
risk, and you could find that your money doesn't last
as long as you need it to.
So, one of the main things
you have to understand with retirement is that asset mix. And for most people, it's a
split between stocks and bonds. And so that's the main
thing you wanna focus on is that allocation. If you'll have too much money in stocks and not enough in bonds, you might be taking on too much risk and your portfolio could be very volatile, going up and down in value all
the time, stressing you out. If you're too low-risk you might not be growing
your money fast enough and it might run out too soon. So figuring out that asset
mix is very important. Now as far as that number goes, there's a couple of different
rules of thumb out there, but one that most people agree upon is the 110 or the 120 rule. And it's based on your life expectancy. So, I actually am a fan of the 120 rule, which basically means
you take your current age and subtract it from 120. And that tells you how
much money you should have in stocks and the rest should be in bonds.
So for example, I am 25 years old, I would take 120 minus 25,
and that leaves me with 95. That tells me that 95% of my money should be in stocks and
only 5% should be in bonds. Whereas if we take a 70
year old, for example we would take 120 minus 70,
and that leaves us with 50. And that tells us that
50% should be in stocks, 50% should be in bonds. Now, of course, guys that
is a very basic example and it doesn't take into account your unique personal situation. So for exact numbers I
would actually recommend speaking with a financial
advisor and you don't necessarily have to have them manage your money, you can pay them for a
one-time consultation where you're basically saying,
"Hey I want you to tell me what my allocation should be, and help me understand how
that changes over time." But by far that's one of
the most important factors to consider is your asset
mix or asset allocation? Now in general guys, that 4%
rule that we discussed earlier has been pretty successful,
and most people have found that it lasts them around 30 years, which is a pretty long retirement.
That's about how long most
people expect to be around once they retire. However, the success of that
4% rule is largely dependent on that asset allocation we discussed. Because if you're not
taking on enough risk, and you're only earning
a very small return, you're going to dwindle
that money a lot sooner. Another important factor
to consider is taxation. And this varies based on the types of accounts that you have. As mentioned earlier, the Roth IRA is an account
where you put your money in and you pay taxes on the way in. But when you draw from that account you don't pay any taxes. Whereas with the 401(k)
it's tax-free going in but when you come out, you're
actually going to pay taxes.
So this tax situation
is largely dependent on your own investment accounts. Maybe one person has all
of their money in a Roth and somebody else has all
of their money in a 401(k). Those are vastly different tax situations. And this is a scenario again
where a financial advisor can look at this for you, and help you with some tax planning. And you can understand what
are the tax implications associated with your
different investments. So now that you have a
general idea of the factors that will tell you how
long your money will last, let's talk about some different ways to make your retirement money last longer. So the first thing you can do to make your money last longer, which is getting more and more popular is something called downsizing. So most people end up having a home where they raise their kids. And let's say that you're still
together with your spouse. You may now be in this situation where you have this three or four bedroom house, you're paying to heat all those bedrooms.
And you're maintaining this big house, when you're only utilizing
like 25% of that space. Even if your mortgage is paid off, you're still paying for
utilities and landscaping and things that on a much
larger property than you need. So you could downsize into an apartment or downsize into a smaller house. That's becoming more and more popular with the goal of reducing
your fixed monthly expenses. Another option, going back
to the side hustle idea, maybe you Airbnb, a part of your home or you do one of your bedrooms
or something like that, to figure out how to generate
income from that unused space.
But downsizing is a very popular option. Another one is reducing
your fixed expenses like your car payment, as
well as things like your utility payment and things
like your phone bill. So this is where I wanna
talk more about our sponsor for today's video, which is T-Mobile, because they have specific wireless plans designed for people in
retirement to save you money on those fixed monthly costs. So, 55 and up customers who live anywhere in the United States, not just Florida are able to get two lines
of unlimited talk, text and data on T-Mobile's network,
starting at under $30 each.
Which if you have an existing phone plan you have a general idea
of what you're paying, and I can tell you guys right now I'm paying a heck of a lot
more than $30 per line. Now you might be wondering if you're getting some really
cheap plan in the process and the answer is no. In fact, it comes with a lot
of different bells and whistles and extra perks. For example, it comes with the industry's best scam protection, unlimited
3G mobile hotspot data, international texting, no
annual service contracts, your very own dedicated
customer service team, as well as additional
free items here and there and discounts every single
week through T-Mobile Tuesdays. So oftentimes if you
switch from a carrier like, AT&T or Verizon, over to
T-Mobile with this plan, you could save upwards of
50% every single month. And while it may not sound
like a lot of money upfront when you factor in that cost
over the next 20 or 30 years, these little things you
can do to save money on those monthly expenses
really are going to add up. So if you are interested
in those 55 plus plans through T-Mobile, switching
carriers is very easy.
If you're ready to make the switch, you just have to stop
into a T-Mobile store, or you can call 1800 T-Mobile or visit T-mobile.com/55, and I'll go ahead and
include links to all of that as well as the phone number down below, if you guys wanna go
ahead and take advantage of those discounted plans. Now another thing you can do
to make your retirement money last longer is falling
into that category of delaying your retirement. You can also delay taking social security, and this can lead to you having
a larger monthly benefit. So for every year that you wait, you're going to get an
additional 8% in social security, every single month. And if you wait until age 70
to start taking social security you can get up to 24%
more every single month. So if you can delay retirement, and delay taking your
social security benefit, that can result in
additional monthly income. Another great strategy is exactly what we're talking about here, which is having a retirement spending plan before you stop working.
So you do things in advance
to get your ducks in a row. You cut down on recurring monthly expenses like your phone bill,
maybe you take advantage of something like
T-Mobile's 55 and up plans. Maybe you downsize, or you
decide to Airbnb a spare room as us as a side hustle. You just start planning early on before you hit retirement
age, and then you think, "Okay, I haven't planned for this at all. Let's get something going." You're better off to plan in the beginning and get your ducks in the row early. Another suggestion that I have is utilizing credit card reward
points, because a lot of people in their later years want
to travel during retirement. We're in a unique situation right now with the global pandemic,
but once it's safe to travel, that's a popular thing
in your retirement age is seeing the world.
Well, if you're able to
effectively use credit cards and get free points for
travel or free miles, that's another way to get
more bang for your buck. And as long as you're not paying interest on those credit cards and you're paying them
off every single month, I would highly recommend utilizing
credit card reward points and bonuses for travel. Lastly, one of the
things that you can do is make investments in your health to make sure that you're
not having a lot of medical stuff coming up in retirement.
Hopefully you have some
plan for health insurance. So let's say now that worst case scenario, you're somebody who is
in retirement right now and you're slowly realizing that you're going to run out of money. You don't have enough for that 4% rule and maybe you only have
one leg to your stool, which is social security. What options do you have available to you, if you know, you're going to fall short? First of all, as covered
earlier, you can reduce expenses or pick up a part-time job or side hustle.
A lot of people in
retirement end up working 10 or 15 hours per week on the side. Number one for something to do, and number two, just to
have extra spending money. Another option is to tap
into the value of your home with a home equity line of
credit or a reverse mortgage. That's pretty complicated, not gonna get into that
too much in this video, but if you want to hear more about that leave me a comment down below, and maybe I'll do a whole video talking about the reverse mortgage. Another option that you may explore is, if you have a life insurance policy, you may be able to tap into the value of your life insurance policy and get something called the cash value, if you draw on that early. Again, complicated subject
maybe a topic for another video but if you have a life insurance policy, you should sit down
with a financial planner or financial advisor and ask
them about those options.
And one thing I want to mention here is, if you're somebody who's in retirement and you know that your
money supplies dwindling, don't ignore this problem. There are things that you can do. The longer you wait the
worst it's going to be. So I would start addressing
these issues now. So just to wrap up here guys, one of the main things
that I want to recommend as a call to action is it
may be worthwhile to sit down with a fee only certified
financial planner.
It's gonna cost you a couple
of $100 out of pocket, but they're going to be
able to help you answer a lot of questions you may have, such as asset mix, asset allocation. There'll be able to look at your different retirement accounts
and help you understand the tax implications,
because on the surface retirement planning is pretty simple. It comes down to your
expenses, your income, your lifestyle needs, and basically what you're looking to get
out of your retirement. But when you look into
the individual details that each person has with
their different accounts, that's where it becomes more personalized and more complicated. So I think you're going
to get a lot of value out of a fee only
certified financial planner that you pay an hourly rate to, that way you can get unique information about your personal financial situation. At the end of the day here guys, if you fail to plan, you're
essentially planning to fail.
And I want to discourage
you from doing that. This isn't the most exciting topic and it's certainly not on
the top of my to-do list but retirement planning is very important. So I encourage you to take
action on this advice today. I thank you so much for
watching this video. I hope you've got a
lot of value out of it.
Let me know down in the
comment section below what your thoughts are on this. And if you made it to the
very end, let me know too because I'm always curious
how many people stick around for full videos. Lastly, one last, thank
you here to T-Mobile for sponsoring this video. I have a link down below, if you wanna check out
T-Mobile's essentials, 55 and up plan, which is a great option to minimize your monthly recurring
expenses in retirement, to make sure that money lasts longer. If this is your first time
seeing me make sure you subscribe and hit that bell for
future notifications, and on that I hope to see
you in the next video.
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