Category: Retirement Planning
5 Best Fidelity Funds to Buy & Hold Forever
Jason 0 Comments Retire Wealthy Retirement Planning
today we're going to talk about the five best fidelity funds to buy and hold forever hi if you're new to the channel my name is tay from financial tortoise where we learn to grow our wealth slow and steady in order to guide our conversation i'm going to use the three fund portfolio strategy to frame the fidelity funds i'm going to recommend in this video the three fund portfolio is one of the most popular do-it-yourself investment strategies and as the name implies it's made up of three simple funds most often an equities fund an international fund and a bond fund so all the funds i'm going to recommend today will fit into at least one of these slots the first fidelity fund you want to buy and hold forever is fidelity's u.s bond index fund fxnax it tracks the bloomberg barclays u.s aggregate bond index which is composed of investment-grade government bonds corporate bonds and mortgage-backed securities it holds approximately 8 400 bonds the top issuers are the u.s treasury or issuers of mortgage-backed securities like fannie mae and freddie mac it has an expense ratio of 0.025 percent which means if you have 10 000 invested in fidelity us bond index fund you're essentially paying 2 dollars and 50 cents for fidelity to manage this fund for you the fund started in 1990 and since then its average annual total return has been 5.33 percent so what are bonds and why do you need them in the simplest term bonds or loans when you buy bonds you're essentially loaning money to someone in this case to a company or a government agency and they're a very important addition to a well-constructed investment portfolio because of how different they are from stocks a good analogy i like to use to frame stocks versus bonds is this think of stocks as your core wealth building engine without it you aren't really going anywhere and bonds are like your brakes without it you could drive yourself off the road when you have bonds in your portfolio it helps to smooth out your investment ride because though they have lower returns they have less volatility during times of market crash where your stock investments can dip by 20 to 30 percent your bond investments will hold steady and ensure your right is so rocky so in order to help you smooth out your investment right you want to start adding them to your portfolio as you get closer to retirement age and if you're invested in fidelity consider fidelity u.s bond index fund as your core bond holding in your portfolio the second fidelity fund you want to buy and hold forever is fidelity total international index fund ftihx the fund tracks the msci all-country world index excluding the united states it represents approximately 5 000 international companies the top companies in this fund are made up of companies like taiwan semiconductor nestle and asml holdings it has an expense ratio of 0.06 percent which means that if you have 10 000 invested in ftihx you're essentially paying six dollars for fidelity to manage this fund for you the fund started in 2016 and since then its average annual total returns has been 5.99 what the fidelity total international index fund will do for you is provide you exposure to the international market outside the united states exposure to different countries sectors and even currencies and we can look at what happened to the japanese stock market as a lesson on why we might want to hold an international fund at the end of 1989 the japanese stock market's capitalized value was considered the largest in the world the nikkei 225 index the index of 225 largest publicly owned companies in japan reached an all-time high of close to 40 000.
Sadly 22 years later the nikkei was under 8 500 and to this day has yet to reach its all-time high again but satur is a japanese investor who failed to invest in international stocks outside of japan the us-based companies are currently the world leader in market capitalization and revenue but who can confidently say that will stay like that in the future it would be unfortunate but the same thing could happen to the u.s stock investors i personally still have strong confidence the u.s economy and u.s based companies as a whole but i also have to continuously check my assumptions financial writer larry swegel had a saying never treat the highly likely as certain and the highly unlikely as impossible as you get more comfortable with the international market you can start adding them to your portfolio and the fidelity total international index fund is a great option to represent your international holdings the third fidelity fund you want to buy and hold forever is fidelity zero total market index fund fzrox the fund tracks fidelity's in-house fidelity u.s total investable market index it represents approximately 2 700 u.s based companies the top holdings in this fund are apple microsoft and amazon it has an expense ratio of zero percent yes you heard me right zero dollars to invest in fidelity zero total market index fund thus the zero in its name the fund started in 2018 and since then its average annual total returns has been 11.82 the fidelity zero total market index fund is a total market index fund which means it tracks the total u.s stock market so this will be a great option as your core equities holding in your three fund portfolio however there are a couple things i do want to note with this fund especially in comparison to the two other equities options i'll cover here in a bit one is the fact that the index it is tracking is fidelity's in-house index fidelity u.s total investment market index this necessarily isn't a bad thing but there are actually more than 2 700 publicly traded companies in the united states than what this fund represents what this fund has done is exclude really small companies from its index in a big scheme of things this doesn't make that much of a difference in performance since the representation is based on market capitalization so the excluded companies would only represent maybe one percent or even less than that of the total fund but this is still something to note the total market here isn't quite the total market a second item to note with the fidelity zero total market index fund is the fact that you can't transfer your shares to another firm without selling your holdings and when you sell your holdings you have to pay taxes on your capital gains the fidelity zero total market index fund was designed with zero percent expense ratio in order to gain more customers so fidelity doesn't want you to move your money to a different firm and this limitation creates that barrier paying zero percent is nice but you won't understand that free comes with some strings attached but if you're planning to stay with fidelity for life fidelity zero total market index fund is a great equities fund to hold the fourth fidelity fund you want to buy and hold forever is fidelity total market index fund fskax the fund tracks the dow jones u.s total stock market index it represents approximately 4 000 u.s based companies the top holdings in the fund are apple microsoft and amazon essentially the same as fidelity zero total market index fund it has an expense ratio of 0.015 percent which means that if you had 10 000 invested in fidelity total market index fund you're essentially paying 1.50 for fidelity to manage this fund for you the fund started in 1997 and since then its average and annual total return has been 8.29 it's fidelity's original total market index fund prior to the introduction of fidelity zero total market index fund and fidelity total market index fund does exactly what his name implies invest in the total u.s stock market essentially every u.s based companies out there when it comes to investing in the stock market the key principle you want to abide by is diversification many people tend to think the only way to make money in the market is to beat the market by either selecting good stocks or good actively managed mutual funds unless you're a professional investor with hundreds of analysts working for you around the clock analysts who are constantly interviewing and researching companies and industries we can't win in the stock picking or fun picking game the odds are just stacked too high against the individual investor so the best strategy to beat wall street is to just track the market and at the lowest cost and fidelity total market index fund is a great fun to hold as your core equity is holding in your portfolio if you want more flexibility from the fidelity zero total market index fund the fifth fidelity fund you want to buy and hold forever is fidelity 500 index fund the fund tracks the s p 500 index which represents the 500 largest publicly traded companies in the united states at the time of this video there are exactly 508 publicly traded companies in this fund the top holdings in this fund are apple microsoft and amazon essentially the same as fidelity zero total market index fund and fidelity total market index fund not a surprise given the company representation is based on market capitalization and these big companies represent a good percentage of the market as a whole it has an expense ratio of 0.015 percent same as fidelity total market index fund so if you have ten thousand dollars invested in fidelity 500 index fund you're essentially paying dollar fifty for fidelity to manage the fund for you the fund is the oldest of the bunch it started in 1988 and since then its average annual total returns has been 10.66 percent when most people talk about the stock market they're most often referring to the standard and poor 500 not the total market index and the reason is because it's so much older it was created in 1926 when it began tracking 90 stocks and in 1957 the list expanded to 500 and for the past century it has been the go-to index to represent the stock market when you turn on any financial news reporters are always discussing how the s p 500 is up 50 points or down 100 points it essentially represents the 500 largest u.s corporations weighed by the value of the market capitalization and because it's weighted by market cap though there are approximately 4 000 publicly traded companies in the united states total these 500 stocks represent about 80 to 85 percent of market value of all u.s stocks and the weight within the index automatically adjusts based upon the changing stock prices to this day the s p 500 remains a standard to which professional mutual fund managers and investment firms compare their returns against so if you want your equities holding to match the performance the largest u.s stocks since they're essentially what moves the market hold fidelity 500 index fund as your core equities holding but i do want to say this whether you choose the fidelity 500 index fund the fidelity total market index fund or the fidelity zero total market index fund as your core equities holding you really can't go wrong with any one of them they're all great funds you just want to understand exactly what you're buying that's it guys i know i normally advocate for vanguard funds but sometimes you may not have the ability to choose the investment firm that you want because maybe your employer doesn't offer it that was the case for me and therefore most of my 401k is actually invested in fidelity fidelity is a great investment firm if you're looking to invest with them pick any of the five that i mentioned here and you can't go wrong if you'd like to learn more about the three fund portfolio and why you might want to consider it as your strategy check out my video here thank you guys for watching until next time all the best
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Do Withdrawal Rates Make Sense for Retirement?
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
As you plan your retirement, one of the biggest questions that comes up is how much can I afford to spend each year, and how can I be sure that I won't run out of money if I spend at a certain rate? And a lot of people look to a withdrawal rate to help them figure that out, in other words, they might say, Maybe I can spend 4% or 3%, and that way I would have enough money to last for the rest of my life, but I think there are a lot better ways to go about that, so I wanted to review those with you and point out some of the issues, and hopefully this way you see what you might be missing out on if you use a withdrawal rate and you don't have to waste any time obsessing over what exactly is the perfect rate…
I should mention that when I work with clients, we don't really even look at The withdrawal rate, it's something we can find after the fact, after we've done some more robust planning, but we don't start with a withdraw rate, it's just something we might check out of curiosity. As a quick refresher, a withdrawal rate is a way of looking at how much you're pulling out of your savings and investments that are earmarked for retirement. Perhaps. The most famous and the most notorious is the so called 4% rule, which is really more of a research finding, so it's not a rule that you would necessarily follow, although some people talk about it that way. It's based on some research that was done by Bill Bengen where he looked at how much could you withdraw from a portfolio over a typical 30 year retirement horizon, and let's say you have a 50 50 stock and bond portfolio.
Well, what it turned out was in his research at the time, you could take out 4% of your starting portfolio and adjust it for inflation and not run out of money in any of those worst case scenario historical periods that lasted 30 years. Now, since then, the rule has been debated and criticized and refined, and people talk about things like, what about the current environment? Or what if I diversify more? How might that look? And a lot of people just love or hate the 4% rule. Either way, I don't think it's the best way to go about it, but it's important to understand how it works. So just for simplicity's sake, let's use round numbers that are easy to multiply in our head, and we'll say, let's say you have 100,000, or for each 100,000 of savings that you have at retirement, we would say You can pull 4% of that out per year, and we start with your first year, 4% of 100,000 is 4,000. So that's your Year One withdrawal, now you're going to adjust this for inflation each year, so in the subsequent here, If inflation is anything above zero, you're going to pull out more than that initial 4000 and with each passing here, you're going to adjust your withdrawals, you continue to take those inflation adjusted withdrawals each year, regardless of what happens with the markets or how high inflation is for at least that's how it worked in the original research, so that's a basic overview of a withdrawal strategy like the 4% rule, but just as one example of something that might be missing in that analysis because it's pretty over simplified is taxes.
So for example, are you pulling money out of pre tax accounts that you're going to go income tags on like a traditional IRA, or are you pulling from taxable brokerage account or Roth accounts? They wouldn't necessarily have as much tax, so depending on where the money comes from, that 4000 or 40000, if you have a million dollars is going to offer you more spending money or less…
Now again, at a 40000 income, the taxes might not be too burdensome, but you need to know that there are probably some taxes due, so that's going to affect your budget, another issue with withdrawal rates or the 4% rule, for example, is that you might not spend as much as you could, and that might mean you're missing out on opportunities, making memories or doing things you want to do, or retiring at a later date then you need it to… Historically, there were quite a few runs where you ended up with a lot more money than you started out with, so we assume you started with 1 million dollars, you did a 4% withdrawal rate, and you had more than 2 million at the end of your life, 45% of the time, your money doubled over your retirement years, or in some cases, you might have died with more than 5 million.
That's great if your goal is to give money away at death, but if your goal is to maximize your enjoyment of your assets during life, then a simplified withdraw rate might not let you do that. This would be a perfect time to mention that past performance does not guarantee future results, and this is just a short video, so friendly reminder, please do a lot more research before you make any decisions, decide to take any action or not, because this stuff is really important. So please read that carefully, and by the way, I'm Justin Pritchard and I help people plan for retirement and invest for the future, so in the description below, you're going to find more resources on this topic, some discussions about withdrawal rates and some calculators that help you work with withdrawal rates, if you want to go that route and look at some alternatives, I think you'll find all of that helpful.
When you make a more robust income plan, you might have a withdrawal rate that varies over time, so it might start relatively high, perhaps you're withdrawing at a relatively high rate in the early years of retirement and spending down some assets, and that might be something you do as you wait for Social Security benefits to start, perhaps you're going to delay Social Security, maybe you want that time to make a little bit of room so that you can do Roth conversions or fill up some tax brackets, or maybe you're just trying to maximize what your Social Security benefit is, there's some really good reasons for doing this, for example, maybe there's going to be a survivor involved, and you want to make sure that that benefit is as high as possible because once one spouse dies, for example, the surviving spouse would be left with just one Social Security income, so perhaps it's important to have that be as high as possible, and here's an example of how that could look, so we can just check somebody's withdrawal rate.
And in this case, they aren't going to start Social Security until age 70, so they have started out with a relatively high rate here, then it drops off as other income sources kick in, they're in the low threes here for a while, and then when Long term care expenses come up, you're back to a high withdrawal. We can also see how it looks kind of visually with the asset levels, so again, at retirement here, maybe they're going to wait until 70, they're going to spend down some assets for a while, and then that curve… And by the way, this can be kind of nerve racking to watch your assets decrease over time, but if you have a plan in place and you've got those retirement income sources that can perhaps help you have the confidence they, again, here spending down assets until the Social Security and pension sources kick in, and then the withdrawal rate decreases dramatically, now, not everybody has a pension plus Social Security, that's actually going to help them increase their assets once those income sources kick in, but some people are fortunate, and that's what retirement looks like for them.
One other issue with withdrawal rates is that your spending can change over time, so as just one example, maybe you're going to buy a car periodically, and so that spikes your withdrawal rate every couple of years, so how do you deal with that? Or if we look at research on retiree spending, not everybody spends a flat inflation adjusted amount each year, in fact, for some retirees, you might have them spending at roughly inflation minus 1%, of course, that ignores those healthcare expenses which continue to increase at a pretty fast rate, probably faster than general inflation is a good way to model that, but other expenses might not increase, so if you own your home and you don't drive too much, for example, you might not be experiencing a lot of inflation. In fact, David Blanchett's research called the retirement spending smile actually shows retirees spending at roughly inflation minus 1%.
Or another way to look at this is your retirement spending stages. Sometimes people call this the go go, the slow go and the no go years. So right after you retire, you might be spending at a relatively high rate, these are your go go years, you've just finished working, you've saved all your life, you want to travel and have fun, and so you're going to do that while you're still young and healthy, but then you get into the slow go years, your spending might slow down a little bit, you've done a lot of the travel, you're spending more time just with friends or family or whatever the case may be, and then we get into the no go years where a lot of your leisure and entertainment recreation spending are going to decrease, but that healthcare spending ramps back up in the no go years, so if we're thinking of that in terms of withdrawal rates in the go go years, you're at a relatively high rate, slow go years, not quite as high, and the no go years, you're back into a relatively high rate, so I hope now you have a richer understanding of withdrawal rates.
If that helped, please leave a quick thumbs up. Thanks, and Take Care..
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ZERO Savings at 50? Plan for Retirement NOW đź’°
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
What are we doing here? What's going on?
>>What are we doing here? >>This is a super-simple game. We're fishing for advice. Give me that.
>>See, I chose the right outfit today.
Yeah. [Fishing for Advice With Financial Advisers] I know you guys are probably thinking
I'm a professional fisherman, but I'm not. I'm a financial coach. You are 50 years old and have not started
saving for retirement. What is the first thing you do? Panic! No, I'm just kidding. So, at 50 years old, that is a big
wake-up call for a lot of people, and the very first thing you do is take stock of where your money is going today, because
you are gonna need to seriously amp up your saving. So, not everybody needs to
have some giant savings.
You need to have enough to replace the amount of income
you're gonna spend in retirement. I'm gonna just cheat a little, because I'm
really embarrassed. So I would just take a minute to assess my full
financial picture and actually sit down with the numbers to take financial
inventory. So I think step 1 is just going through what are all the
accounts I have, what is everything I own, what's the value of everything I own, and
then making another list of everything that I owe. And then from there you can
be like, "OK, well, this is the money that I actually do have, and so maybe there's a
better way for me to maximize this for my retirement." I feel like 50 is the new 20 or
30, you know, still not too late. Yeah, don't think that it's over.
Consider it like a halftime. This is where you go
into the locker room and you look at what you did in the first half and what
can be done better for the second half.
You come up with a new strategy, a new game plan, and then you go out into the second half,
and you prepare to win the game. [Cheering] I have to say this is the weirdest game
I've ever played at a FinCon. You're 50 years old — I am 50 years old — and
have not started saving for retirement. What's the first thing you do? You breathe, and you don't panic, and you start now. What you should not do is
think, "Well, it's too late now, so let's just see what happens in the next 20, 30
years." Because that is going to lead to disaster.
You still have time to turn this around,
but you have to get serious about this now. So you would talk to a
financial planner, come up with a game plan of how you can reduce your spending,
how you could put extra money into savings, and how you can kind of catch up. Once you've found the money, you are gonna automate the flows into those IRAs and 401(k)s, because if you don't automate it, you're gonna force
yourself to go through this exercise again and again, but if you set it and
forget it, you will continue to make headway.
All right, here we go. It’s why I got this net, man. The first thing I want you to do, I want you to take positive action. I want you to look around this minute, right now, and make a decision on some things you're gonna change. And it might be your attitude, it might be
the way that you're spending money, it might be the way that you're even looking at money. Be positive.
You know, it's not over till it's over. You can do it, you just have to start
doing it right now. Whoops! All right, everyone, listen. Gaining
information is absolutely imperative. It keeps you aware and it keeps you motivated. So be sure to subscribe to AARP's YouTube channel. OK, come on. All right. I'm just gonna pick these
fish up. OK! [Laughter].
Retirement Tips You Can’t Afford To Miss!
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
we've all heard retirement is not an ending but I think we need to add to the sentence and say it's a gateway to your life's best Adventures wow so dramatic today but like any new chapter in life it's going to you know it this does come with challenges it comes with uncertainties but it also comes with a lot of opportunities you know make no mistake how you prepare today determines the quality of your tomorrow now if you're new here I'm Mark and this is my wife Jody we don't focus on the financial aspects of retirement but rather lifestyle Health relationships and much more so if you like this please hit the Subscribe button and the notification button so you're going to get notified when our new videos come out and gosh it would really be great if you could share this with someone that you care about who's on their retirement Journey too you know we really want you to feel empowered and equipped to face the challenges of retirement with excitement and Clarity and our goal today really is to ignite a proactive approach for you that's that's going to lead you into this next phase of your life you know this is probably actually documented it is one of the biggest changes you're ever going to face in your life and therefore it can be challenging but today we're going to help you find a quick path to success so who do we know that did really well in this uh first part of retirement you know we have we have friends that live in Bronxville New York he had a big corporate job um was you know kind of all over the map all over the world she had her own things that she was doing and I think they've gotten a very successful jump start into their retirement with a couple of key areas that they focused on ahead of time and then they followed through with their plan well one of the things that he's doing is um he is still engaged in some Consulting so he works maybe 10 15 hours a week and you know what's funny Mark we got a lot of push back on the challenge you guys are doing this you're not really retired you're doing that you say people are doing other work they're not really retired I would agree with you so let's just throw the word retirement out yeah that's the thing yeah so what we are is in the next 30 years of our life and charting a new course and for him and for us this is part of what we do we spend 20 hours a week working on this YouTube channel and doing some Consulting and one-on-one coaching but this couple he's doing a little bit of work and she's very active in some nonprofits there's one particular where she's involved with a uh a charity that not a charity U they invest in startup businesses for women she's on the board of this organization so startup businesses started up by women started up by women not just for not big powerful things just women who are U some of them are pretty big and powerful yeah but I mean it's it's really I I didn't mean it that way wow it sounded that way well I didn't I didn't want it to sound like she's on the board of a Fortune 100 company she's a regular person who's helping this organization find women that want to start a business well I I think there's a couple key things and those are the ones that we're going to kind of pull out today some things that when we think of them we know they've done well so so they were they are very successful and we want the same opportunity for you too so let's what what are we going to what's the first tip we call it a tip right well I think um the first thing when you're addressing retirement even before you retire and we've all either started this thought about it done it you have to plan financially so I would say that's number one even though we don't do financial planning right so you need to figure out what your nest egg looks like how much money you have um if you have a pension you know what what that what does that look like coming in what are your obligations you still have a mortgage and a car payment you need to figure all that out and honestly we're big advocates for financial planners because having that outside perspective to give you a voice that's not so tied up emotionally into let's say the stock market which right now poorly um if you're doing all the investment yourself and looking at all you're just going to stress out all the time so having a financial adviser is great and I think just planning financially just at the basic route you know knowing knowing your income whatever that is knowing what you've saved knowing your expenses understanding any diversity of Investments that you have to make sure you're spreading your risk for long-term growth and wrap that all up with engage with a of some kind or even new retirement low we'll put the link below new retirement is a platform that you can buy you can test it for free you can buy it for $120 a year it's phenomenal we use it we have a lot of our clients that use it and it gives you a snapshot of all your finances and there's all sorts of tools in there you can use to uh do what ifs scenario planning really so first thing is planning financially is really really important the second thing that's important and this client we talked about was having a gradual wind down from your career if you have one you know just cold turkey ending it sometimes that's really hard for people and if that's what's going to happen then you certainly want to phase out any work commitments you have you don't want to leave a mess behind right so yeah and I and I think a big part of that phasing out or gradual wind down is starting to set your boundaries right ensuring a balance between what's your work and your personal time so that it's really clear to not only you but to the people that you're still dealing with and and if you're in a case in a situation where you do want to work a little bit you know maybe you can go back to your company and say hey I want to give you 5 hours a week 10 hours a week just something if you work mornings for two hours 5 days a week it gives you reason to get up gives you a little bit of money coming in and it keeps your community alive a little bit longer so you definitely want to see if that's an opportunity with your company absolutely and you know don't be afraid to delegate responsibilities right passing on tasks as you're doing your gradual wind down to people who are either taking your jobs or you know dividing your labor up or whatever it might be I would say that's something good to do and then spend a little bit of time in this gradual wind down reconnecting with your hobbies rediscovering all the passions that you may have put on hold during your career you know what funny we have so many clients that say I don't have any hobbies well because you've been working for so long or you've been involved with other things and if you've never had a you can find one just start you know we're big journalers so writing down what you're thinking about if you spend every morning journaling for five minutes on hobbies and Google what are the most popular hobbies and just start thinking you know what I when I was a kid I used to do that I might be interested in that don't be afraid to explore that and reconnect and try it because it could be that all of a sudden now you're really into I don't know what's a new hobby painting painting or you could clutter your house clean your closet give away all your clothes so so gradual wind down would be the second thing that we really see as a great retirement tip as you get started right the third thing is and I love this one is really taking time to engage in self-reflection you know understanding your identity beyond your work identity and understanding that you're more than your title or your job or your you know even your community at work you're more than that I I want to stay with this for a minute because this is one of the big risks that we all face or the big changes that we all face when we retired because you and I both had identities at work I own my own company I was the CEO and when that ends it's it's really hard to reinvent yourself with a new identity you know my dad struggled with that so much and we did it first and maybe you are too I don't know but you can't just spend the next 30 Years saying I used to do this and I used to to do that really peel back who you are as a human being and that's really your identity and from there you can build something new and I think as you're doing that it's really important to evaluate all your past achievements right it's not like we're saying abandon that and move forward you know really recognize and take pride in your career Journey whatever it was and then move move forward to Envision all the future accompl accomplishments that you could have you know retirement is going to offer you new opportunities you know we get comments a lot that people say Mark stopped interrupting Jody and I just I always respond to that saying we both get so passionate of what we're talking about that I do and I'm really trying hard because I almost just interrupted you I know I'll try hard too CU a l no need to leave that comment I own I I own it and I interrupt jod a lot because I just get so excited about it but you know engaging in this self-reflection you want to you know if you're struggling get get a counselor get a therapist there's nothing wrong with having a therapist and you share your feelings and apprehensions about this phase of life you can't just go through it and not deal with it so it's really important to do that all right what's the fourth thing well for us this is so important establishing a new routine and the reason this is so important and really not to interrupt you just did interrupt I know because I know I'm going to get a comment about that comment about Jody interrupting um it's not just a routine routine it's a new routine oh didn't I say you did but I really think we need to it's not just H they're back on routines this is your new routine well you just keep going with that then and I think it's really important so we have a routine during our career we have a routine if you're a stay-at-home mom or dad you've got a routine but when the other partner comes home or your career ends that routine is shock so you've got to find something that a daily structure you've got to fit in um exercise you've got to fit in some some learning you don't just want to spend 38 hours watching TV every week which is the average number of hours that people over the age of 65 watch TV you don't want to do that enroll in some courses do some workshops online classes volunteer right right and even travel you know and when we say travel you know a lot of you will say well it'd be nice to travel but I can't afford to Trav travel locally go a couple town over overs and explore a coffee shop cou Town overs a couple Towns over what's a couple Town overs a couple towns over is that not a good sent a couple Towns over and you know um just en enjoy and explore like new shops or new restaurants or a new coffee shop or something something local all right the last tip we want to talk about as you're entering retirement is find your fun you know this phase and we struggle here sometimes we always say what are we going to do fun today well we don't have time you have to make room for fun hobby uh joining a club we're pretty good with that we join the YMCA we've got your woman's group I have a men's group we have people with shared interest pickle ball friends um friends we go out to dinner with but you know golf so we want to make sure that we have fun we want to make sure that you have fun and the other part of fun really experimenting try something new or just relaxing and rejuvenating reading a book we never do that yeah we do self-care we do all right so that's important have your fun absolutely and we wanted to make sure we put fun in there because it's not all planning it's not all schedules it's not all routines it's not all our way no this is your time to do it your way and find joy in Simple Pleasures put some structure in it but also have fun cuz this can be a challenging time and it's going to take some getting used to and you want to enter retirement you know this is the beginning of the greatest phase of your life you know try these five tips to begin your retirement with a little hard work but also some fun now if you like this video you're going to like this next one the top five struggles in retirement we talk about loss of community filling your extra time and creating a vision for this phase of life so we'll see you back again soon
Gold IRA’s Are Safe: Your Gold Questions Answered
Jason 0 Comments Retire Wealthy Retirement Planning
When you're planning for your golden years, there's one word you want to associate with your future. Safe, as such you should know why gold IRA's can be safe from setup, storage and hedge standpoints. When you set up a gold IRA it's done through what's known as a self directed IRA, a type of IRA that enables you to purchase traditional assets, as well as alternative assets such as precious metals. You can transfer or roll-over funds from one of your retirement accounts to a gold IRA. Or you can open a new Self-Directed IRA to house physical gold. In either case an IRS approved custodian must purchase the gold. IRA custodian's must adhere to IRS guidelines, when holding assets belonging to their clients. Meaning you can enjoy piece of mind about the proper handling of your gold transactions. When you work through U.S.
Money Reserve's Self-Directed precious metals IRA program, your IRA account executive will coordinate with your custodian to setup your IRA account. Once an IRA custodian buys gold on your behalf, it is stored in an IRS approved depository or a federally regulated bank or credit union. All of which have expertise when it comes to safely storing gold and other precious metals. If the inflation rate climbs, traditional inflation hedges, like gold commodities and real estate, are likely to out preform other mainstream financial assets. Therefore, a gold IRA can be a safe haven when it comes to inflation and a useful part of reducing overall risk. Call U.S. Money Reserve to learn more about the safety often associated with gold IRA's. Click the link in the description to download your free gold information kit. Which will provide you with important information you should know, about diversifying your portfolio with precious metals..
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Retirement Planning for Singles
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Retirement is a big deal for anybody, and that's especially true for single people who may be retiring with just one income and who may have built up a nest egg solely off their own savings. So, we know that single people can and do retire comfortably. In fact, one quarter of people over age 60 are living alone in their household, and that number is slightly higher for women, and that's, of course, due to women's longevity. So what we're going to talk about here is retirement for single people. First, we'll go over some averages to give you a rough idea of what the landscape looks like for single people, then we'll get into how much money you might need as you go into retirement, then we'll talk about some tips that can help improve the chances of retiring comfortably.
Let's start with the average retirement income for single people. So it's $42,000 on average for an individual in retirement, and that comes from the US Census Bureau. The median is a little bit lower at $27,000. So a friendly reminder of how this works: The median is the middle, so if you line up all of the survey results, people telling you what their income is, for example, that arrow points at the middle observation, which would give us the median down at the bottom. But if we go to the average, that is going to get skewed by, in this case, wealthy people, for example, they have a very high income. When it comes to Social Security, the average is about $1,500 a month or $18,000 per year.Your level depends, of course on your earnings, if you had higher earnings during your working years, then you tend to potentially have a bigger benefit than that, and it could be lower, and then of course, your claiming age is also an important thing.
If you claim early at age 62, you get a reduced benefit. That's likely to bring down the amount you get. Next, we have pensions, some people get an income from a job they worked at. That might be in the public sector as a teacher, a firefighter, that sort of thing, or even in the private sector, you could have a pension from your job, and those incomes just are all over the board, it could be high, it could be low, but these are different sources of income that people might have in retirement.
This is just a friendly reminder that this is just one video and it may cover some interesting information, but it's not specific to you so I hope you'll do a lot more research, hopefully check with some professionals and get some individualized advice, and that way you can improve the chances of things going well for you. So now let's talk about how much you might need as you go into retirement. Unfortunately, there's no single answer on what you need because it depends. So the first step is to figure out what sort of income you're going to need, and I've got other videos on that, I'll put links in the description to get you some more information, but you can look at replacing a portion of your income, or you can just say, I want X amount of dollars per year, or you can go with other approaches, but first we need to know how much income you are hoping for. Next, we tally up your income sources, so that might be some guaranteed income that comes in from Social Security, for example, or from your pension at your workplace, but that forms a base of income and that might or might not cover what you need.
But it gives us a base and then if we need to fill that in, we can supplement withdrawals from your retirement savings, so that might be out of your IRA, your 401, 403, these accounts that you have built up over time can provide supplemental income to help fill the gap between that guaranteed income you get and the amount you actually want to spend. There are a number of ways to figure out how much to withdraw and to set up different strategies, there might be bucking strategies, there might be withdrawal strategies like the 4% rule. Or if you don't like that, make it the 3% rule to be safer, or take out more if you think that's not enough and you're selling yourself short. Ultimately, there are a number of ways to approach this, so you just pick one that works well for you, and again, I can point you to some resources on figuring that out. And finally, you will want to look at taxes and inflation, so during your retirement years, it's reasonable to assume that prices may increase on many of the things you buy, so we want your income to be able to increase as well, Social Security typically does rise, but maybe not at the same rate as the things you're buying, so your withdrawals may need to account for that.
Plus we've got taxes. You typically will owe taxes if you're taking distributions or you're taking withdrawals from pre tax retirement accounts. If you have a pension that might be taxable as well. We just want to look at all of these things and figure out what your ultimate money left over to spend each month is going to be. For an over simplified example, let's just look at Jane Doe. She's 60 years old, she's single, she wants to retire in about five years, she makes about 80,000 a year and has 700,000. A lot of people retire with less than that, a lot of people retire with more. I'm going to bring up my financial planning software that I use with clients, and we'll just go over kind of why there's no single answer on how much you need. Now, if you can tell me exactly how long you'll live and what the markets will do and what inflation will look like, we can tell you exactly what you'll need.
But there are a lot of unknowns, so a lot of times we start with a probability of success and I'll go over what that means, and then we look at little tweaks and how different changes might affect that probability of success, so working an extra year might bring her from… Let's say 75% to 84% likely to succeed. Now, success and failure are pretty complicated. They don't necessarily mean that you go completely broke, but you may need to make some adjustments, so let's talk about what does the success mean? We, again, cannot predict the future, so we say, Let's look back and say, You get dealt 1,000 hands.
You're playing a game of cards and you get 1,000 hands. Some of those are good and some of those are bad, so the very good ones tend to be up here, near the top. And you actually end up with a lot of money left over. Some of them are not as good and you end up running out of money early. The median is, again, that one that's right in the middle when we line them up in order for best to worst. And so you might say, you're probably not going to get the best, you're probably not going to get the worst, although anything is possible. So that's how we go with this likelihood of success. Now, maybe she doesn't want to work an extra year, so we can look at different ways of accomplishing things here. By the way, we've built in some long term care in case she does get sick and needs that at the end of life.
She's looking to spend about 4,000 a month, that's after some health care costs that are going to inflate each year, and she's saving a decent amount in some 401K and taxable accounts. Let's say she goes ahead and maxes out that Roth, is it going to make a big difference? Not really, 'cause she only has five years left. So what we do here is we start looking at all of these different variables and playing with the pieces and figuring out what does it take to make her successful at her retirement, or at least successful enough that she's comfortable making that transition. So here are some tips to improve your chances. The first is to plan for long term care. If you're living on your own, you don't have somebody in the house who can help you do things, and it's arguable if even a couple is capable of managing this on their own…
I mean, if you think about a couple, is one of the people physically able to move the other person around and do they have the skills to provide health care, and the time and the energy, frankly, to provide all that type of care? So it's important for everybody, but it's especially important for single people to plan for this care. So you can look at getting insurance, you can look at budgeting for some costs, like we showed you in the software, you might want to budget for a much bigger number if you go into memory care or something like that with 24 hour supervision, it can get really expensive quickly. And you can explore different living arrangements, maybe doing things with friends or certain communities that might be a good fit for you. Next is to avoid leaving money on the table so if you were previously married and your spouse passed away or you've been divorced, you may be eligible for benefits. That's maybe from Social Security, you can potentially get a survivor's benefit, or if you were married for at least 10 years and you've been divorced, you can potentially get spousal benefits on your ex spouse's work record.
It's just important to explore all of these to see if there are any resources available for you. Next is to make a plan, and I am of course biased as a financial planner, but I think it is really helpful to go through the process, and the main goal isn't to get a big document that tells you what your financial plan is. Instead, really, the benefit is going through that process and learning a lot about your finances as you do it, and in that process, you get an idea of what the risks are, how you're doing, you might get confidence and clarity on whether or not you can go ahead and retire, if you should do certain things or not. It's just a very valuable process for a lot of people, but I'll leave that for you to decide.
If you found this video helpful, please leave a quick thumbs up. That gives me feedback that this is something you might enjoy more of, so thanks for watching and take care..
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Wealth Creation Course: How To Invest In Gold Like The Top 1% | Jerry Fetta
Jason 0 Comments Retire Wealthy Retirement Planning
Alright, welcome to our FinanceFriday weekly course. I'm Jerry Feda, the owner, founder, CEO of Wealth Dynamics and I'm coming to you live as I've done every Friday and I've been doing this course actually four years on the. Okay, so four years ago, Friday, today, was the first time I ever did a finance Friday course. Isn't that cool? So, we've been doing this every week since then but the goal of this course, if you're just tuning in, the goal of this course is to spread financial literacy. Okay, the goal is to help you understand the truth about money, to be able to apply it in your life, to be able to build wealth and financial freedom, and so when I first started doing these, that wasn't something that really existed for me as a kid growing up, as a entrepreneur, as a business owner, that wasn't something that I naturally had access to, right? And so, as I started learning more and more about finances, I was like, man, more people need to know these.
So, my company, what we do is we help families, individuals, entrepreneurs, business owners, it doesn't matter, we don't care what shape, skin color, size, country income, whatever. We're going to help you. We want to help you learn about finances and and improve your life financially, right? So, we're going to talk tonight about gold and silver and how to buy those the right way, how to buy those like the top 1% by them. Um and it's something that I've been doing for for several years now. Before I dive into it, some things I hit every week I'm going to cover really quickly.
First thing is I want you to make sure you got a reason for being here tonight. Okay? What is your purpose for being here? Right? We're talking about gold and silver on a Friday night. It's 10 PM on the East Coast. Like you gotta have better things you're going to be doing with your time. Why are you here? Okay and if you don't have a reason, you might as well not be here. You might as not well not be watching. So, what made you come onto this webinar tonight and if you don't have that, I want you to pick that. If you do have that, I want you to look at it really quick. Make sure you've got it. Friend of mine as we go through this. Second thing is, I want you to get rid of the idea that this can't be learned about.
That money is complicated, finances are too hard. Guys, it's all just basic math and vocabulary. So, if you can add, subtract, multiply, divide, and use a dictionary. You can finances. right? The only time finances become complicated are when banks on Wall Street get involved in financial institutions get involved and they add these million dollar words on top of basic mathematical concepts so that we feel like we need them. Right? That's a manufactured process. That's not really how money works.
The wealthy people that I know, they speak about money like they're five years old. Simplest concepts in the world, right? So, I want you to get rid of the idea that money is hard. It is just basic math and vocabular on that note, if I go over anything tonight that doesn't make sense to you, I want you to ask me right away. Okay, you can ask me in the chat, you can ask me in the comment, if you're watching the replay, still ask. We'll answer the comments on YouTube and Facebook and wherever after the fact, we'll still help you out. So, make sure that you're asking questions. We will go live throughout and answer your questions. If you're on Zoom, if you've got the microphone, we'll mic up and we'll talk, right? So, we'll go over your questions live on Zoom.
Second thing is, you've gotta get rid of the idea that you know it all already I can't learn something if I don't think there's anything for me to learn. Right? Nobody likes to know it all. Okay and there's no such thing as a know it all. The reason why nobody likes a know it all is because nobody likes a liar. I know it all is a liar. There's no such thing as somebody that knows everything. And anyone that tells themselves that is foolish **** Right? And I know that's not you guys. So we gotta get rid of the idea that I know this all already. I've heard this already. You know repetition is is where certainty comes from. The more times I do something the better at it I become. Okay so then might be part of that for you tonight. If you're brand new, this is probably going to be information you've probably never heard before. If you're a client, this might be a spin on it that you've never heard before, right? Okay, and then the final thing is I want you to think about how am I going to apply the information here tonight, right? I'm a producer, not a consumer.
Right? So, I'm here tonight to get information, not just to get mentally obese, and, and, and consume but never use, right? But for me to actually use and apply the information, to burn it off as fast as I can, as soon as I can to use it and put it to work, right? So I want you to think about that as we're going through this, okay? So, I want to talk about and silver. Now, this course is not going to be about why you should buy gold and silver.
I've done that course already and and I'll just quickly in a few sentences, I'll tell you why. Number one, it's the oldest, most reliable store of value known to mankind. Gold has been around for 6000 years. It's been valuable to mankind for 6000 years. Um we still use it today for banking, investing, all sorts of things. You can't say that about any other store of value.
Right? Especially when it's versatile as gold. It doesn't expire. You can you can sort the gold that we have today. It's the same gold they had 6000 years ago. Right? You can't say that about oil. You can't say that about anything. Okay so so that's one of the big reasons we use gold. The second thing is it's literally the most useful metal on the planet.
Right? If you're watching this on an iPhone your iPhone wouldn't work without gold. Every iPhone has gold in it. Right? If you have if you have internet connection. That satellite up in outer space that that that they use for that type of thing wouldn't be up there if it wasn't for gold. Gold is used in aerospace. It's used in electronics. It's used in technology. It's used in dental. It's used in so many it's the most useful metal on the planet. Okay? Not only that, it's used in banking. Our United States Federal Reserve Bank currently owns half a trillion dollars worth of gold. They're the number one owner of gold on the planet. Number one issuer of debt and number one owner of gold. Want you to think about that? Right? We and and right now the statistic is only 12% of Americans own any gold at all.
So it's not even like like most people have a little bit. No no no. Only 12% have any at all. Right? So, we're talking about the oldest store of value, the most valuable and useful metal on on the planet and something that, that, that, you know, the, the number one owner of it is the Federal, the Federal Reserve Bank of the United States of America, okay? So, like I said, I'm not going to go into tonight on why we should own gold. I'm going to talk about how? What are the mechanics? Okay, what are the things you should know? I bought my first silver back in 2016. Okay, I actually bought it from Matt on this webinar. Okay, from, from Mint Builder. Back then, it was called a different company but that's where I bought my first silver.
Okay, and then I started buying gold. So, this was back in 2016. It's now twenty twenty-two. That was what is that? Six years ago? Right? So, I've been buying gold and silver for 6 years. Now, when I first started buying it, one of the things that I was confused about is what should I be buying? Okay, and I'm going to some of these things out tonight. I remember one of the first conversations that I ever had with somebody about gold. It was from one of my mentors and he said, hey, when you're buying gold and silver, there's two different kinds, okay? And I'm going to sketch this out on the screen. So, the first thing I want to teach you about gold and silver tonight and how to buy it is you have two different sides of the house. You have what's called bouillon. and you have what's called numismatic Num Numesmatic. Okay? Now, one of my mentors when I first started, he told me one of the most helpful things in the world.
He said, there's a difference. There's this stuff called Buy an and there's this stuff called pneumismatic, okay? He said, numismatic is gold and silver in the form of art. Okay, collectible coins, commemorative pieces, things that are rare and and they have a value to them, not just the gold and silver but the art value of them. Right? So, there's like the and he said then there's also buoyan. This is literally just pure metal.
Nothing special about it. You're literally just buying the the gold because it is point nine nine nine pure. Right? It's ninety-nine point ninenine nine% pure gold. There's no collector's value. It's not special. There's nothing great about it. It's not rare. It's not unique. Right? Same same gold you get. Excuse me. Same gold you get anywhere. So he told me and this was something that I learned earlier and he told me when I first started I didn't know the difference. So I thought I was buying booyan but I was actually buying pneumismatic. And so you know For those of you that are are in the gold and silver, new mismatic typically is going to be a higher initial price. Okay, and the reason why is you're paying for not only the bullion, you're paying also for the significance of the art, right? For the, the, you know, the significance of it, for the rarity of it, right? Whatever those unique factors are that make it commemorative or a collector's item.
So, you're paying for that in addition. The medal, you're only paying for the medal. So, he didn't know the difference between the two, someone told them, go buy gold, go buy silver. So, he went to a coin shop and the guy was like, well, buy these and the reason why is you could sell them at a higher price, okay? So, my my mentor at the time, he was like, you know, I I didn't know this, not to say pneumismatic is bad, but when I went to go sell it, I was selling it in the new mismatic market, and I didn't know that. So, he was buying what he thought was buoyan, but really it was a new mismatic. It was a collector's piece. He was selling what he also still thought was Buy in, but really it was a new mismatic.
So when you do numismatic, you're paying a bit more to get in, right? And then you're also going to sell it for a little bit more because it has the potential to be more important, more significant, etcetera. He didn't know that. So, he bought an expensive coin and then he sold it at the cost of bullion because he was selling it at I would say that this middle category looks like this. right? So, the middle category, let's say this is down here. This is like minted, right? And when I say minted, technically, yes, all of it's minted but I'm saying buying it from the United States Mint, buying it from the Canadian mint, buying it from, it's not numismatic, but it almost is.
Right? Cuz I could go to like, for, for example, if I'm buying bullion, I could go buy silver coins, silver rounds from Sunshine Mint. They're not government regulated, they're not, they're not housed by a country, it's a private mint. Now, they still sell good product. It's still pure. It's legitimate but because it's not the United States man and it's not a US Silver Eagle. I'm not paying the premium for it. You see that? So this is pure buoyan.
Then we have numismatic and then we have specially minted which is kind of in the middle. I'm going to pay more for a silver eagle even though it is just a piece of silver. It's created by the United States men. I'm paying for the brand. I'm going to pay more for Canadian maple leaves. Why? Because I'm paying for the brand. Okay so when I first got involved I didn't know these things either. Right? And so a lot Luckily, you know, I I got hooked up with Matt and Mint Builder and so he, you know, I got directed immediately, okay, this is Booie and you want Booyan. They sell newismatic but they were clear like, this is numismatic. You know, and so you, if you want to do the collector thing, you get the new asthmatic. If not, you do the bullion or there's the minted stuff. And so, I learned this upfront but those are the three categories you need to know about first if you're buying precious metals.
Now, the purpose of buying precious metals, the purpose of it is to store value. Okay, so the number one thing you need to know as a a precious metals purchaser is this is not an investment. Okay, it's not investment. it's not going to pay you an income. It's not something that you you buy like a stock or or a piece of real estate and you trade it around. It's a store of value. Okay, the reason why people ever first started using gold is they were sick of bartering. So, they needed a medium of exchange that would retain its value that everyone agreed upon was valuable. If you take gold to the the Amazon Desert or the Amazon Jungle right now and you show it to someone down there that's never seen it before, they're immediately going to see that it's valuable. we just know, right? You look all the way back at at Pharaoh's. They collected gold.
You look at kings, they collected gold. Everyone has always agreed on the value of gold, right? So, even today, like if it wasn't valuable, why does the Fen have half a trillion dollars in it? Why? Why is Russia loading up right now, right? So, everyone agreed it was valuable. Think about this. Everyone liked it. Everyone used it. Everyone that was willing to accept it. It didn't expire. You couldn't create more of it. Still true to this day. Like, it's the medium of exchange. And so because of this, that was the purpose of gold. I produce wheat when I go to the market. I don't want the wheat to expire. I'm going to trade it for gold. Right? And then when I go to the market, I've got gold.
I can go buy everything with the gold. Anyone that I talk to will want the gold. Right? Instead of the the coincidence of needs. If I bring the wheat to the market, I'm only going to be able to get a deal if you want wheat. If you don't want wheat, I'm out of luck. I need to go home with my wheat and hope that I can use it before it all goes bad. Right? So got rid of that because I could just take the gold and everyone was willing to have it. right? So, so that's what it is. It's a store of value. It's something I buy. I keep for the period of time that I'm going to keep it for and then I I put it to use. So, either exchange out of it, we'll talk tonight about being able to borrow against it, being able to lease it out for income.
There's a lot of things you can do with it but it's not an investment, okay? It's a store of value, okay? So, I want to I want to drill this in. Now, here's the process I want to go through. I'm going to just draw this out. Now, when we're buying gold. Um it's important to know where it comes from, right? So, I'm going to clear my screen here and just kind of type this sequence out. So, the first thing is gold gets mined, right? It gets mined out of the ground, okay? And so, people will dig for it. They'll, that's, you know, I'm from Alaska, the the Alaskan Gold Rush, the Klondike, right? Everyone found out Alaska had gold and they're like, man, that's when back when when gold was the the Bitcoin of the day, everyone's like, man, I'm going to get rich mining gold.
Most people didn very few did, right? But everyone rushed up and they mined it. Today, people still mine gold. So, this is where it comes from. Now, you have to realize when gold gets pulled out of the ground, it's in a bunch of rocks and dirt and residue and other metals, right? So, a miner, when they pull gold out of the ground, they're going to pull it out and they're going to sell it to a refiner. Okay? Now, you have to realize, I'm just going to change this to minor. We'll just go with the titles here. You have to realize that every time someone touches gold in the in the sequence of it going from its destination into the hands of you and I, the purchasers of it, the ones that are in a store of value in it.
Every time someone gets involved, it increases the price. Okay, no different than anything. Like, when you buy your your food at Costco, there was a bunch of middlemen that touched it before it ended up on the shelves at Costco. And the more middleman there are, the more costs you pay, because each one of those guys has to get paid for touching it, for being involved.
So, the mind they dig it at the ground. They have their cost. They want to make profit. They sell it to a refiner and they sell it at a profit. Okay, so the refiner pays more for the gold than the miner actually put into it so that the miners can be profitable. The refiners, what do they do? The refiners, they basically are refined. They purify. They get all of the other metals and dirt and and additives out so that there is just pure gold, okay? Now, they're just going to get it in in bricks. They're just going to get to the point where it's refined.
It's in these giant bricks. They're going to sell it, okay? The refiner is typical going to sell it to a mint, okay? Now, what does a mint do? A mint takes this giant brick and they turn it into little bars and rounds and coins and one ounces and ten ounces and five grams and all of these different things. Now, they also certify the purity of it. They use something called an assay for this. They certify the purity of it, the weight of it, and make sure that it meets market standards, okay? So, the mint buys from the refiner and they mince the gold like when you mint the coin, you're stamping it, you're putting your little logo on it, you're creating, you know, the coin that's the perfect circle and the perfect weight and it's got the perfect blend of material So, that's what happens at the minute.
Now, when the refiner sells it to the mint, the refiner also sells for a profit right? So, the mint pays more for the gold than the refiner paid. The refiner pays more for the gold than the miner paid. Tracking so far, each one of these guys brought the price up. Okay, what is the the mints do? Okay, the mint sells to a wholesaler. Right? So, this is another group. So, mints don't sell the consumers. When you guys are watching the gold market, who's ever seen the the it's called Spot when you see the pricing and it's called Spot Price, okay? The only ones that buy a spot is the mint. Right? The mint is paying spot. They're they're paying literally just the value of the month because that's all it costs them, right? Now, when a wholesaler buys it, they're going to pay more for the gold than the mint pin.
The mint is not going to sell the gold to a wholesaler at a loss. They're going to make money on the deal, right? So, the mint charges a little bit more. The wholesaler is required to buy gold in volume, right? So, for example, in the US Mint, I think the minimum to buy silver, I think is like a five-million-dollar minimum. They're not going to sell you silver eagles as a wholesaler if you're not going to spend that much money. That's how the mint makes the money because there's these thin, little, razor-thin margins on it. So, they're going to sell a bunch of it. They want to sell gigantic amounts. So, these wholesalers, they have requirements on how much volume they're going to purchase, okay? Now, the wholesaler when they buy it, they're going to sell it, typically to a distributor, okay, a distributor is typically going to sell it to a broker or a dealer, and then the broker or is going to sell it to a end buyer.
All these guys make money, right? So, the mint, they charge a little bit. The miner, they charge a little bit, right? The the refiner, they charge a little bit. The wholesale that they charge a little bit. The distributor, they charge a little bit. The broker, they charge a little bit, then the end buyer, they pay everyone's charge. That's why when you buy gold, you're not paying spot. You're paying spot plus one or two, or three, or four, or 5% on top of that. So, this is a, this is where gold pricing comes in. So, when I was buying, I was the end buyer and, and I would even I would even go further than this. I would say there's maybe even another step. Oftentimes, there might be a retailer, right? A retailer might buy from a broker.
You go to a coin shop, like a a physical location. A lot of times, they're buying from a broker, okay? So, if I'm paying retail, I'm literally buying the most expensive gold and silver that I can buy. Why? Because all of these people had to take a fee. Okay? Now, before we get into the fee thing, let me let me stop my screen share. Before we get into the the fee thing, and again, if you guys have Questions, dropping them in the chat. We'll answer questions periodically here.
Before we get into the fee thing, this is not a rant about never pay fees, okay? Never pay fees if you're not getting value. If you're getting value, great. Like the fee is is equal to the value you're getting? Awesome. Okay? So, so that's something I'm okay with. Now, I'm not okay for with paying a fee where I don't get anything. Nobody likes that. Right? So, so when I pay a fee, I want to make sure, okay, I'm getting value and so if I buy gold from a retailer or from a broker and they're charging a fee, other than the commodity of gold that I can buy anywhere on the planet. What else am I getting? That's what I'm asking myself. Because gold literally is a commodity. A commodity means it's the same across the board.
Everyone is going to have the same price. Everyone's got the same thing. And so if you're more expensive it's like why am I paying you more? Right? So that's what I'm looking at. So this is not poverty mode. Never pay fees. you know, screw profit. Everyone should lose money in business. No, this is not that. Right? That's stupid. Right? This is if you're going to pay a know what it's for and know what you're getting in in value and benefit, okay? So, I want to answer some questions really quick.
By the way, if you're on this webinar live, you're probably going to get reached out to from Nano. Nano works on my team. He's our our client acquisition manager. So, he's reaching out to connect with you, answer questions with you. One of the things that he'll discuss with you is my book, Blueprint to Financial Freedom. So, if you've not read this, this is a fantastic step-by-step pathway on, okay, how do I build wealth? Where do I start? Where do I go from from point A to point B. There's an entire chapter in here on gold by the way. Okay, so Nano is probably reaching out to you. Um if you would like to get a copy of this book, Nano can get it to you. He can also get you a free consultation and help you get through the book as well which is awesome. So, I want to open this up for some questions really quick. first one is from Mark. Let me bring Mark on live.
So we got a question from Mark Perry here. Alright, we should be live with Mark. How are you today, Mark? Hey, Jerry. How was nice to hear your voice on these trainings on Friday. I look forward to it every week. Uh my question is in regarding to gold and silver bullion bars. And I I've been noticing a lot more that the brand that that mince the bars. Is it big disparity in prices according to the brand and I'm I'm not sure why there is and it doesn't even matter when when purchasing if you know one brand versus the other and and why it's such a big price difference when buying bars especially in big amounts like 00 ounce silver bars or ten ounce gold bars. Yeah that's a really good question Mark. And I I saw the same thing. So when I first started buying gold and silver while Marcus saying is you'll see different brands right? Um so for example you know what what's one of them? Like like Pam Swe PAMP Suites like Pamp Swiss. They're going to be maybe a little bit more expensive and it it literally in most of these cases, I'm not going to say all of them.
In most of these cases, it literally does just come down to the brand, right? They're selling the same one ounce of gold. It's the same purity. They're just saying, you know, we're we're the Gucci of gold. You're going to pay more because of our brand. You're going to pay more because you know, you're doing business with us. So, that's that's really where that comes in. As long as you're buying from legitim and reputable, you know, dealers, and this is where it comes down to who you're buying from, because they, they can counterfeit. There can be false, you know, fake gold and silver. So, if you're buying from a, you know, a pawnshop and it's like, man, I could get that really cheap piece over there. There's a chance it could be fake, right? And the way that they do fake gold is they'll actually use tungsten.
It's a very cheap metal and they'll just coat it in gold and you'll have no idea, right? You'll think it's gold. Now, if you peel the gold coating off, you'll find out it's just tungsten, right? So, When you're working with a dealer, you want to make sure that that is a dealer that you know is reputable because the dealer is the one that needs to inspect for quality that they're not giving you bunk product and that you're getting something good. Now, if all of that's the same, then, go with the cheap stuff, right? I have a my buddy, Matt is on. So, Matt owns Mint Builder and we have an ongoing joke that that he goes for the cheapest like when he's looking to sell bullying to clients, he looks like, okay, what's the cheapest price we can get? Sometimes, they'll send out Christmas bullion, right? Like it's a gold coin and got a little Christmas decoration on it. Still point99 nine pure.
One ounce of gold, like one gram. Same everything. But because it's a Christmas decoration and it's like not the sexiest thing in the world. Right? Like it's cheaper. And that's simply because the aesthetic of it and it doesn't have the collector's value. I want the damaged stuff. I want the scratch stuff. I want the Christmas coins. I want the stuff that's got a little bit of that that brown residue because it got oxidized.
Because that's the cheap stuff. And at the end of the day it all melts down to one ounce and it's still point nine nine nine pu and so as long as I know that about it, then, I don't care who it's from. Now, Mark asked another question which is a good question about denominations. He said, you know, if you buy bigger bars, it gets cheaper, That actually goes back to, I want to go back to my my little drawing here. That actually goes back to the mint, right? So, if you think about when when a mint buys like, you know, a 400 ounce bar of gold from a refiner or one hundred ounce bar gold from a refiner and they're like, okay, we're going to cut this up. We're going to melt it down and chop in the product. The smaller pieces they're making, the more money it costs, right? Because it's more, it's more doing this. They've gotta chop it up into more, it takes more resources, it takes more machinery, and so, when you buy like a one gram or a five gram, that piece of gold is going to cost more per gram than buying a, you know, ten ounce bar and the reason why is that ten ounce bar doesn't take as much, as much resource to make.
It's a larger cut, and so they, they can do it quicker, and it's a lot less work, and it's a lot less money for them, right? So, that's one of the tricks of the trade that we'll get into is how do you buy the right denominations? By denominations, I mean the right amount of ounces. Okay, if I buy more ounces, I'm going to save more money and it's not just more ounces like like if I buy ten, one ounce bars instead of twenty, it's it's if I could buy A 20-ounce single bar. Instead instead of 21 ounce bars. That single bar, that twenty ounce single bar is going to give me a lower overall price because it cost them less to manufacture it. So, that's an excellent question for Mark And that's that's a seasoned question. You can tell Mark is a a gold and silver guy. Um just by knowing to ask that question. Good question from Mark there.
Let me see what else we have in the chat before we jump back into this. Good to see everyone on tonight Looks like some good good communication going on with Nano. Um and it looks like Matt actually has more of a comment. Let me bring Matt on really quick. Hey, Matt. What's up? Hey, hey. Yeah, I know I was just making a comment about, you know, when he was, that was a really good question he had. You know, he was talking about the, you know, the the bullying, higher prices, and this has been something in the last 15 years that we've dealt with as a wholesaler and that is that, you know, should I pay premiums especially when it comes to government minute versus private minute. You know, I feel like I can trust the government more than I can trust the private minson and you know, it really does come down to what are you looking for but I think what you, I think you covered it pretty good but just an example the the Gold American Eagle is literally only ninety-one point I think six 7% Yeah.
Gold versus the private man. We there's tons of highly reputable you know private mens you can trust and they're like 9-9. 9 or 9nine pointnine nine percent pure gold. So for me personally I'd I'd be going for for that versus just to be able to pay that higher premium. Same with silver. The the Silver American Eagle. Uh you know right now the premiums are skyrocketing. You're you're talking like sixteens you know dollars over spot for an ounce of silver just so you can get you know, an American Silver Eagle. Well, that kind of starts to lean towards more towards the new Mismatic side. We were talking earlier. So, yeah. Yeah, that's a good comment. Um and and actually, Matt's, Matt's totally right on the Silver Eagle and the American Eagle. So, what Matt was saying with that is, when you buy a a gold eagle from the US Mint, you're only actually getting about ninety-one, 92% actual gold. The rest of it's alloyed in with other metals versus, you know, buy like a if you bought one ounce of gold like from us for example where it's like you know Valkambi or it's one of these other brands.
Sure it's not US men but you're you actually are getting 99. 99% gold. You're getting more gold than you actually get at the US Mint. So it's starting to become more of a collector's item of commemorative piece. Um and and so that's that's something especially in twenty twenty. We saw the US mayor really get you know hit. They started to go by the wayside as far as quality, purity, speed, all of those things that matter when buying bullion. So, good point from Matt there. Let me see if we have any other questions here before we jump into the next part of this. Good. I think that that's all the questions right now and again, if you have more questions, go ahead and drop those in the the chat Uh Mark adds, I noticed that the more attractive bars are are sold at a higher premium than the non-attractive, Asahi, Englehard.
Yeah, exactly. Um Mark, you want the ugly stuff? You want, you want the the red-headed stepchild of the litter because at the end of the day, like, if you're buying it as a store of value, it's not jewelry, it's not collectors, it's kind of like we talked about with the lending last week, like if I am buying a a home that I know I'm going to sell or finance out, I don't care that it's not pretty. I'm not going to live there, it's not mine I'm not I'm not the landlord. It's I don't have any pride of ownership. It's literally just an interest payment, right? And so, same thing with gold, it's just a commodity. It's something that I'm just looking at. Where can I get the, the best deal for the right premium, for the right product, and also, there's other factors we'll jump into as well.
Justice as I'm improving my situation by watching FinanceFriday while making adjustments to my Glock 19 and Bergara 6. 5 Creedmoor basic dude stuff. Those those are the other kind of precious metals Justin. Um that's Justin on on our Facebook, our Facebook feed. Um good. So, let me jump into the next part of this. So, we're talking about how do we, how do we get the best pricing, right? So, I was buying here. I was an end buyer, right? And I was buying from retailers and I was buying from brokers and when you buy from a retailer, you're typically going to pay 3 to five percent more than than market.
If you buy it from a broker, you're going to pay about market, mean all brokers pretty much are going to be the same. Like you're you're arguing over half a percent better on one versus the other, right? So, at the time, I was like, man, how do I buy cheaper gold? You know, how do I buy cheaper gold? I was storing it at home so it wasn't like I had all these storage costs. I wasn't really going to sell any of it. So, I was like, I need to figure out how do I get a lower entry price, okay? So, what I did is I bypassed the broker, the retailer, the dealer, and the distributor. I got rid of these guys. And became a wholesaler. Okay, I started buying at wholesale pricing, right? And and so, what this does for me is it saves me, you know, one, two, three, 4% on the purchase versus what I had been paying at, right? Because I know that gold is going to make, you know, what, 8 to 10% per year over the long haul.
That's what it's done but if I can save, you know, one to maybe 3% in fees on purchasing it because I don't have to pay the distributor to touch it. I don't have to pay a broker to touch it. I don't have to pay a retailer to touch it and I can just bypass them and get the same price that the wholesal are paying. Like when a wholesaler buys it from a mint, they're paying a little bit more than Spot. They're paying, you know, like, like for example, ounce a gold, right? An ounce of gold, they might pay 30, 40, $50 over spot. Versus retail, you might pay like 2% over a spot, which is a lot more, right? So, I want to look at how can I get wholesale pricing.
So, that's what I ended up doing and so I I did that actually through, it's funny that Matt's on the webinar, through Matt's company, Mint Builder. Okay, so what this is, is basically, the way that you do this, is it's a membership right? So, it's a membership. Just like for me to be a wholesaler in the industry, it's a membership. It costs money. I have to go through an application process.
I have to get approved. So, what Matt's company does, what my company does is we took our wholesale status 'cuz we actually are buoyant wholesalers. We're in the buoyant industry. We buy from, you know, wholesale connections, mints, like all these different relationships. So, we're able to get the best pricing and we basically said, pay us a membership and we'll pass our pricing through to you, right? Like, you can go into our shop, you can pay the same thing we would pay, and, and you're going to be able to get the best pricing, and so that saves me that one to 3 percent on the front Right? That's a big deal, right? Because here's the thing is before I was doing this, I was trying to shop around and get the cheapest thing and I talked about this a couple weeks before, right? I was trying to shop around and get the cheapest thing.
Well, when I'm shopping around a bunch of different online dealers, like I said, they're all like, you know, five bucks, 10 bucks, 15 bucks, 20 bucks, a difference. And so, if I'm spending hours and hours and hours and hours and hours trying to find the best deal to save $20 on an ounce of gold, like, that's not worth my time, and so I found myself getting caught up in that as a gold buyer, I was spending a lot of time trying to find the best deal on this and that, and then I would be like, man, I just spent an hour and I saved 20. I might as well be delivering pizza again, right? Like, that's the equivalent of what was happening. So, what I do now is I just have a membership. I pay my monthly membership and I go into my wholesale shop and and I basically, I just go in and I buy whatever I want to buy and I pay wholesale pricing.
Right? So, that's the first component of this. Like, you want to obviously understand precious metals and then, you want to be able to buy at the very best pricing. These are the first two points of being a gold and silver purchaser, right? So, if I'm buying a store value, I want to know how it works. I want the education, I want the information, I want the connections, and then, I want the best introductory pricing the best purchase price, okay? Now, the other aspect of this is, okay, well, I've bought it.
Now, what? Right? Now, what? And so, when I buy it, I have to store it. It's not digital. It's not a piece of paper that goes into, you know, some some custody company in New York and they never give it to me. No, no, they're going to send it to me and I'm going to store it or they're going to send it to a vault for me and I'm going to store it there and I'll pay for storage.
So, gold appreciates, meaning it can go up in price. Later on, it can sell at a profit but it does not pay me an income and this is this is why I say it's not an investment. It doesn't pay you an income. This is one of the fundamental flaws with with trying to treat gold as an investment. It doesn't pay an income. Now, if it doesn't pay an income, but I have to store it, that means it does have a cost. Right? It's either going to have a cost or it's going to have a risk. And what I mean by that is I'm either going to store it myself, which is free, but there's risk there. It could get stolen, it could get, you know, I could have a fire, and it could get melted and damaged, you know, it can get misplaced. Um, all sorts of and so there's going to be a risk there.
Even if I store it at home, I'm going to pay for a for a safe and I'm probably going to pay for insurance. So, there's still a cost there. If I send it to a vault, there's no risk. There's nothing is going to happen to it but there is a cost of storage, right? So, what this means is while I'm holding the gold and it's appreciating, there's going to be a holding cost. And that holding cost is not being covered by income. So, it's a negative cash flowing asset in that regard, okay? So, it might be appreciating at eight to 10% a year but in storage, it might actually cost me 1% a year in actual dollars that I have to pay to somebody for them to store it, right? And that or that 1% of in in in dollars is not being compensated until after I sell it on the back end, right? So, this is the other thing is, okay, so when I'm storing, I also want to be able to get wholesale pricing.
This is one of the keys. I want to be able to get wholesale pricing when I sell. I want to get wholesale pricing when I store. I want to get wholesale pricing when I buy. So, we talked about buying. We talked about selling. We or we haven't talked about selling. So, we talked about storing now, okay? So, when I store, I'm also then looking at where can I get the best deal on storage? Okay. Now, when I'm storing gold, if I'm sending it to a vault, which is what we're going to talk about here, there are couple of things that I'm looking for, okay? So, I want to make sure that I'm sending it to a legitimate depository vault. Meaning, it's actually a a regulated actual deal. It's not somebody's basement, right? It's not just this, you know, my buddy down the road has a has a retail office space with a safe downstairs, right? Like, it's evolved. So, what does this mean? This means that it is secure, right? It actually has a vault.
A lot of these vaults are state-of-the-art. They've got, you know, like, like so much security that, that, you know, like, earthquakes and different things and these different, you know, even even or a a sorry, these, these, factors of, of, you know, just the atmosphere around it can be detected with the vaults. Right? So, it's, it's something like, you know, secure, it's not going to be able to be broken into, it's not going to be able to be, you know, compromised, they're not lending out. It's something that actually has to be a legitimate storage, right? The second aspect of this is it needs to be allocated, right? Meaning, when I send them my medals, they're actually keeping them. They're not lending them out. They're not leasing them to other people. If I give them 10 ounces of gold, somewhere in their vault, there's ten ounces of gold that says Jerry Feda on it.
Right? And I say this because not all of them are allocated. Right? This is this is the the unallocated bullying is the fractional reserve system at work. I gave them my bullion to store and they're going to loan it out to other people. They're going to lease it out. They're going to make on it. I'm going to pay them fees.
I get nothing. I don't want that. So, it has to be allocated, right? I also want to make sure that it's insured and then, I also want to make sure that it is audited. And usually by a third party. right? So, these are the big ones. Now, the other one you could do is also called segregated. Okay, this is more important if you're doing collectors items. If I send them a very significant piece of of gold or silver, it's important that they give me that exact piece back, right? That's called segregated. Now, if I just send them ten ounces of of gold and it's a generic bullion, personally, I don't care if that's the one they give me back. As long as they give me 10 ounces back, right? So, segregated means they're literally going to pull your gold and hold it separately from everyone else's and when you ask for it back, they're going to give you your very piece of gold Now, again, that's not something I personally care about.
One ounce of gold is one ounce of gold. I don't care if it's a different brand or if it looks a little bit different when I get it back. It melts down to the same thing, right? So, segregated is not as important but it is on there but these are the big form. Secure, right? Allocated. You want it to be insured. You want it to be audited, okay? So, these are the big ones you're looking at. Now, generally speaking, you're going to usually pay retail one to maybe one and a half percent per year of what you're storing. This can vary from everybody like but the thing is is you don't want to pay that much.
If you can get it down below that number, you're going to be able to save money and you're going to have less cost to hold, right? This is no different than paying a management fee on a mutual fund. The longer I pay this fee, the the more the price of bullion goes up, the higher dollar amount that fee becomes. So, I want to get that fee down as low as I possibly can, right? So, that's the storage piece of things, okay? Now, the other aspect of this and and I'm going to jump into some questions again soon as selling.
Okay, this is the dirty little secret of the bullying industry that I didn't know about in till I actually spoke with Matt and his company and they're like, hey, we don't charge sellback fees and I was like, what? What do you mean sellback fees, right? And so, when I started looking around, most dealers charge sell back fees. Okay, a sellback fee means that when I buy booyan, right? Like, think about it. If you buy gold, how many people in your life are going to buy it from you when you're ready to sell? Okay, for me, like my friends and family, they're not people that are like, you know, yeah, yeah, we have 20 grand, we'll buy your gold from you at at spot price, Jerry. Go ahead and sell it to us. That's not, that's not them. Right? So, I have to out who I sell it to. It's not going to be a pawnshop. I know that they're going to rip me off. So, I would generally speaking, I would go back to the place I purchased it from or whoever the the big name is in the market.
I'm going to find online like Best Buyin or whatever. I'm going to look there and I'm going to say, hey, well, you guys buy my boot, okay? So, this is the thing that nobody knows because they don't tell you upfront until you go to sell, okay? These bullion companies usually charge sellback fees. okay? So, a sellback fee looks like this.
When I go to a sell, they're going to look at the market and they're going to say, okay, what's the market? Is there a lot of of bullion available and if there is, then, you know, it's plentiful. We don't really need it that bad and so, we're going to charge a really high fee 'cuz we can go buy it from anyone.
So, if you want us to buy yours, you know, make us an offer, you know, pay us a good fee and they're usually going to charge one to 3 percent. of the sale price. right? Now, that might not sound like a big deal. You're like, oh, that's not huge. Okay, but think about this. When you sell it, you're selling it for more than you pay, right? Why would you want to tax the the harvest? Why would you want to pay fees on on the higher price at the end? You already paid fees to purchase it.
Right? Why would you, why would you also pay fees on the back end? Okay, and this is why the bullion shops do this. If they can buy, they buy a spot, right? So, they're looking at paying spot. If they can buy a 97% a spot, meaning they're buying at a 3% discount and then when they sell they're going to sell it for 3% more than Spot. They just doubled their profit on the same bullion. Same amounts of gold, they're going to make 6% now instead of three. This is how used car dealerships work. Same exact system, right? You turn in your car, you already know you're not going to get a good price for it. You already know that they're going to pay you under market value because that's how they make the profit and then when they sell it, they're going to market up and they're going to charge way more than it's actually worth and that's how they make their profit on the sale. Bullion is the same exact way, okay? So, I don't want to pay those sellback fees ever, right? To me, that's stupid.
Why would I pay to purchase and then also pay to sell. When I'm selling, I'm helping them. I'm giving them inventory. Even if I sold it to them at Spot, that's already a deal because they can't even buy that spot from a Wholesale it. The wholesaler is going to charge them spot plus a fee, right? So, so I don't want to, like, I'm already going to give them a deal at Spot.
I don't want to pay them 3%, or two percent, or 1 percent on top of that just to sell the bullion on a larger number, right? So, I want to show you guys the math on this really quick and then, I'm going to open this up for some more questions. So, let's say that I buy $20, 000 worth of gold. Okay, I'm just going to show you the difference here. Okay, so I buy $20, 000 worth of gold And we'll say, retail And then we'll say wholesale. Okay. I'm going to do this on my calculator so you guys won't be able to see all of the numbers but I'm going to type them out as they go. So both of them I put in 20000 dollars, right? I'm going to buy 20 grand worth of gold. Okay, on retail, let's say that I pay a 3% fee. Which means that I'm only actually going to be able to buy 19, 400 worth of gold, right? So I've got nineteen thousand 400 worth of gold.
Let's say that I sell it or or sorry, I store it in a vault, right? And I, and I keep it there for 10 years, and entire time it's earning an 8% annual rate, right? So, I've got, I put in 20, 000 and I did that times 10 years and it's earning eight percent per year while it's there. Okay, so we're all tracking with this so far, right? Now, 20, 000 in but I paid those fees because it's retail, right? Let's say that I'm also paying storage and my storage is one percent. Okay? And then, at the end of that 10 years, what do I have? Okay, so we're going to look at this whole equation.
So, I put it in twenty thousand, paid a 3% fee upfront, paid 1% annually in storage. I make 8% a year and when I when I sell it, there's a sellback fee of let's say 2%. Okay, they charge me 2% to buy my buoyan back, okay? So, that means that I'm only actually getting 98% of what I'm selling for because I'm paying them two percent to sell it back to them. So, at the end of this, I did make money right? But I'm going to have forty-two thousand one hundred and ninety-nine dollars and eighty cents. Okay, after 10 years, right? So, the difference here, let at Wholesale. Wholesale, same deal. I buy it, hold it for 10 years At 8% a year Okay, but on wholesale, there's no fees. I'm I'm getting my money's worth for bullying. They're not charging me extra fees, right? So, I'm actually getting the true value of what I'm putting in, okay? So, 20, 000 goes in.
Let's say that my storage is is, you know, point 75 instead of 1%. I'm able to save 25 basis points on storage, right? And you can get it down even lower. You can maybe even go. point 5 zero but let's let's just give the benefit of the down and say, I get point seven five percent storage cost instead of 1%, okay? So, what does that do for me, right? So, at the end of because I didn't have any selfies. Or sorry, yeah, yeah, no selfies, no, no, no buy fees, and then cheaper storage. At the end of this, this comes out to 44 thousand three hundred ninety-two dollars and eighty cents. right? So, I made over $2, 000 difference Okay? And that's that's on a very small amount. If you scale this out, this is on $20, 000 put in once. Imagine, like some of my clients, I had a guy send me a picture today and I can't post it here. I wish you could. Like, like, hundreds of thousands of dollars worth of gold. Okay, and this adds up. So, if you look at the, just the scale of this, on a tiny, little 20 thousand dollar purchase over a ten-year period, this came out to over $2, 000 difference.
Retail cost me two grand. Wholesale, I made more than two grand, just because I had lower fees, right Now, if we scale this out and we say, well, what if it was 1 00thousand? Okay, what if it was half a million? Like, what if it was some real serious numbers we're playing with at that point, okay? So, this is how you get the advantage on Bullion. This is, this is literally like you you you're making your money back on on literally just the savings. Right? Same exact purchase, same exact everything. The difference is I didn't have to pay the fees to get in. Okay, I didn't have the same storage costs, right? And then I didn't have the selling fees. Now, storage, let's, let's look at what if we could get that down to.
50% instead. so if I go point 5zero% instead Hope it doesn't look like my calculator will let me do that. I don't want to dink around with this. But you guys get the picture, okay? So, this is, this is how you save money on Buoyan. Now, the other aspect as well, and I'm going to open this up for questions in a little bit. When you're buying from these larger Mark says, you didn't include the membership fees in the wholesale price. Yeah, so membership fees and again, you only bought once, right? So, membership fees for 1 year is thirty-nine dollars a month times 12 months. So, you paid $468 in membership fees. Right? So, we can subtract that out but that's a, you know, if you just have the membership once because you're keeping it there, you're buying it one time and that's it, right? Now, if you're buying ongoing, that's different math but Mark has a point.
So, you pay $460 for one year of membership fees to buy that $20, 000 worth of gold. So, When we look at the other aspect, when you're buying from and this is the last thing I'm going to cover before we jump into more questions. When you're buying from these larger online dealers, right? You know, and I'll go ahead and name a few names, Jambuyen, right? You go there. Some of these bigger shops. When you're buying from them, a lot of times they're selling like, like, at the prices they're selling. You might compare it against them against others and be like, hey, this is this is cheap, right? This is very cheap. The reason why they're selling at some of the prices they're selling at, it's called a lost lead. They're willing to lose money on the bullion because that's not where they their money. Okay, they make their money when you sell it back to them like we covered. They make their money in storage and then, they also make their money by selling your information, right? So, they will sell your personal information to marketing companies and that's how they make a profit That way, information, no different than Facebook.
Why is Facebook free? They sell your information, right? You are the product. So, with a lot of these really big box discount online shops, you are the product. They're selling your information and that that can be personal information and then, that can also be your trade orders. Mean when when when they have a big enough client base, they can say, here's our orders, like, here's what people are buying and selling right now, they'll take that list and sell that to a hedge fund. The hedge fund will pay a really good money for that list because they now have insider information on what the bullion market's doing. Right? JP Morgan in twenty20, they paid a $2 billion dollar fine for rigging the silver market. And they still made profit after the fine, right? So if they can get information to rig a market or manipulate a market, these hedge funds are will to pay for that and so a lot of these bullying need not all of them but these bigger the bullying shops they'll sell your trade history, your order history for profit on that end as well.
Right? So if they can get you in purchasing, they can now sell your personal info, they can sell your trade history, and then when you sell it, you gotta come back to them and they're going to make fees when it costs more anyways. They're willing to be really cheap on the front end. They're willing to lose a little bit of money. So that's another thing like, for me, with Matt's company, Mint Builder, they don't do that. They're not selling your info, they're not charging you sell back and so I appreciate that.
We're the same way. When clients buy from us, all of that stays private, right? So, I'm going to open this up for some questions but the big thing that I want to get across from you is you know, when you're buying gold and silver, again, it is a store value. It's not an investment. It's not a speculation, right? And the main things you want access to is you want access to education. You want access to like low low front-end costs, low holding costs, and low selling costs and if you can get four of those things that's perfect And so that's what I do. That's what my company does.
That's what we encourage people to look for, right? Now, the final thing that I do want to touch on is the, the, the broker thing. So, if, if you're going to pay a fee, right? So, when you're paying a fee, if you're going to buy from a broker, sometimes our clients will buy from us as a broker where they're like, hey, well, you do the order. So, if I'm doing the wholesale thing and I'm paying for a membership and I'm just trying to get the cheapest cost, that said, do it yourself system. Meaning, I have a membership I'm going to log in. I'm going to shop my order.
I'm going to place my order. I'm going to pick what I want. I'm going to do it all by myself. And that's why that's cheaper. Is it self service? Right? You're getting wholesale pricing and you're self-servicing. Now if I need help or if if I'm looking for convenience that's where I would pay a broker. I'd say, hey, I don't know what I'm doing. So, I'm not going for the cheapest. I just want to make sure I don't get in trouble. I want to make sure that I get the right thing and I will pay you a fee to help. And that's where you'd hire a broker. Right? So where where would I hire a broker? I would I would pay a fee to a broker if A, I didn't know what I was doing yet, and they were giving me help.
I would pay for convenience like, hey, I just, I'm busy, right? I have some clients who are like, yeah, I know I could go do the wholesale but I would rather just have you guys do it every month, right? Just, just send it to me, bill my account, I don't want to think about it, I just want to have the gold show up. So, that's another time I would pay a broker.
The other thing is if they have access to like connections, information, things that I wouldn't get from anywhere else, right? And so, if I can get something like that where it's like, okay, I'm actually getting, you know, for example, we help our clients borrow against their gold. We help them lease their gold out for income. We help them set up IRAs. There's a lot of different things we do as a broker that other people might not do, right? And so, those are things that when I'm paying a broker, I'm justifying, okay, what if, what am I getting for the fee, which is what I said at the beginning. So, if I'm going wholesale, do-it-yourself system, I place my orders, I remind myself to place orders, I do everything myself If I'm going for a broker, I'm really leaning on their expertise and and I'm making them earn that fee is the point that I'm making. So, I'm going to open this up for some questions here. If you guys are on Zoom, go ahead and drop your questions in the chat and if you're on Facebook drop them in the comments and we'll we'll answer them that way too.
So, let me check Facebook first and see if we have any questions here. Alright, I don't think I see any new questions on on Facebook. Good. So, let me see Zoom here next. Mark has a good question about the about a the membership. Like if you if you have a membership fee and you're buying. Alright, so we have Mark back here. Mark, well, go ahead and ask you a question about the the just the cost benefit on the fee. Oh, yeah, yeah, Jerry. For, for me, like, I only purchase precious metals maybe at the most once a quarter, say four, four, at the most five times a a year. So, you know, I wish I knew you 30 years ago when I started investing in gold and I I would be a regular customer, that's for sure. But for me, I, I, I'm more interested, in, in the charismatic part. I I'm more of a collector than a storage of value type of bullying goal. Although I have both. So when I do buy, you know, gold and silver, I primarily buy it in the numismatic field, graded, proof, MS certified, and all, you know, all of that stuff.
Uh I I just love gold and silver. Um as the coin, numismatic part of it. Um more so than I do in the bullying part. only reason I started investing more in the Bullion part of it is because of the current economic situation that's going on. So I kind of changed my strategy as far as accumulating more precious metals but yeah I I think if any anybody's new in buying gold and silver you're you're environment is excellent and I I if I didn't have you know in an relationship from people over the years, I would definitely hop on and with with you Jerry. I spoke with Nano I think a week ago and I ordered your your book and you guys are top notch. That's all I got to say. You know, I love your training and I've been following you for a while though I'm not an active client.
I still wholeheartedly appreciate all of the information and value that you bring to the masses. Um I really appreciate that part of it. Uh Jerry. You're you're awesome. Yeah, thank you Thank you. and and Mark is right. So, when you're, when you're doing a membership system, you know, like, you do want to look at how frequently am I ordering, right? So, if I'm ordering like Matt's like, Mark said, I'm ordering once a year and it's like, I'm not doing a ton or I'm ordering twice a year, then, you know, sometimes it might be cheaper for me to pay retail on that one or two orders if they're just one-off type deals. So, that's again, where I would go like Matt, like Mark said, having, having, you know, having established relationships.
I would go to my broker and just say, hey, I want to by this and I'm going to do it twice this year and and I'll pay 3% because that's cheaper and and it's not going to be the same as the membership, right? Now, if I'm buying every month, then, it's like, okay, you know, like, like Costco, right? I'm going to go buy cheaper groceries at Costco. Although, I don't think they're cheaper anymore.
I think they just say they're cheaper. Same thing with Amazon, right? But these are the membership things. If I'm buying frequently or if I'm buying a large quantity. So, if we do the math on it, let's say that I'm paying, you know, 2% more on gold retail versus buying wholesal right? So, a membership with with Mint Builder with us is $39 a month. Um if we do the backwards math on that, thirty-nine dollars divided by point zero two means that I would need to be spending at least nineteen fifty a month, right? In in gold. So, that's basically one ounce of gold a month and that one ounce I'm making back my membership already. Um that might be several ounces worth of silver. Now, that's just on the buy. The other aspect is the storage. Um with with Mark, I don't know if Mark is throwing at home or not. I I saw him comment which I agreed.
Never store in a in a safety deposit box at a bank. The bank is the enemy. Like don't, don't, like, you've heard the phrase, what is the phrase, don't let the fox guard the chicken coop, okay? Don't put the chicken in the foxhole. Like, storing your your gold in a bank is putting the chicken in the foxhole. It's not even letting the fox guard the chicken coop. You're putting the chicken in the fox's home. What do you think is going to happen to the chicken? Right? So, that is the other aspect with the membership. Matt says banks don't even store their own gold, right? Like, what are banks even for at this point? This is ridiculous. Um but the storage is the other aspect. So, I'm I'm looking at, okay, if I buy one ounce of gold a month, I'm making my membership back just on that. If I'm storing and I'm getting cheaper storage, I'm making my membership back on that.
When I'm selling, same thing, I'm making my membership back on that. If I'm doing collateral loans and I'm not having to pay taxes on my gains because I borrowed instead of sold, I'm making my membership back there as well So, depending on your use but but Mark is totally right. If you're doing just a couple here and there, the membership might not make sense. Mark, I know we do numismatic and so that's something we can talk about if if you if you want to add that to your repertoire of of, you know, places you can go look at.
Mark says, banks are only good for Helox and paying monthly bills. Yeah, let me borrow against my house and and let me pay my bills and even then, it's like, you know, the the the bill pay thing is kind of arbitrary. I don't like paying money to you know, move paying fees to move money from my left pocket to my right pocket. Like that doesn't make any sense to me. But that's the business banks are in. So, Mark is right on those points. Good. So, let's see what are the questions we have here. Daniel has a question. Let me see if Daniel is still on. We're on with oh he's got the little guy on.
Hey, Jerry. Hey, Dan. How are you today? Awesome. Um, loving the webinar. Awesome. How's the little dude doing? Oh, man. He's getting big. So, the question here is you you know, you see the market. Uh there are a lot of inflation going on and we're we're seeing about 8% increase in gold per year but, what, what, what, what has to happen in the market for it to spike, to go above that. Yeah, that's a good question. So, gold is interesting because there's, there's, there's manipulation that goes on, it's also a tier 1 asset, which means it, it, it competes with the US Treasury for banks. So, like when treasury rates go down, banks buy more gold, then the price of gold goes up, treasury, treasury rates come up, and then like, oh, we want to own treasuries again, they get rid of gold or lessen their gold buying. So, there's a lot of factors. The biggest one is supply and demand, right? With any economic factors, supply and demand.
So, gold already has a limited supply. Limited quantity, there's only enough gold in existence for every single human being on Earth to own one ounce. That's it, okay? Now, the problem is the demand lies within financial literacy. I'm going to say this really bluntly. Stupid people won't buy gold. Right? Like people that don't understand money, they're not going to buy gold. They're they're just because they don't do smart things with their money. So, enough has to happen economically for the masses to be like, we're going to buy gold and when that happens, everyone rushes for gold and that jerks the price back up, right? So, in the nineteen 30s, everyone owned gold, right? By by definition, if you owned a dollar, there was gold underlying it.
People go down physical. We got off that system. We went to the Bretton Wood system where we had gold back dollars but they were fractional. People still owned some gold based on dollars and seventy-one. That was done. The dollar no longer was linked to gold and now only 12% of America owns gold which means the demand for gold on a consumer level is not there like it should be and that is due to financial illiteracy which is part of what we're solving, right? So, your question.
That's the aspect. There's always going to be industrial demand. There's always going to be banking demand. There's always going to be, you know, you know, like I said, the tier one asset aspect and all these different things but until the the American citizen says, that's a store of value. I'm done with the dollar and I'm not going to speculate. That's something that has to really click, I think, for us to see gold. You know, realize what it should be at and until then, it'll continue producing like it has been but I think what Dan is asking is when when do we see it, you know, like, exponentially, up. Um and I think that's the point where that would occur.
That's a great question too. I think we've got a maybe a couple more more questions here. So, Nana says, Jessica was asking what is meant by 19fifty. Was that, was that 1950 a month? Yeah, exactly. So, so the Mint Builder membership is 39 a month. Let's say that if I'm buying gold at retail, and I'm probably paying more than 2 percent. It's probably more like 3%. So, I'm paying 3% extra retail to buy gold and so, with that being said, if I'm saving that, I divide $39 dollars by point zero three. And that actually comes out to $1, 300 a month. So, so depending on where you're buying, what you're buying from, that's going to be your monthly order in order for your Mint Builder membership to basically pay for itself just on purchasing and then, again, the storage, selling, taxing, all these other things come into it as well but that's just done buying. Matt adds, you can also pause your membership for three months without losing your position.
Yeah, so that's another thing is if you, this is I think back to Mark's point. If you have, infrequent gold buying and you're like, I want the I'm not going to be using a ton. You can start it and then you can pause it for three months and then after 3 months, you can reup it again, make another purchase. I don't know how many times you can do that. Maybe Matt can answer that for us. But that's, that's something you can do if you're kind of an intermittent gold buyer, but I don't like the intermittent thing. I think if you're going to buy it, Mess says no limits.
You could literally start it, pause it for 3 months, start it again, buy some, pause it for 3 months, and just every quarter, you could be putting in gold orders, and that gives you access a membership. So, you pay for for the use of it, right? Mark says, that's a good aspect. Yeah and I'm literally four payments a year. Yeah, exactly. And I'm not a intermittent buyer. If you guys know me, what I recommend and I'll wrap up on this point is commit to just like with your sacred account, commit to a monthly amount that you know you can put in the gold and silver no matter what. And that's like your base. That's your base contribution. You're going to put that in. As you have more money show up, you start dumping in more. right? So, so what I do is I'll have a monthly amount where I know every month I'm going to kind of do X and I'll stay in that zone and then, as I have cash show up, then, I'll dump more in more on an unscheduled basis.
So, if you're a sacred account client, it's kind of like the paid up editions writer. Um Let's see here Nano says this would be a good practice regardless. It's a forced savings plan. Exactly. Yeah. So it's a forced savings plan and that that takes discipline out of it. It automates that process. Good. And then Jessica says she's buying a hundred dollars a month not including membership.
Yeah, so you're still saving on the hundred, to answer Jessica's questions. So, Jessica's saying she's buying a 00 dollarsa month of gold with a membership. So, she's still saving on the membership. Um, there are other benefits to it, that, that as you're, because you're a member, you have access to certain things. So, if you're smaller and you're not doing, you know, a thousand, 2000, 3000 a month yet, having that membership, having that relationship does give you access to things down the road that you wouldn't have otherwise. Um, so it's kind of an investment in that aspect too. But and then the other thing Jessica says to says cool things. The other thing too is you know the the the use of it.
So, it's, if I have a membership, what am I doing with it? If I'm never using it, it's kind of like a gym membership, right? I can sign up for a gym membership. I used to be a personal trainer. People do that all the time and they never use it and then, it's like, yeah. You probably shouldn't have one, right? But even if I go and you know, a little bit and I go on a little bit more than I would have because I have a membership. That That is like a a factor and it might not be mathematical. It's more behavior. If it causes me to buy more gold than I would have, had I not had the membership. If it causes me to go to the gym more than I would have if I didn't have a membership, then it's giving me a return on investment by creating behavior change, right? Cuz eight percent of zero is zero, right? So if it's causing me to buy more gold, it's causing me to use it more.
That's the other aspect of it too. And that's the, that's the part that I like. It's not like you have to do a 000 a month. Um, Good. I think that's all of our questions. Mark says the education alone is worth the membership. Yep, I agree. This is, this is, I keep saying I'm going to wrap up. Last thing, and then, I promise I'll wrap up. I could talk all day about gold. Um, and I think we just got a couple more comments on Facebook too. Okay, so, so gold, this industry is very old. Um, and so, what I mean by that is kind of a good old voice club, right? There aren't a lot of young people in it, there aren't a lot of women in it, there aren't a lot of other, other ethnic groups, and it's kind of like old white men. And I, and I don't mean to get to that that conversation but there's not a lot of, like, it's not open to a lot of people.
The barrier to entry was very high. I was talking to Matt about when he got his first wholesale relationship, and, and, like, you know, they, they did everything but script search him. To be like, okay, cool. We'll let you join our club and we'll we'll sell Bullion to you, right? Same thing with me, like we're going through a lengthy application process. So, just the fact that we can, you know, I hate to use the buzzword, decentralize or democratize, being able to get into gold, and get the information like this and it's not like you have to be in this, you know, country club or or know the right people.
It's like, no, you can, you can go log in and go train and go learn. That's, that's something that I love about this. Maya has a couple questions on on Facebook. Maya says, what happens if the bank stores it? Why is that bad? So, that's a great question. So, first things first is, the bank has ours, right? And so, if I need my gold and the banks not open or it's a holiday, I'm basically out of luck versus with a deposit whenever I request it, they're going to send it to me. So, that's the first thing. The second thing is the the deposit boxes in the bank are not covered by FDIC insurance. Okay, that's just your deposits. So, if something happens, your goal isn't protected.
Third, like, Matt was saying, the banks don't even store their own gold. So, if they won't even store their own product, use their own storage product, then, I don't, I don't want to trust them with my gold and silver and then, last is banks are able to do what's called a bail in. If a bank goes in solvents, they can keep their deposits and and not give them to their customers in order to stay afloat before the government will bail them out. Um and so that's something that puts you at risk there as well. And then finally they're expensive. Um I think the the couple times we've used depository boxes with banks and this was years ago. They were charging like three or four hundred dollars a year for like a fourteen square inch box. Um and so they're they're charging for actual space because it's a box.
You stick it in and pull it out. Right? Versus sending it to a vault. It's just a vault. They're going to stick it wherever it fits and it doesn't. It's not if I if I want more space, I'm going to, you know, pay for the space. It's based on the amount that I'm depositing. So, those are all of the reasons, there's probably more of them. All of the reasons why I wouldn't store in a bank. Maya says, you can pay bills for free on QuickBooks. That is true. Maya says Matt's not old. Justin says, I'm not old either. Uh yo, that's what I mean. Is is is Matt, Matt, and me and and people like us. We've made this into not the good old boys club. The other people that we've talked to and worked with in the past with gold and silver, they're all like 60 and 70 years old. They've been doing it since the 1980s and it's like, you know, like just that whole scene, right? So, that is a younger guy.
I am younger. Justin is younger as well. Justin exercises every day and stays young. Mark says I'm old. Mark just, Mark admits it. That's alright. Mark is is is young at heart I can tell. Mark asked, does the IRS, does the IRS track your precious metals? From a sales tax standpoint depending on your state, that can be a factor. So, if you buy in certain states, you do pay sales tax on your purchasers and that's going to be at the state level, not the IRS level. I don't think from an IRS level, I don't think on purchases they do. I think from anti-money laundering, there are some things there if you buy over a certain amount over, I think it's 10000 is usually a threshold with cash, that might trigger, trigger some, some record keeping on like anti money, money laundering, generally speaking, like, for example with us. We don't report your gold buying to the IRS. So, you buy it from us. Sure, we report our revenue and our profits but we don't say who bought what.
That's not their business. So, it does give you privacy in that aspect. You do need to report when you sell it at a game. So, that is your responsibility to report your taxes. don't commit tax fraud. Maya and I can't help you get out of that if you do that. So, be honest with that even though you're not being tracked. Okay, good. I think that that's it. I think we can finally say we're wrapping up for tonight Nano says I'm Latino and I'm young. Very true. Yeah that's it. Good. So guys we're going to wrap up for tonight. If you're watching and you have not got a copy of my book yet. Blueprint to Financial Freedom. Grab one here. Um Jerry Feda. com forward slash B2 F. If you haven't set up a call with Nano and you want to do a free consultation. Reach out. Get connected with Nano. If he sent you a DM in the comments don't be a weirdo and ignore it. Um and then lastly if you are a client of mine has at least a sacred account.
We're doing a get together in my house tomorrow night here in Tampa. Um 6 PM Eastern Time. We will have Matt's going to be there. I was I was going to say that. Matt will be there so you guys will be able to see Matt meet him as well. Um ask him questions about gold, silver, mint builder, whether he's old or young. He's one of those people you can't tell when you meet him. So I'm I'm going to let I'm going to leave that that interesting part of Matt up to you guys to determine his age. Um but that's it. 6PM tomorrow night. We will be back again next week. Um Nano says I'll dress up as Matt tomorrow. I don't think that's possible. Uh Matt's not Latino but Nano try it. I want you to try it and I would like to see how this turns out. This is a good idea. Um this is one of your better ideas.
Alright, Greg. Guys, we're going to tune out.
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Retirement Struggles: 2 Things I Struggled With When I Retired
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
what's going on everyone welcome back to the showÂ
so as you guys can see now I'm on the road and  I am on my way to Las Vegas there's a conventionÂ
the National Association of broadcasters  convention and so I'm gonna go to that see what'sÂ
going on when it comes to the new technology comes  the cameras and audio equipment things like thatÂ
but I wanted to talk a little bit about retirement  and I just want to add on to the video thatÂ
I posted a couple of days ago and if you guys  can do me a favor like I've I've stated inÂ
previous videos actually I stated only in  one video the last video that I posted aboutÂ
please support the retirement content because  YouTube is not promoting this out the sameÂ
way that it would promote some of my other  videos so like if I post a video on a socialÂ
security update usually YouTube will promote  that but when I talk about retirement forÂ
whatever reason YouTube does not promote that  now you guys can do me a favor by just hittingÂ
the like button subscribing to the channel  hitting the little bell notification all thatÂ
good stuff that helps with the algorithm but  by also sharing this content with your family andÂ
friends and that helps with the algorithm as well  so I'm almost I'm actually almost to Vegas I'veÂ
been driving for the last two and a half hours and  I just thought about something I wanted to talkÂ
a little bit about when it comes to retirement  so as you guys know if you don't knowÂ
I retired about it's been a year in  a year and six months no notÂ
a year a year and four months  and one thing that I did not anticipate and thisÂ
is I talked about some of the things in a previous  video and I'll post a link to that video so youÂ
can check it out but one of the things that IÂ Â didn't expect and this is more of a negative whenÂ
it comes to retiring is that a lot of the people  that you work with so your friends at work and IÂ
consider friends at work and your friends that you  grew up with they're kind of in different banksÂ
right they're not the same because your friends  you grew up with I have friends that I grew upÂ
with and they've been my friends for for years  and years but when you start working somewhereÂ
of course you're going to develop friendships  but it's kind of a situation where I don'tÂ
want to say it's a forced relationship  but you do have to spend a lot of time withÂ
those people anyway and sometimes that develops  into a relationship where you might go outÂ
to lunch together and you might even spend  time outside of work with them and so one ofÂ
the things that I didn't anticipate is those  people that you do have relationships with atÂ
work and you go to lunch and things like that  some of those people will not be around when youÂ
retire so they might continue working and you  retire and you don't hear from them anymore and soÂ
that's one of the things that I didn't anticipate  I was thinking you know what some of these friendsÂ
we've had a friendship for years let's say five  ten years and it was okay when we were workingÂ
together because we saw each other a lot and  we spent time and talked about different thingsÂ
and all that but when you retire it's different  now you're not a part of of the company anymoreÂ
you're not a part of the the the the the workforce  um and so you don't see that person very often andÂ
you might not have even talked to them that much  on the phone or text with them that much whenÂ
you were working because you saw them all the  time but now that you're retired it's totallyÂ
different because now you don't text them and  you really don't hear from them so that wasÂ
a big thing that I had to kind of adjust to  and there are some people that I still talk withÂ
there are some people that I work with that IÂ Â still talk to on a regular basis that I go outÂ
to lunch with even now that I'm retired I still  got to go out to lunch with them and spend timeÂ
with them but some of those people I was already  doing that before I mean that it was already itÂ
was already established like I met them at work  but we already had a friendship outside of workÂ
and so that friendship was able to continue  where is there some other people that I hadÂ
relationships with didn't really spend too  much time outside of work with them and thoseÂ
are the people that you you really don't hear  from maybe I'll hear from them once in a blue moonÂ
if someone got fired and they wanted to share this  information with me for whatever reason that thatÂ
kind of stuff where something happened that was  drastic at work where they want to share that withÂ
you and so I think it's just something that you  should think about when you retire who's stillÂ
going to be around as your friends and who is  not going to talk to you anymore or prettyÂ
much they're going about their business and  you're not a part of their life anymore and like IÂ
stated I've had I have friends that I grew up with  and they're still my friends today and I spendÂ
time with them so this is not anything for me  it's not a big deal but it's just an observationÂ
it's something that I didn't really anticipate IÂ Â was thinking that some of the people that IÂ
spent a lot of time with at work I probably  still be in touch with them after I stop workingÂ
there but it is it it's not that's not the case  and so I just wanted to mention them now thereÂ
are some other things when it comes to retirement  that are were Shockers to me things that aren'tÂ
really you know positive and I wanted I talked  about in the previous video I talked about allÂ
the the positives of retirement and they're  the positives far outweigh the negatives when itÂ
comes to retiring and so I just wanted to mention  this and I'm really when it comes down to itÂ
if you are in a situation where you have the  opportunity to retire especially if you haveÂ
the opportunity to retire when you're younger  and you can afford to do that I highly highlyÂ
recommend taking taking that that uh that leap  because there are so many things that you canÂ
benefit from if you retire and what some people do  is they will especially if you workÂ
where you're receiving a pension  what a lot of people will do is they'll go aheadÂ
and retire and start pulling that tension in and  then go somewhere else and get anotherÂ
job in in the law enforcement community  this is very common you see this a lot becauseÂ
you're working in law enforcement you're working  for the government you're usually going to receiveÂ
a pension and they will take that pension and then  go and they can do the same job go to anotherÂ
agency that has a different Retirement System  and then they can collect their pensionÂ
after they've retired from the the first  uh the first law enforcement job and then goÂ
to another law enforcement job and double dip  and so that's very very common and not you knowÂ
I'm not talking about just police officers and  things like that I'm talking about peopleÂ
who work for a government in general so it  doesn't even have to be just law enforcement mostÂ
government jobs they have pension plans set up  and so they will do that exact same thingÂ
they'll leave they'll go somewhere else and  they'll they'll be able to collect a pensionÂ
as well as work another job and and double dip  and so that's another option but I I highlyÂ
recommend as soon as you can if you can retire  do it there are a lot of people out there thatÂ
are struggling at work and they might not ever  be able to retire and that's really sad andÂ
there's some people that are doing fine at work  and they can retire but they don't knowÂ
what they're going to do when they retire  and so they just continue to work and just myÂ
opinion that's the wrong the wrong way to do  things not everybody I mean some people theyÂ
love their job and that's why they stay there  and they they don't know what they would doÂ
without their job and I completely understand  that one of the other negatives when it comes toÂ
retiring is now you're no longer on a schedule  whereas when I was working I had a scheduleÂ
got up at a certain time in the morning Monday  through Friday eight at a certain timeÂ
in the morning got to work ate lunch at  a certain time everything was was structuredÂ
whereas when you retire that structure is gone  and that's one thing that I had to to learn reallyÂ
fast was I need to have a structure so if that  means me creating my own structure or somethingÂ
working a part-time job or doing something I need  to have that structure because if not then I endÂ
up not doing anything for days on end where it's  like okay I I plan to do something and then IÂ
just keep putting it off because I don't have  that structure and so that's something that'sÂ
really important and something that I've learned  just in this year and a half that I've beenÂ
been retired I've learned the importance of  I need to be on a on a schedule and I need toÂ
stick to that schedule so I can get things done  and so I just wanted to share that with youÂ
guys and those are the two main things there  when it comes to retirement that I've noticedÂ
just in this last a little over a year  the fact that some of your friends at work you'reÂ
probably not going to hear from when you retire  and the schedule aspect you need to be on theÂ
schedule and I say that I shouldn't say you  need I need to be on a schedule in order to getÂ
things done when I retire because that's just the  way way I am and I've been working for the vastÂ
majority of my adult life on a schedule and so  it's hard to be off the schedule when you retireÂ
and so I just wanted to share that now I want  you guys in the comments below if you guys can doÂ
me a favor let me know some of the the struggles  that you found in retirement so let me know thatÂ
in the comments below and if you like this video  please give me a thumbs up please subscribe forÂ
more next time you guys see me I'm going to be  in Las Vegas and I will continue to post videosÂ
every day so that's not going to change but IÂ Â just wanted to give you guys a quick update andÂ
yes I'm on my way to Vegas next time you see me  it'll probably be me shooting a video out of theÂ
hotel so it'll be a little different environment  and I might even show you some some stuff fromÂ
the the actual uh the conference that I'm going to  so that's all I have like the videoÂ
subscribe for more please share like  I said please share this video with others andÂ
I will talk to you guys in the next one goodbye
How To Save For Retirement: Suze Orman Shares Her Best Money Advice | TODAY
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
>>> AND WE’RE BACK WITH OUR >>> AND WE’RE BACK WITH OUR SPECIAL SERIES LIVING LONGER SPECIAL SERIES LIVING LONGER TODAY, EXPLORING WAYS TO LIVER TODAY, EXPLORING WAYS TO LIVER NOT ONLY LONGER BUT BETTER. NOT ONLY LONGER BUT BETTER. >> THIS MORNING WE’RE FOCUSING >> THIS MORNING WE’RE FOCUSING ON YOUR FINANCES AND THE NEW ON YOUR FINANCES AND THE NEW ADVICE EXPERTS ARE GIVING TO ADVICE EXPERTS ARE GIVING TO MAKE YOUR MONEY REALLY LAST. MAKE YOUR MONEY REALLY LAST. >> THE GOOD NEWS AMERICANS ARE >> THE GOOD NEWS AMERICANS ARE LIVING LONGER, WHAT THAT MEANS, LIVING LONGER, WHAT THAT MEANS, A NEW FOCUS ON MAKING YOUR MONEY A NEW FOCUS ON MAKING YOUR MONEY LAST. LAST. >> AS YOU’RE PLANNING FOR YOUR >> AS YOU’RE PLANNING FOR YOUR FUTURE, DON’T UNDERESTIMATE HOW FUTURE, DON’T UNDERESTIMATE HOW LONG YOU’RE GOING TO LIVE. LONG YOU’RE GOING TO LIVE. >> IN FACT, ABOUT ONE OUT OF >> IN FACT, ABOUT ONE OUT OF EVERY FOUR 65-YEAR-OLDS TODAY EVERY FOUR 65-YEAR-OLDS TODAY WILL LIVE PAST 90.
WILL LIVE PAST 90. >> THE OLD ADVICE USED TO BE >> THE OLD ADVICE USED TO BE THAT AS YOU’RE PLANNING FOR THAT AS YOU’RE PLANNING FOR RETIREMENT EXPECT TO LIVE INTO RETIREMENT EXPECT TO LIVE INTO YOUR 80s. YOUR 80s. NOW THE EXPECTATION IS THAT NOW THE EXPECTATION IS THAT YOU’LL HAVE A GOOD CHANCE OF YOU’LL HAVE A GOOD CHANCE OF LIVING INTO YOUR 90s, MAYBE EVEN LIVING INTO YOUR 90s, MAYBE EVEN CELEBRATING YOUR 100th BIRTHDAY. CELEBRATING YOUR 100th BIRTHDAY. >> WITH LONGEVITY CAN COME THE >> WITH LONGEVITY CAN COME THE ADDED STRESS TO SAVE MORE.
ADDED STRESS TO SAVE MORE. >> PLANNING FOR THE FUTURE HAS >> PLANNING FOR THE FUTURE HAS BECOME A LOT MORE CHALLENGING BECOME A LOT MORE CHALLENGING AND REALLY THE ONUS IS NOW ON AND REALLY THE ONUS IS NOW ON THE INDIVIDUAL MORE THAN EVER. THE INDIVIDUAL MORE THAN EVER. >> SO HOW DO WE MAKE SURE WE’RE >> SO HOW DO WE MAKE SURE WE’RE FINANCIALLY PREPARED FOR ALL FINANCIALLY PREPARED FOR ALL THOSE EXTRA YEARS? THOSE EXTRA YEARS? IT’S EASY. IT’S EASY. JUST CALL SUZE ORMAN, A PERSONAL JUST CALL SUZE ORMAN, A PERSONAL FINANCE EXPERT. FINANCE EXPERT. SHE HOSTS SUZE ORMAN’S WOMEN AND SHE HOSTS SUZE ORMAN’S WOMEN AND MANY PODCASTS. MANY PODCASTS. >> WE’RE LIVING LONGER. >> WE’RE LIVING LONGER. THAT’S GREAT, BUT THE BAD NEWS THAT’S GREAT, BUT THE BAD NEWS IS, WE SURVEYED OUR TODAY.COM IS, WE SURVEYED OUR TODAY.COM AUDIENCE.
AUDIENCE. THEY SAID 60% OF THEM FELT LIKE THEY SAID 60% OF THEM FELT LIKE THEY DON’T HAVE THE AMOUNT OF THEY DON’T HAVE THE AMOUNT OF MONEY THAT THEY’RE SAVING RIGHT MONEY THAT THEY’RE SAVING RIGHT NOW THAT, THAT IT WON’T LAST NOW THAT, THAT IT WON’T LAST THEM THROUGH THEIR RETIREMENT. THEM THROUGH THEIR RETIREMENT. >> IF YOU REALLY THINK ABOUT IT, >> IF YOU REALLY THINK ABOUT IT, YOU GUYS, MOST PEOPLE BARELY YOU GUYS, MOST PEOPLE BARELY HAVE THE MONEY TO PAY THEIR HAVE THE MONEY TO PAY THEIR BILLS TODAY LET ALONE SAVE IN BILLS TODAY LET ALONE SAVE IN THEIR MINDS FOR THE FUTURE.
THEIR MINDS FOR THE FUTURE. >> PEOPLE FEEL LIKE THEY CAN’T >> PEOPLE FEEL LIKE THEY CAN’T SAVE. SAVE. >> THEY JUST FEEL THAT WAY, AND >> THEY JUST FEEL THAT WAY, AND THEY HAVE TO CHANGE THAT BECAUSE THEY HAVE TO CHANGE THAT BECAUSE THEY ARE GOING TO SPEND MORE THEY ARE GOING TO SPEND MORE YEARS IN RETIREMENT THAN THEY YEARS IN RETIREMENT THAN THEY EVER DID WORKING IF YOU THINK EVER DID WORKING IF YOU THINK ABOUT IT BECAUSE MOST PEOPLE ABOUT IT BECAUSE MOST PEOPLE THINK THEY’RE GOING TO RETIRE AT THINK THEY’RE GOING TO RETIRE AT 65, MAYBE THEY WORK 30 YEARS, 65, MAYBE THEY WORK 30 YEARS, THEY’RE GOING TO LIVE TO 100 THEY’RE GOING TO LIVE TO 100 POSSIBLY.
POSSIBLY. >> OENGWNING A HOUSE WAS ALWAYS >> OENGWNING A HOUSE WAS ALWAYS THE PLAN, BUT FOR THESE THE PLAN, BUT FOR THESE MILLENNIALS, THEY’RE OPEN ABOUT MILLENNIALS, THEY’RE OPEN ABOUT THE FACT THEY THINK THEY’LL THE FACT THEY THINK THEY’LL NEVER BE ABLE TO AFFORD A HOUSE, NEVER BE ABLE TO AFFORD A HOUSE, NEVER MIND SOME LONGEVITY OR NEVER MIND SOME LONGEVITY OR 401(k).
401(k). >> THAT’S NOT SUCH A HORRIBLE >> THAT’S NOT SUCH A HORRIBLE THING. THING. I DON’T THINK THAT THE KEY TO I DON’T THINK THAT THE KEY TO YOUR RETIREMENT IS OWNING A YOUR RETIREMENT IS OWNING A HOME. HOME. I THINK THE KEY TO YOUR I THINK THE KEY TO YOUR RETIREMENT IS HAVING ENOUGH RETIREMENT IS HAVING ENOUGH MONEY TO PAY WHATEVER YOUR MONEY TO PAY WHATEVER YOUR EXPENSES HAPPEN TO BE SO THE KEY EXPENSES HAPPEN TO BE SO THE KEY IS TO GET RID OF AS MUCH IS TO GET RID OF AS MUCH EXPENSES AS YOU CAN, DON’T HAVE EXPENSES AS YOU CAN, DON’T HAVE DEBT.
DEBT. IF YOU DO HAVE A HOME, MAKE SURE IF YOU DO HAVE A HOME, MAKE SURE YOUR MORTGAGE IS PAID OFF BY THE YOUR MORTGAGE IS PAID OFF BY THE TIME YOU RETIRE. TIME YOU RETIRE. THAT WOULD BE MY NUMBER ONE TIP THAT WOULD BE MY NUMBER ONE TIP TO TELL EVERYBODY THEY HAVE GOT TO TELL EVERYBODY THEY HAVE GOT TO DO IF THEY DO OWN A HOME. TO DO IF THEY DO OWN A HOME. >> WE’RE GOING TO GET INTO THAT. >> WE’RE GOING TO GET INTO THAT. WE HAVE THE THREE W’S. WE HAVE THE THREE W’S. THE FIRST IS WHERE. THE FIRST IS WHERE. WHERE IS THE BEST PLACE TO WHERE IS THE BEST PLACE TO INVEST YOUR MONEY SO IF YOU DO INVEST YOUR MONEY SO IF YOU DO HAVE 30ISH YEARS OF RETIREMENT HAVE 30ISH YEARS OF RETIREMENT YOU’RE SET? YOU’RE SET? >> I’VE SAID FOR A LONG TIME, >> I’VE SAID FOR A LONG TIME, JUST FORGET THE TAX WRITE OFFS JUST FORGET THE TAX WRITE OFFS OF YOUR PRETAX 401(k) OR IRA.
OF YOUR PRETAX 401(k) OR IRA. FORGET THOSE NOW, AND IF YOUR FORGET THOSE NOW, AND IF YOUR CORPORATION OFFERS IT, CAN YOU CORPORATION OFFERS IT, CAN YOU CO CO DO A ROTH 401(k) OR A ROTH IRA DO A ROTH 401(k) OR A ROTH IRA WHICH ARE AFTER TAX WHICH ARE AFTER TAX CONTRIBUTIONS. CONTRIBUTIONS. WHY? WHY? YOU DON’T HAVE TO WORRY WHAT THE YOU DON’T HAVE TO WORRY WHAT THE TAX BRACKETS ARE GOING TO BE 20, TAX BRACKETS ARE GOING TO BE 20, 30, AND 40 YEARS FROM NOW.
30, AND 40 YEARS FROM NOW. I PERSONALLY THINK THEY’RE GOING I PERSONALLY THINK THEY’RE GOING TO SKYROCKET OVER THE YEARS, SO TO SKYROCKET OVER THE YEARS, SO THEREFORE WHAT YOU SEE IS WHAT THEREFORE WHAT YOU SEE IS WHAT YOU GET IN A ROTH IRA OR A ROTH YOU GET IN A ROTH IRA OR A ROTH 401(k). 401(k). AGAIN, IT’S PRETAX VERSUS AFTER AGAIN, IT’S PRETAX VERSUS AFTER TAX, BUT AFTER THAT IT’S TAX TAX, BUT AFTER THAT IT’S TAX DEFERRED VERSUS TAX FREE. DEFERRED VERSUS TAX FREE. IT’S FOR YOUR BENEFICIARIES IN A IT’S FOR YOUR BENEFICIARIES IN A PRETAX ACCOUNT THEY’RE GOING TO PRETAX ACCOUNT THEY’RE GOING TO PAY TOTAL TAXES ON IT. PAY TOTAL TAXES ON IT. >> LET’S GO BACK TO DEBT FOR A >> LET’S GO BACK TO DEBT FOR A SECOND.
SECOND. FOR PEOPLE WHO HAVE STUDENT FOR PEOPLE WHO HAVE STUDENT LOANS, THEY’VE GOT CREDIT CARDS, LOANS, THEY’VE GOT CREDIT CARDS, THEY’VE GOT THAT MORTGAGE. THEY’VE GOT THAT MORTGAGE. HOW DO YOU PRIORITIZE THE DEBT? HOW DO YOU PRIORITIZE THE DEBT? WHAT DO YOU PAY AND WHEN? WHAT DO YOU PAY AND WHEN? >> STUDENT LOAN DEBT IS THE MOST >> STUDENT LOAN DEBT IS THE MOST DANGEROUS DEBT YOU CAN HAVE BAR DANGEROUS DEBT YOU CAN HAVE BAR NONE BECAUSE IN 90% OF THE NONE BECAUSE IN 90% OF THE CASES, 99%, IT IS NOT CASES, 99%, IT IS NOT DISCHARGEABLE IN BANKRUPTCY. DISCHARGEABLE IN BANKRUPTCY. SO THEY HAVE THE LEGAL AUTHORITY SO THEY HAVE THE LEGAL AUTHORITY TO GARNISH YOUR WAGES AND TO TO GARNISH YOUR WAGES AND TO REALLY THEN DECREASE YOUR INCOME REALLY THEN DECREASE YOUR INCOME SO STUDENT LOAN — SO STUDENT LOAN — >> TAKE CARE OF THAT FIRST.
>> TAKE CARE OF THAT FIRST. >> FIRST THAT. >> FIRST THAT. THEN IF YOU HAVE CREDIT CARD THEN IF YOU HAVE CREDIT CARD DEBT THAT NEEDS TO GO BECAUSE DEBT THAT NEEDS TO GO BECAUSE DEBT IS BONDAGE. DEBT IS BONDAGE. YOU GOT TO GET OUT OF THAT. YOU GOT TO GET OUT OF THAT. AND THEN YOU START WORKING, IF AND THEN YOU START WORKING, IF YOU’RE GOING TO STAY IN YOUR YOU’RE GOING TO STAY IN YOUR HOME FOR THE REST OF YOUR LIFE, HOME FOR THE REST OF YOUR LIFE, GET RID OF YOUR MORTGAGE GET RID OF YOUR MORTGAGE PAYMENT. PAYMENT. >> I WANT TO FOLLOW UP ON THAT.
>> I WANT TO FOLLOW UP ON THAT. YOU DON’T WANT TO HAVE A YOU DON’T WANT TO HAVE A MORTGAGE, A LIVE MORTGAGE STILL MORTGAGE, A LIVE MORTGAGE STILL GOING BY THE TIME YOU RETIRE. GOING BY THE TIME YOU RETIRE. WHY? WHY? >> BECAUSE YOUR MORTGAGE PAYMENT >> BECAUSE YOUR MORTGAGE PAYMENT IS YOUR HIGHEST MONTHLY EXPENSE IS YOUR HIGHEST MONTHLY EXPENSE THAT YOU’RE GOING TO HAVE BAR THAT YOU’RE GOING TO HAVE BAR NONE. NONE. >> WHEN YOU RETIRE. >> WHEN YOU RETIRE. >> IT’S FAR EASIER TO PAY OFF >> IT’S FAR EASIER TO PAY OFF YOUR MORTGAGE THAN TO SAVER THE YOUR MORTGAGE THAN TO SAVER THE MONEY TO GENERATE THE INCOME TO MONEY TO GENERATE THE INCOME TO PAY OFF YOUR MORTGAGE. PAY OFF YOUR MORTGAGE. YOUR GOAL IN RETIREMENT IS TO BE YOUR GOAL IN RETIREMENT IS TO BE TOTALLY DEBT FREE 100% IN TOTALLY DEBT FREE 100% IN RETIREMENT.
RETIREMENT. IF YOU DON’T HAVE ENOUGH MONEY, IF YOU DON’T HAVE ENOUGH MONEY, DECREASE YOUR EXPENSES, AND THEN DECREASE YOUR EXPENSES, AND THEN YOUR MONEY WILL GO FURTHER. YOUR MONEY WILL GO FURTHER. >> GOT YOU. >> GOT YOU. >> WHAT ABOUT WHEN, WHEN DO YOU >> WHAT ABOUT WHEN, WHEN DO YOU START? START? I KNOW, WHEN WE’RE BORN WE I KNOW, WHEN WE’RE BORN WE SHOULD START SAVING.
SHOULD START SAVING. >> YOU HAVE THE 200 BUCKS WHEN >> YOU HAVE THE 200 BUCKS WHEN YOU’RE 30. YOU’RE 30. >> PEOPLE ALWAYS THINK THEY HAVE >> PEOPLE ALWAYS THINK THEY HAVE TIME, TIME IS THE MOST IMPORTANT TIME, TIME IS THE MOST IMPORTANT INGREDIENT IN YOUR RETIREMENT INGREDIENT IN YOUR RETIREMENT RECIPE. RECIPE. LET’S JUST SAY YOU HAVE 40 LET’S JUST SAY YOU HAVE 40 YEARS. YEARS. YOU’RE YOUNG. YOU’RE YOUNG. YOU HAVE 40 YEARS UNTIL YOU’RE YOU HAVE 40 YEARS UNTIL YOU’RE GOING TO BE 70. GOING TO BE 70. YOU PUT $200 A MONTH AWAY INTO A YOU PUT $200 A MONTH AWAY INTO A ROTH IRA OR ROTH 401(k). ROTH IRA OR ROTH 401(k). AVERAGE MARKET RETURNS, DO YOU AVERAGE MARKET RETURNS, DO YOU KNOW THAT YOU WOULD HAVE KNOW THAT YOU WOULD HAVE $1.1 MILLION AT 70, WHICH I $1.1 MILLION AT 70, WHICH I THINK SHOULD BE THE NEW THINK SHOULD BE THE NEW RETIREMENT AGE, BUT YOU WAIT TEN RETIREMENT AGE, BUT YOU WAIT TEN YEARS.
YEARS. >> YOU’RE TALKING ABOUT HAVING A >> YOU’RE TALKING ABOUT HAVING A SURPLUS OF 200 BUCK WHEN IS SURPLUS OF 200 BUCK WHEN IS YOU’RE 30. YOU’RE 30. SHOULD YOU TAKE THAT 200 AND SHOULD YOU TAKE THAT 200 AND APPLY IT TO ONE OF THESE OTHER APPLY IT TO ONE OF THESE OTHER THINGS. THINGS. >> YOU NEED TO BE SAVING >> YOU NEED TO BE SAVING ESPECIALLY IN A 401(k), ESPECIALLY IN A 401(k), ESPECIALLY IF THEY MATCH YOUR ESPECIALLY IF THEY MATCH YOUR CONTRIBUTION.
CONTRIBUTION. YOU PUT IN A DOLLAR, THEY GIVE YOU PUT IN A DOLLAR, THEY GIVE YOU $0.50. YOU $0.50. I DON’T CARE IF YOU HAVE ANY I DON’T CARE IF YOU HAVE ANY MONEY. MONEY. YOU CAN’T PASS UP FREE MONEY. YOU CAN’T PASS UP FREE MONEY. IF YOU STARTED PUTTING, JUST IF YOU STARTED PUTTING, JUST LET’S SAY $200 A MONTH AWAY, AND LET’S SAY $200 A MONTH AWAY, AND YOU NOW ONLY HAVE 30 YEARS LEFT YOU NOW ONLY HAVE 30 YEARS LEFT VERSUS 40, YOU’D ONLY HAVE LIKE VERSUS 40, YOU’D ONLY HAVE LIKE $400,000. $400,000. YOU JUST BLEW $700,000 BECAUSE YOU JUST BLEW $700,000 BECAUSE YOU WAITED TEN YEARS. YOU WAITED TEN YEARS. IT WAS ONLY A $24,000 DIFFERENCE IT WAS ONLY A $24,000 DIFFERENCE IN THOSE TEN YEARS.
IN THOSE TEN YEARS. BUT THE TEN YEARS, THE SOONER BUT THE TEN YEARS, THE SOONER YOU BEGIN, THE BETTER YOU’LL BE. YOU BEGIN, THE BETTER YOU’LL BE. >> JUST TO CARSON’S POINT. >> JUST TO CARSON’S POINT. IF I HAVE 200 BUCKS TO SPARE,KY IF I HAVE 200 BUCKS TO SPARE,KY CAN EITHER PAY OFF MY CREDIT CAN EITHER PAY OFF MY CREDIT CARD DEBT AND START SAVING IN A CARD DEBT AND START SAVING IN A ROTH IRA, WHAT WOULD MY CHOICE ROTH IRA, WHAT WOULD MY CHOICE BE? BE? >> YOUR CHOICE THERE IS TO PAY >> YOUR CHOICE THERE IS TO PAY OFF YOUR CREDIT CARD DEBT.
OFF YOUR CREDIT CARD DEBT. >> IF YOU DON’T HAVE MUCH MONEY >> IF YOU DON’T HAVE MUCH MONEY YOU MAY BE BEHIND ON YOUR CREDIT YOU MAY BE BEHIND ON YOUR CREDIT CARD PAYMENTS, AND YOUR INTEREST CARD PAYMENTS, AND YOUR INTEREST RATES ARE 15, 18%. RATES ARE 15, 18%. THAT’S A GUARANTEED RETURN. THAT’S A GUARANTEED RETURN. WHEN YOU PAY OFF YOUR CREDIT WHEN YOU PAY OFF YOUR CREDIT CARD DEBT, YOU’RE GUARANTEEING A CARD DEBT, YOU’RE GUARANTEEING A FANTASTIC RETURN. FANTASTIC RETURN. >> WHAT IS THE ONE SMALL THING >> WHAT IS THE ONE SMALL THING YOU WOULD TELL OUR VIEWERS YOU WOULD TELL OUR VIEWERS BEFORE WE GO? BEFORE WE GO? >> HERE’S WHAT’S REALLY >> HERE’S WHAT’S REALLY IMPORTANT. IMPORTANT. MANY PEOPLE HAVE ADVICE FOR ALL MANY PEOPLE HAVE ADVICE FOR ALL OF YOU.
OF YOU. SOMETIMES THAT ADVICE IS GOOD SOMETIMES THAT ADVICE IS GOOD FOR THE PERSON GIVING THE FOR THE PERSON GIVING THE ADVICE, AND SOMETIMES IT’S GOOD ADVICE, AND SOMETIMES IT’S GOOD FOR THE PERSON RECEIVING IT. FOR THE PERSON RECEIVING IT. MY ADVICE IS THIS, PLEASE DON’T MY ADVICE IS THIS, PLEASE DON’T DO ANYTHING THAT YOU DON’T DO ANYTHING THAT YOU DON’T UNDERSTAND. UNDERSTAND. IT IS BETTER TO DO NOTHING THAN IT IS BETTER TO DO NOTHING THAN TO DO SOMETHING YOU DO NOT TO DO SOMETHING YOU DO NOT UNDERSTAND BECAUSE SOMETIMES YOU UNDERSTAND BECAUSE SOMETIMES YOU CAN DO SOMETHING AND IT BLOWS CAN DO SOMETHING AND IT BLOWS ALL YOUR MONEY, AND SO IF IT ALL YOUR MONEY, AND SO IF IT DOESN’T FEEL RIGHT TO YOU, YOU DOESN’T FEEL RIGHT TO YOU, YOU HAVE TO TRUST YOURSELF MORE THAN HAVE TO TRUST YOURSELF MORE THAN YOU TRUST OTHERS.
YOU TRUST OTHERS. IT’S YOUR MONEY, AND WHAT IT’S YOUR MONEY, AND WHAT HAPPENS TO YOUR MONEY IS GOING HAPPENS TO YOUR MONEY IS GOING TO DIRECTLY AFFECT THE QUALITY TO DIRECTLY AFFECT THE QUALITY OF YOUR LIFE, NOT MY LIFE. OF YOUR LIFE, NOT MY LIFE. NOT ANYBODY ELSE’S LIFE, SO IF NOT ANYBODY ELSE’S LIFE, SO IF YOU REALLY WANT TO BE POWERFUL YOU REALLY WANT TO BE POWERFUL IN LIFE, YOU HAVE TO BE POWERFUL IN LIFE, YOU HAVE TO BE POWERFUL OVER YOUR OWN MONEY. OVER YOUR OWN MONEY. >> THAT’S GOOD ADVICE. >> THAT’S GOOD ADVICE. IN SOME CASES FINANCIALLY DOING IN SOME CASES FINANCIALLY DOING NOTHING IS BETTER THAN MAKING A NOTHING IS BETTER THAN MAKING A CHOICE TO YOUR DETRIMENT. CHOICE TO YOUR DETRIMENT. >> NEVER TALK YOURSELF INTO >> NEVER TALK YOURSELF INTO TRUSTING ANYONE. TRUSTING ANYONE. YOU WALK INTO A FINANCIAL YOU WALK INTO A FINANCIAL ADVISER’S OFFICE AND THEY FEEL ADVISER’S OFFICE AND THEY FEEL LIKE THEY KNOW WHAT YOU’RE LIKE THEY KNOW WHAT YOU’RE DOING.
DOING. THEY MUST KNOW, YOU DON’T KNOW THEY MUST KNOW, YOU DON’T KNOW AND YOU BELIEVE THEM. AND YOU BELIEVE THEM. SOMETIMES THEY GIVE GREAT AED SOMETIMES THEY GIVE GREAT AED VICE AND SOMETIMES THEY GIVE VICE AND SOMETIMES THEY GIVE ADVICE THAT’S NOT SO MUCH. ADVICE THAT’S NOT SO MUCH. >> THAT STUFF’S TRUE IN >> THAT STUFF’S TRUE IN ANYTHING, RIGHT? ANYTHING, RIGHT? >> WHEN YOU THINK ABOUT IT, >> WHEN YOU THINK ABOUT IT, SAVANNAH, YOUR MONEY AND YOUR SAVANNAH, YOUR MONEY AND YOUR LIFE ARE ONE. LIFE ARE ONE. WHO YOU ARE AND WHAT YOU HAVE IS WHO YOU ARE AND WHAT YOU HAVE IS ONE.
ONE. IT’S YOU’RE THE ONE WHO EARNS IT’S YOU’RE THE ONE WHO EARNS IT. IT. YOU’RE THE ONE WHO INVESTS IT. YOU’RE THE ONE WHO INVESTS IT. YOU’RE THE ONE WHO SAVES IT, AND YOU’RE THE ONE WHO SAVES IT, AND YOU’RE THE ONE WHO’S GOING TO YOU’RE THE ONE WHO’S GOING TO LIVE. LIVE. >> WE’LL JUST GO TO YOU. >> WE’LL JUST GO TO YOU. YOU’RE OUR TRUSTED SOURCE. YOU’RE OUR TRUSTED SOURCE. >> COME ON, EVERYBODY, COME JOIN.
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Retirement Planning Checklist
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Presenter 1>> Welcome to the CalPERS video Retirement Planning Checklist. In this session,  we’re going to discuss a list of things you should be taking care of as you get ready for retirement. Before we get to the main presentation, let’s take care of some housekeeping items. To  provide you with a future reference, and make your note taking easier,  we’ve provided a presentation learning guide. You’ll see the link to the learning guide in  the YouTube description box. Please note that due the large number of participants,  although the chat feature is active, we won’t be able to respond to member questions during  this presentation. If you have any questions, please contact us directly. Here’s the agenda for today’s presentation. We’ll start with things you’ll want to do one or more  years away from retirement, and gradually work our way up to retirement and beyond. As we go through today’s presentation, we will reference several CalPERS forms and publications  that you may be interested in, so here’s where you can find them.
On our homepage at CalPERS.ca.gov,  you’ll find the Forms & Publications column. Select the View All link at the bottom of the  list to access a complete list of forms and publications which are shown in alphabetical  order. You can also filter by whether you’re an active member or a retiree. One of the publications you’ll want to review as you prepare for your retirement is Planning  Your Service Retirement, Publication 1. It has a great deal of good information,  including a checklist similar to what we’ll be reviewing here today. There is also a Retirement Planning Checklist on our website. Select the Active Members tab,  then find the Resources column and select the Retirement Planning Checklist link. Let’s start by looking at what you need to do about one or more years prior to your retirement. We encourage you to watch our Planning Your Financial Future video series  available on the CalPERS YouTube channel. Financial security helps  ensure you have enough money for the retirement lifestyle you want. Use our Planning Your Financial Future Checklist as a guide through this video series.
For those who qualify for Social Security, visit our Social Security and Your CalPERS Pension page  to learn how your Social Security benefits may be affected by your CalPERS retirement. If you haven’t already done so, sign up for a mySocial Security  account at www.ssa.gov/myaccount. Here you can access your statement,  review estimates of future Social Security retirement benefits, and more. The service credit you earn is part of the calculation for your retirement benefit.  Review your most recent account information in myCalPERS to make sure your service credit is  accurate. You can also find a link to your most recent Annual Member Statement here. If you are  a year or more away from retirement, use the Retirement Estimate Calculator in your myCalPERS  account to estimate the amount of your pension and begin determining when you want to retire. It’s important to be prepared when you decide to take the big  step into retirement.
To get answers to most of your retirement questions,  the Planning Your Retirement class is a great one to take if you are a year or even further from  retirement. Sign into myCalPERS and select Classes under the Education tab to enroll. If you think you may be eligible to purchase service credit, the first thing you should  do is review the appropriate publication which provides the types of service credit available,  eligibility for each type, and what is needed to submit the request. The publications are  A Guide to Your CalPERS Service Credit Purchase Options, or for military time,  the Military Service Credit Options publication. The publications can be found on our website. To find the cost of any available service credit purchases. First,  log in to myCalPERS, go to the Retirement tab, select Service Credit Purchase,  followed by the Search for Purchase Options button. You can also find the Service Credit  Purchase link in the service credit box on the myCalPERS home page. Next, complete a series of  questions to help determine which service credit purchase types you may be eligible for.
Finally,  the system will return the cost for any available service credit purchase options,  at which point you can begin the purchase process if you choose to. If you have a community property claim on your retirement account because of a legal separation  or divorce, you must provide us with a copy of an acceptable court order that resolves the claim.  It’s important to understand that a hold is placed on your account and retirement benefits cannot  be paid until your community property issue is resolved. However, you shouldn’t wait to  submit your application to retire.
Waiting may affect the retirement date and other benefits. If you’ve been awarded a separate nonmember account, you may be eligible to retire and  receive a monthly benefit for this as well. For more information, review our publication  A Guide to CalPERS Community Property. You also may want to contact a financial planner  for assistance with coordinating your CalPERS benefits with you overall retirement planning.  Please remember that CalPERS does not provide financial planning services. Next is nine months prior to retirement. If you're also a member of another California  retirement system other than CalPERS, there are steps you need to take to ensure you receive all  the benefits you’ve earned from each system. Reciprocity refers to an agreement between  CalPERS and many other California public retirement systems that allow members to  move from one retirement system to another within a specified time limit and possibly  retain some valuable benefit rights such as your highest average pay in the calculation  of your retirement. Read our publication, When You Change Retirement Systems, for more information. If you have Social Security or other non-CalPERS income coming later after retirement, you might  want to temporarily increase your monthly CalPERS income until those benefits begin.  See if a temporary annuity is right for you by reviewing our temporary annuity publication. Moving on to five to six months before you retire.
You should become familiar with the information  needed to apply for retirement in the publication A Guide to Completing Your  CalPERS Service Retirement Election Application, which is Publication 43. Begin to gather and make copies of the required documents you’ll need, such as a marriage license,  or a birth certificate for a lifetime beneficiary. Refer to the Service Retirement Election  Application for a complete list of required documents. If you apply for retirement online,  you’ll be able to upload your documents into the system. If you choose to mail in the documents,  only send us copies, never send originals. Always include your Social Security number  or CalPERS ID on every document you submit. If you don’t know your CalPERS ID number,  you can find it in your myCalPERS account under the My Account tab in the Profile section. Although an appointment isn’t required, if after taking the Planning Your Retirement class, you  have specific questions about your own situation that weren’t answered during the class, you can  schedule an appointment by logging on to your myCalPERS account. You’ll find the Appointments  link under the Education Resources tab. You determine how you want your taxes  withheld.
We can’t offer tax advice so you should check with your tax consultant  or attorney to find out about the taxability of your overall retirement income. You can also find  more information about your federal taxes on the Internal Revenue Service website at www.irs.gov. For your California taxes, you can go to the Franchise Tax Board website at www.ftb.ca.gov.  If you plan on moving out of state, you are not required to pay California State taxes. However,  you should check with the state you’re moving to find out what taxes they require and how they are  to be paid.
You cannot have out-of-state taxes taken out of your retirement check. And then three to four months prior to retirement. You can apply for service retirement online,  in person, or by mail. You can submit your retirement application no more than 120 days  prior to your retirement. To file electronically, log in to myCalPERS. Go to the Retirement tab,  select Apply for Retirement, and follow the steps for submitting your application and  required documents online to CalPERS. We also have a video on our YouTube channel titled Your Online  Service Retirement Application that will take you through the steps for completing and submitting  your retirement application online. There are a number of benefits to filing for retirement  electronically. Easily and securely submit your application at your convenience, 24 hours a day.  You can leave the online application and return at any point to complete it. Prior to submission,  you can review and edit your information.
You’ll receive confirmation that your application has  been successfully submitted. You can upload additional required documents online. And,  you can use the Electronic Signature to eliminate the notary requirement for the member signature. If you are unable or do not wish to complete your Service Retirement application online,  you can submit the paper application at one of our regional office or by mail. If you  bring your application to one of our Regional Offices, both you and your spouse’s or domestic  partner's signatures can be witnessed by one of our representatives. If you choose to mail it in,  you must have you and your spouse or domestic partners signatures notarized. If you’d like  assistance filling out your application, you can enroll in our class Your Retirement  Application and Beyond. This class is available online through your myCalPERS  account and is also taught by our regional office team members in virtual classes,  and also in-person throughout the state. Find the next available instructor-led class in your  area by logging in to your myCalPERS account or by calling us.
Be sure you keep a copy of  all forms and supporting documents for your records and future reference. Apply timely.  Any delay in submitting your application could result in a delay of your first retirement check. If you have a deferred compensation plan such as a 401K, 457, or 403b, check with your plan  administrator regarding distribution of your funds. Contact your health benefits officer or  personnel office to determine your eligibility for continuation of health, dental or vision coverage  into retirement. If applicable, check with your credit union, employee organization, insurance  plan, or others to see if certain types of payroll deductions can be continued into retirement. So the next question is, what happens after you retire? As soon as your service retirement application is received, CalPERS will generate an  Acknowledgment of Service Retirement letter.
This letter will confirm the retirement  date you selected, your date of birth, your beneficiary’s date of birth, if applicable,  the retirement option you selected, age at retirement, and the retirement formula along with  other valuable information. About two weeks prior to your first check being issued, we’ll send you  a First Payment Acknowledgement letter providing you with the date of your first retirement check,  the gross amount you can expect to receive, and important income tax information. You’ll  also receive an Account Detail Information sheet that provides what was included in your retirement  calculation based on the payroll and service credit information posted in your account at the  time your retirement was calculated. Finally, if you have CalPERS health coverage, you’ll receive  two letters. The first letter will notify you that your health benefits as an active employee have  been cancelled, and the second letter notifies you that your health coverage as a retiree has been  established. You should keep all these letters, along with other CalPERS information you may have,  with your important financial papers. If you expect to have any adjustments  to your retirement payment, you should allow four to six months for all final payroll to  be processed for adjustments.
An example of an adjustment would be a change in service credit  or final compensation that was reported after your initial benefit was calculated. If after  six months you haven’t received an adjustment that you think you’re due, you should send us  a message through your myCalPERS account or give us a call at 888 CalPERS, which is 888-225-7377. You can find a list of mailing and direct deposit dates on our website. If you applied timely,  in most cases you should receive your first retirement check around the first part of  the month following your retirement date. If you did not retire on the first of the month,  your check will cover the period from your retirement date to the end of the month.  After that, your check is mailed or direct deposited around the first of the month. This video will stay posted here on YouTube, so you can come back and catch what you might  have missed. All our previous videos are also available on our YouTube channel.
You’ll also  have access to the link for the learning guide. Our presentation today was intended to provide  you information on some steps you should be taking leading up to retirement. Please note that CalPERS  is governed by the Public Employees’ Retirement Law. The information in this presentation is  general. The Retirement Law is complex and subject to change. If there is a conflict  between the law and the information presented in this presentation, all decisions will be based on  the law. Later today, you’ll receive an email with a short evaluation. Please answer all the  questions as it’s important for us to get your feedback to help us improve these presentations.  Thank you for taking time out of your day to attend this presentation and have a great day.
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