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Tim Tremblay of Tremblay Financial Services Discusses Interest Rates

[Music] higher interest rates may be bad for financing a home but there is a silver lining the most challenging part of investing and retirement planning has always been balancing asset growth with asset protection to protect assets we typically need to lower Market risk and to achieve growth we need to increase risk now with higher interest rates we can actually do both there are solutions positioned in ways we haven't seen before joining me to talk about this is my guest Tim trembl with tremble Financial Services in Santa Barbara California uh Tim let's start out with these strategies how do these things work well you know it's it's interesting I had a client come in and talk to me about this investment that's in the market but there's no risk on the downside and I said you know that doesn't sound right you better bring that in so I can take a look at it so he brought in a fixed indexed annuity with Life USA and as I looked at it I thought this is a great idea they're using call options to get Market driven returns with no risk on the downside and that was almost 26 years ago and since that day we've been using fixed indexed annuities as the foundation for our asset allocation for our clients at Tremblay financial and it's real simple how it works it's with a call option there are two types of options puts in calls the option Market is a huge Market you have options on stocks on Futures on indices and what the financial services companies the insurance companies are doing they're just looking at a call option on the market and so with this investment it can only go sideways or up never down and what I like to do when I show my clients how this works is is look at the worst 10-year period that we've seen in the market since the Great Depression we call it the L decade and that would be 2000 to 2010 if you got into the S&P 500 Blue Chip stocks at the at the beginning of that decade in 2000 we were at a record high the dots had just brought us up there and then over the next 3 years we saw the Melt down to the Dooms we saw 911 Afghanistan Iraq if you had $100,000 in Blue Chip stocks at that time three years later you'd have 51,000 and then over the next four years we saw the market go up very nicely fueled by collateralized mortgage obligations which had a risk that we really weren't aware of at that time and we saw the market go back to a record high just a little higher than where we were in 2000 and of course the Great Recession took place at that time we saw if you had a $100,000 in Blue Chip stocks in 2008 a year later you lost 60% of your portfolio small caps NASDAQ other indices and and positions were even more dramatic and then it came back but at the end of that 10-year period from 2000 to 2010 in Blue Chip stocks you would have been down down 20% now with fixed indexed we are very grateful to have that as a foundation for our clients those first three years as we saw a 50% decline you didn't lose a dime and then you don't have to make up losses with a fixed index and as the market moved up over the next four years our call options took us to a 40% profit 2008 then of course when the Great Recession hit you saw the markets decline dramatically we stayed at that 40% profit through the rest of that decade so as you look at all the other asset classes during the worst 10 years that we've seen since the Great Depression the fixed indexed annuity was the best performing asset that we had and we can use the word safe with it and you know Scott I think that's what I like to show folks if you show folks how the markets have done when when things are going great just about anything is going to look good but how does your investment look when you're going through one of the most difficult times that we've had since the Great Depression so is this a good time to consider maybe refinancing an existing annuity you know it it absolutely is Scott when we look at at where these fixed index annuities have gone over the past 25 years there's been dramatic changes those early life USA policies in order to get the profits that you had with those Investments you had to annuitize over 10 years that's no longer the case the liquidity was 5% per a 5-year period and you had to hold it for 10 so you didn't have the liquidity today we have fiveyear 7year 10year in fixed index annuities and you don't have to annuitize they contracts they're they're much better we have a whole wide range of indices that we can choose from from your participation with higher interest rates will be better today than what we've seen in the past so to answer your question today is the best time that we've seen in the past 25 years to be looking at fixed indexed annuities and and if you're out of surrender with an old annuity it might be a variable annuity and you've heard a lot of bad press on variable annuities uh they have management fees from the insurance company the underlying mutual funds have management fees you have risk a principle with the variable annuities so that isn't for all people and you have to understand there's a risk the fixed annuities based on interest rates we haven't seen a decent interest rate in 15 years and we've just seen short-term rates come up long-term rates we have this inverted yield curve are still not looking good for us so the fixed indexed annuity continues to be in our opinion one of the best or the best place for your safe money in your asset allocation and it's important to look at what you have now in the annuity Arena and seeing if we can improve that and put you in a much better position and for someone considering the purchase of a fixed index annuity what question should they be asking well it's important that you understand that it's a long-term investment most of them are longer term uh the shorter term ones won't give us quite the return that you will see with the longer term fixed index you have to understand the liquidity that you have with those fix fixed indexed annuities and then it's important to look at how can you get your return what kind of index is going to be available to you as an investor and and the company that you're working with is so important it's not just the return but the service that you receive from these insurance companies is so important so there's a number of different aspects that are very important for investors to look at as they begin their Journey with a fixed index or continue it in a better way uh and it's something we take a lot of pride in at tremble Financial we're going to help our clients not only have the asset allocation to get them where they want to be in in retirement but when you look at each of the individual Investments That We're choosing for that asset allocation we're going to find the very best one for you that's Tim tremble in Santa Barbara California thanks for watching retirement News [Music] online

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Retirement Tips You Can’t Afford To Miss!

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

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Why Some Retirees Succeed and Others Live in Worry – 5 Retirement Truths

I want to share one of the most valuable pieces of retirement advice that I've ever heard if you're thinking about your retirement and you're wondering if you're doing the right thing or think that you should be doing something different or if you're just worried about all the things going on right now whether it's the economy or the markets or the value of your accounts be sure to watch this video because I'm going to share the retirement truths that every retiree goes through and it's these things right here we're going to cover today and every retiree goes through it and it they experience this in retirement so it's going to go over this and then also what to expect in retirement and then how to give yourself the best chances of maintaining your lifestyle in retirement as well now the negative of these retirement truths that we're going to look at is that many of them lead to increased uncertainty or worry about your retirement one of our goals though as we're thinking about it is really the opposite of uncertainty or worry in retirement it really should be more about confidence right the next years really all the way up until you pass away wait these are the the magic ears these could be the best years of your life and I know that because there's an actual study a research study uh proving this so let me pull that up really quick and show you the results and I'll link to it below people were asked to score their life satisfaction from zero to ten where 10 is the best possible life and then zero is the worst possible life and this is really just the average score by age and I thought it was encouraging to see that life satisfaction tends to increase as you can see as we get older and then it tends to Trail off as we get older but really the area the the period of time we want to focus on is that this is the magic time and we know this to be true as well because we've helped hundreds of pre-retirees move into retirement with confidence and excitement and these were the people who were coming to us that were feeling somewhat unsure or not 100 confident with their money plan and our firm streamline Financial has been around for 24 years and we've made it through quite a few bad Market periods with our clients and by the way if I haven't met you yet I'm Dave zoller and I own streamline Financial with Tim and Luke and Sean and if you're working with an advisor now that's mainly focused on investments and investment planning but doesn't talk about these key retirement strategies like the tax efficient withdrawal planning and income planning or just tax reduction overall feel free to reach out to us through the website now we don't always have time but I'll get back to you either way so let's get into this first truth in retirement it will be common to have that thought of maybe I should be be making a change or should I be doing something different it'll be normal to feel this way in retirement especially when you see the news or you're listening to friends talk about their finances there's this feeling or this thought of really making us doubt our current plan which causes some people to make more emotional decisions instead of making smart financial decisions and a good way to avoid this is really to avoid this feeling is by having an understanding of your plan which really leads to more confidence with what you're doing and having a plan for both the good times and also the bad Mark of times so that you know that you're prepared for either one of those and I'll give you some ways to achieve this coming up in this video now on to the second thing that comes up in retirement that we just have to be prepared for is we need to expect bear markets right you've most likely lived through a lot of them already and really in retirement though they feel a little bit different usually worse but because of the frequency creating a plan with bear markets in mind and really big Corrections built into the plan is a smart thing to do that way you don't have to worry when they eventually come now if you're not sure how to model out these various what-if scenarios or bad Market scenarios for your plan then you may want to talk to a cfp or check out my favorite retirement income planner below this video you should see a link to it it's one of the best consumer facing planners that I've seen and it doesn't cost thousands of dollars like the ones that we use for our clients the next thing to bring up is for pre-retirees who are close to stopping their wage especially if that's during bad markets they may think should I work a little bit longer maybe just one more year to kind of make it through this this difficult period we actually had a client call us up about five months ago and uh no she was five months into retirement and she said something like it seems like so much bad news is out there and what's going on with the markets I'm wondering if I it would have been better if I should have just kept working so we reviewed her plan and because we built in to her plan this expectation of bad markets everything looked great and and really the only reason to keep working would be if she really enjoyed this sort of work that she was doing and it brought her some some purpose but she didn't so it was great it was great confirmation that she was still on the right track so if this sounds like you take a look at another video I recorded I'm gonna either link on this screen or it'll be below and it gives a few real examples of what working an extra year might look like in a financial plan the next thing to know is that no one really knows what's going to happen next it seems like everybody has a prediction on TV or YouTube or at the dinner table with family or with friends and no one really knows what is definitely going to happen we know this uh in a logical way because you know there's that saying if you put 10 economists in the room together and they come up they need to come up with a conclusion they'll come up with 12 of different answers when they walk out knowing that it's important to prepare your investment plan for that four economic Seasons that we may go through in the future since we don't know which one we're going to go through next so just as as an example you've seen it before the four economic seasons are higher than expected economic growth or lower than expected economic growth and then higher than expected inflation or lower than expected inflation and there's asset classes that can do well in each one of those now again we don't know which way we're headed but having asset classes and each one of those potential Seasons that could be beneficial now that's just my opinion and really it's for all of this talk to your own Financial professionals before doing anything like this now on to the next one which really has more to do with human psychology than investment strategy and then after that I'll share the the really the most helpful piece of advice that I've heard related to retirement planning but if you'd like this so far please click on the the like button and and maybe this video can help somebody else going through the same things that that you're looking forward to so the next truth is in retirement we may have a tendency to compare ourselves to others the grass is always greener on the other side of the fence really throughout life that's we've got that tendency to compare it to others but it can harm us in retirement too if we do a video on this channel that mentions a dollar amount as an example we don't want that to really make you feel better or feel worse about your current situation because you know we help high net worth families at streamline Financial we sometimes mention big numbers but we don't want it to be about the numbers we really want to communicate just the principles and the strategies that can can really be applied to to anybody's finances and there's always going to be people with more than us and then there's always going to be people with less than us and the one who wins is the one who's content and at peace most at peace with their current situation you know that saying if I want to be able to practice being content with a little and I want to be able to practice being content with a lot and and you know healthy competition that's okay but comparing ourselves to someone else because uh you know if it causes us a feel of lack or less than that can hurt our retirement plans because that leads really back to that first point that we talked about in uh in this list of feeling like we should be doing something different for example if we see a guy on the internet and he's investing a certain way or he's deciding he's changing up his entire strategy um because of what's happening with the economy then that may cause us to feel like we should be doing something different and then start to increase the emotional level of uh of our decision making instead of staying to strictly logical or financial levels but again it's a normal feeling to feel that worry or fear or anxiety um with what's happening during during current periods but one of the most helpful pieces of advice that I've heard that we can apply to retirement planning is really the difference between those two words fear and anxiety knowing the difference between those two is actually very very helpful as we're planning retirement and talking about money that is if we want to feel better about what we're doing right now when we think about fear and anxiety we might think of them as being the same thing but actually they're completely different things and let me just pull up these two definitions if I can really quickly fear is a caution over a real and present danger and then anxiety is a worry over an imagined future danger now fear if we've got something right in front of us then it's obviously a very helpful tool for us as humans anxiety though is not always a helpful tool as as we're trying to process things partly because these anxieties there's nothing we can do to control or influence them you may have seen this drawing from Carl Richards before about things that matter and then things I can control here's a place to focus and then another way to look at it is we actually sent this to clients not too long ago on a video of what you can't control and what you can control so we can't control the markets and inflation and what they're doing with interest rates or what's happening in the news or the world or tax laws or the elections but a lot of these things actually do relate to things that we can control for instance you know markets are inflation or interest rates your portfolio allocation you can control that you can control when to pay taxes when it's related to in investing you know as we're talking about Roth conversions or the the costs the tax cost tax drag on some of the portfolio and not to get too nerdy about these things but two of the biggest things that we've seen is this idea of not controlling the news but what we can control is news consumption we've seen a big shift with uh some people who instead of someone who wants to consume the news they switch from TV news to reading news where you have a little bit more control of what's coming at you versus TV is just the next thing is coming at you if you know what I mean I don't know if that's if I if I'm explaining that the right way but back to the this video all the things that we mentioned before earlier here um a lot of these can be anxiety-inducing things as well right the severity of a bear Market or not being able to predict what's going to happen next in the world or comparing ourselves and doubting our plan or thinking that we don't have as much as as we wish we had when it comes to to money or the you know what if this happens and what if this happens how is that going to impact my plan and that can lead that sort of thinking can lead to paralysis and really no action being taken but what if you had a plan that was built in to show those different what-if scenarios so instead of the unknown future danger you're able to get more concrete scenarios in the plan as a result that's what I would recommend once you get get it out in the open then it becomes a lot less scary we both know that so either find a great certified financial planner who can show you that and show you the what-if scenarios or check out the the DIY planner or a different planner that helps you put in those what-if scenarios as well so it becomes less scary so don't forget anxiety is it can be the thief of Dreams it takes you away from enjoying the the present moment and it stops you from even taking the right action to make things better in the future because it really just makes you only focused on on the negative as you're you're moving through life that video that I mentioned earlier is called why delaying retirement might not be a good idea if you're pre-retirement and you're thinking you want to work a little bit longer because of what's going on take a look at that one coming up next or below and then I'll see you in the next video take care foreign [Music]

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LPL Financial: A Wealth of Options

Your business is as unique as you are. That's why we design customized solutions for advisors and enterprises and offer a range of business models that meet your specific needs, discover a wealth of options at LPL.

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How To Retire At 30 Living Off Investments

in order to live off of
your investments completely. And I know that the title of this video may sound crazy about retiring by 30, and there are a lot of people
out there selling a pipe dream of you can retire by 30
as long as you invest in this course, or go buy real estate and while that may work for some people I'm not here to sell you guys a course or to pitch you on any
kind of product like that. What we're going to
simply talk about here is how much money you need to have invested in order to live off of your investments and essentially not have
to work to earn your money. And believe it or not, there's
actually countless people out there who have in fact
retired as early as 30 years old, by following this exact strategy
that I'm going to outline. So if this idea of retiring early and not having to work for your money is something that interests you. What I want to ask you
guys to do is go ahead and drop a like on this
video just show your support.

I really do appreciate
that as it helps out with the algorithm and allows this video to get shared with more people. But what we're going to look
at in particular in this video is something called the 4% rule, and that essentially
shows you just how much money you need to have set aside, in order to live
off of your investments. Now you can in fact live off of different types of investments like real estate or the stock market for
example or a business that's providing income for you. But what we're going to use in this video as an example is a passive
stock market investment, and we'll show you exactly
how much money you need to have invested in order
to live off of that income. So the goal here with this
strategy is to simply invest your money and have a large
amount of money invested and then you would
essentially be living off of the interest income or
the growth of that money without touching the principle.

And as I'm sure you guys can imagine if you're not touching the principle or your initial investment, then your money could
foreseeably last forever. Now, the sooner you're able to retire is all based on how much
money you're able to save up and how little money you are
spending each and every month, and there's actually a
whole movement of people that are following this
exact strategy, and it's something out there called FIRE, and FIRE stands for financial
independence retire early. And there's a lot of
people who are doing blogs and videos and all kinds of
stuff about this concept, and there are countless
examples out there, of people who have retired
as early as 30 or even less. By following these strategies. Alright guys so there's
basically three steps you have to follow in order to do this, and as I'm sure you can imagine, step number one is to be frugal or to spend as little money as possible, because ultimately what
you're looking to do is save and invest enough
money that the interest or the dividends, or
whatever the growth is pays for your monthly living expenses.

And as I'm sure you guys can guess if your monthly expenses
are $6,000 versus $3,000, you're going to need a
lot more money invested to cover those expenses. So being frugal and saving
as much money as possible is actually going to serve
two different purposes here. Well, number one, the
less that you're living on the more of your paycheck
you're able to save up, and the more of your paycheck
you're able to save up, the more you're able to
contribute to that freedom fund, which will eventually be paying for all of your living expenses. And then second of all by spending as little money as possible
every single month, you actually don't need
to save up as much money to potentially live off of the interest or the growth of your money.

And we're going to go over
those exact numbers right now. Alright guys so step number two
that you have to follow here is going to be a tough one, but that is going to be saving 50 to 70% of your take home income and again, if you're looking to
retire by 30 years old, let's say you want to work from 20 to 30, and then not work for
the rest of your life, you're going to have to take
some drastic actions here.

And that is why you need to live off of a microscopic amount of money. And that's why step number
one is so important, by cutting down as much as possible on those monthly expenses. So people who are trying to do this, you're not going to see
them driving brand new cars, you're not going to see
them going on vacations, they're probably going to be,
you know, eating canned beans and doing campfires in the
backyard as summer entertainment. Not that there's anything wrong with that, but they are literally spending
as little money as possible, because they're focusing
on the long term picture of what they are trying to do. So people who are following
this FIRE movement are often aiming to save 30
times their annual expenses, and that will allow them to
withdraw about 4% per year without basically touching that principle and that is where that
4% rule comes into play.

And that is basically where you're able to draw from an account about 4% per year, and over a long period of
time based on the growth of that account and those investments, it shouldn't be chipping
away at the principle which should in theory
give you unlimited money. So what you're aiming
to do here is to lower your monthly expenses as much as possible.

Figure out what it costs
you to live per year, multiply that by 30, and then
save up that amount of money by saving 50 to 70% of your
paycheck every single week or month, or however often
you are getting paid. Alright so now the question
you guys have been waiting for, just how much money do
you need to have saved up and invested to live off of that money following the 4% rule. Well if your annual expenses
are $20,000 per year, they would recommend having 30 times that amount of money saved and
invested, so $600,000. If your annual expenses were $35,000, that number becomes 1.05 million. If you're somebody
spending $50,000 per year on your living expenses
you would need to have $1.5 million saved and invested,
and for the final figure here, if you spent $100,000 per
year on cars and housing and food and all of that,
you would need to have about $3 million to successfully
follow this strategy.

So I'm sure this goes without saying guys, the best way to follow the strategy and to reach that retirement as quickly as possible is going to be
to keep your monthly expenses as low as possible. And just to put it in
perspective for you guys, every additional $100
that you spend per month, if you follow this is
an additional $36,000 you need to have set
aside in that freedom fund to support that $100 of monthly spending. So if you're serious
about this and you want to retire at 30, or even younger, you are spending literally as little money as humanly possible. Alright so the final step
to following this strategy is going to be passively
investing in the stock market. So most people following this strategy are actually following
the Warren Buffett style of passively investing in index funds. And if you're not familiar,
index funds are basically a way for you to have diversified
exposure to the stock market. Where you're not essentially
picking what stocks are going to outperform,
you're just passively owning the entire market.

So people following this strategy are not out there trying
to beat the market, they are not stock
traders or stock pickers they simply passively invest
in these low fee index funds, one of the most popular ones being VOO or the vanguard 500 fund. And essentially what you are doing, is buying a small piece of the 500 largest publicly traded companies out there, and all the different
dividends those companies pay are all collectively put together, and then you earn a quarterly
dividend from that ETF.

And over the last hundred
years or so the stock market, on average, has returned
about eight to 10% per year. So if you were only drawing
4% from that account, based on historical data, you should never be
touching that principle over a long period of time. And that is how you would
be able to live off of 30 times your annual income, if you save that money and invest it. Now that being said that
is the perfect segue into the sponsor for this
video which is Webull. So if you guys are
interested in getting started with investing in the stock market, this is a totally commission
free broker out there, meaning you're not paying
any fees to please trades with them and you can
purchase the Vanguard 500 ETF that we're talking about in this video right on that Webull platform, and not only that, they're
willing to give you up to two completely free stocks just for opening up an account with them. Number one, if you open the account, you're going to get a free
stock worth up to $250, and then when you fund the account, you'll get an additional
stock worth up to 1000.

So if you do the math there, that is two completely free stocks worth up to $1,250. Now I am affiliated with Webull, so I do earn a commission in the process if you use my link, but
if you guys are interested in grabbing two completely free stocks that is going to be down
in the description below. So finally, the last
thing I want to do here is to put all of this together, and go through a real
example of how you could in fact follow this strategy and even retire by 30.

Now again, this is going to
require some very drastic saving because essentially you're trying to work for about 10 years of your life and then not have to work
for the rest of your life. So most people will never
be able to accomplish this, because of the amount of
sacrifice that is required, with that being said, let's go ahead and run
through the numbers now. So let's say you're earning
a salary of $75,000 per year from your job, and ideally,
you don't have any, you know school loans,
student loans, medical bills, or anything like that. So you haven't gotten
sucked into the consumerism and you don't have like a brand new car so your expenses are as low as possible.

And I know this sounds like
you know theoretical situation, but this was actually
about the same situation I was in, when I graduated
college I was 20 years old, now I was making about $68,000, so a little bit less, but I had no debts, I had no car payment,
and so I was somebody who could have potentially
followed this strategy. So after you pay your
taxes, your take home pay is going to be around $56,250. Now we know already in
order to pull this off, you need to save 50 to
70% of that take home pay in order to actually build up enough money to live off of that income. So we're going to assume
you are saving 70% of that take home pay. So you would need to live off of 30% of that post tax income, which
amounts to just over $16,000, or around $1400 per month.

Now, is that possible? It absolutely is. Is it easy? Absolutely not, you're certainly not going to be going out to the
bar and buying beers or going out to dinner,
you're probably going to be living in a tiny apartment driving an old car and eating at home for breakfast, lunch, and dinner. But if that type of
sacrifice is worth it to you for the long term picture, it is something you may
be willing to do yourself. So each year you would
be saving and investing a staggering amount of money, which is 70% of your take home pay
or just over a $39,000. And that is how you would
be able to pull this off, and assuming you kept that
cost of living the same at around $16,000, just over 16,000. your freedom number, or 30
times your annual expenses, would be just over $506,000. So, how long would it take
you to save up that money? Let's go ahead and answer that now.

Well if you took that
$39,375 per year of money that you are saving and
invested in the stock market, earning 8% return, and
as we said, historically, it's an eight to 10% so we're going to go on the conservative side, well in 10 years at 8%
return career you would have $570,408.40, meaning you could then, if you kept those living
expenses the same, following that 4% rule, not have to work for your
money past that point.

And just to circle back
guys what this really comes down to is the level
of sacrifice involved. Are you really willing to live
off of about $1400 per month, or do you want to have vacations and going out to get dinner
and things like that? So it's not people who are doing this that are out there traveling and dining it's people that are living
as frugal as possible and finding enjoyment
in other areas of life other than just, you know,
spending money on dining and things like that. Now, is this a strategy I
would personally follow? Probably not because I
am one of those people that enjoys traveling, I enjoy dining, and I do spend a little bit
more than the average person, so my freedom number would be
multiple millions of dollars, but instead I follow the
strategy of earning as much as possible and saving a
lot of that earned money, and then eventually allowing
that to supplement my income by having that interest
or the growth of my money paying for a lot of
those things that I want.

And believe it or not,
guys, there are honestly countless people out
there that have followed this exact strategy and
retired at 30 or less. One of the most well known people being Mr. Money Mustache, he has a whole blog where he documented this whole journey of becoming financially
independent and retiring early with both him and his wife. So I'm going to link up his blog down in the description below
as well as a couple of other stories about
people who have followed this exact strategy and
retired at 30 or less. So that's going to wrap
up this video guys, thanks so much for watching. If you're new to this channel, make sure you subscribe and
hit that bell for notifications so you don't miss future videos, and I hope to see you in the next one..

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401K to Gold IRA Rollover

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Gold IRA rollover – Satori Traders

a gold ira rollover can protect your retirement savings from today's rising inflation americans are being assured that inflation is transitory but prices keep going up from 1963 to 1980 silver prices increased by 2700 percent and the price of gold increased by 1600 percent savvy individuals are recognizing that today's inflation could significantly reduce the value of their retirement savings they are concerned that inflation will make their desired retirement unaffordable so what's the solution how can americans protect and secure their retirement savings from the ravages of inflation the taxpayer relief act of 1997 provides one answer to that question this law allows investors to hold physical precious metals inside their ira accounts money in existing retirement savings accounts can be moved into physical precious metals using a gold ira rollover in fact all of these account types are eligible for a rollover or transfer keep these important ira facts in mind investors may have more than one ira open opening a gold ira does not affect existing retirement accounts investors are allowed to move funds from one tax advantaged account to another without penalty and only one rollover or transfer per year is permitted when funds are transferred from an existing ira to a precious metals ira the transaction must be completed within 60 days to avoid tax consequences there's a simple four-step process for opening a precious metals ira one open a self-directed ira account with an irs approved trustee two fund the account three choose a custodian to hold the physical precious metals and four pick which medals to hold in the account the account can be funded with either a rollover or a transfer there are two options for funding a new account in a rollover funds are wired from the current account trustee to the trustee for the new account in a transfer funds are first distributed to the investor and the investor then deposits all or some of the distribution into the gold ira account these tax rules apply to precious metals iras only irs approved metals can be held that means silver gold platinum and palladium distributions can be taken in cash or physical metal distributions are treated as ordinary income at the investor's tax rate and precious metals held inside an ira are not subject to the 28 tax rate for collectibles to protect and preserve your retirement savings with a gold ira rollover click the link below

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What is a precious metals IRA

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

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

Especially one surgeon he is a extremely gifted surgeon who can fix any damaged valve. He is single, he has no other commitments every other day he talks about going to Banaras or somewhere and retire and I keep telling him that God didn’t create him to retire and meditate. He has to be fixing all these problems So he gives me extension every six months Guruji. So at the end of six months the usual rigmarole starts, he talks about retirement and everybody is depressed in the hospital. So how do you deal with this kind of people? Sadhguru: You must you must give him a one year sabbatical with me Yes, because the need or the idea of retirement enters anybody’s mind because of the monotony of what they’re doing, whatever it may be.

Somebody else may think it's a great thing but in your experience somewhere it's becoming monotonous or stagnant. Stagnation is one thing that human intelligence and human system cannot take. And most of the ailments are because of stagnation stagnation of life. They may be… they may be getting their you know once in three years promotion. They may be making little more money. All these things may be happening but somewhere experientially there’s a stagnation, which could be a major cause for many of the complex ailments that people manufacture within their systems.

The more complex they get you try to create more talented surgeons. I am saying we are manufacturing the problems, we are trying to manufacture a solution. I think as we offer solutions people who have adl… already gotten into problems, they need solutions. But it's very important that we teach people how not to create these problems, so that instead of fifty, you have to produce five thousand expert surgeons to attend to all these people who are on self-help to illness. So I would say a surgeon who is who has a certain competence and who has worked through his life, if he wants to explore something of his own nature, that will be the greatest thing to do because he is not a man without commitment nor competence.

When competence and commitment is there, you should not run him through the rig ram role (rigmarole?) and destroy that possibility. It’s important that he explores something of his own nature, which will make him We don't know what he’ll come up with. You cannot even estimate what he may come up with. I think a sabbatical is good. He may come up with something that you have not thought possible. Devi Shetty: I will… I will convey your message Sadhguru. I am sure he is watching this program.

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Retirement Planning Home

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Retirement Financial Advice: Money Lessons You Need to Know in Retirement

once your earning years are over and you've built Your Nest Egg for retirement you need to be smart about so many decisions now we're not financial planners and we make that very clear with everyone but we are retired and we do spend time making sure we're doing the right thing financially with our own money because oh bad financial habits and lack of knowledge can actually ruin your we have we have a couple they're good friends and he felt like he knew what to do with the marketplace with his Investments and he clearly didn't because he had his money in stocks when it when they went down and he pulled it out and put it into cash when it went up so for eight years he was on the wrong side of every single one of the stock market moves and because of that he lost a significant amount of his retirement assets and that's really difficult and today we find that they're struggling many of their dreams have vanished and they both actually had to go back to work now there's nothing wrong with work but it's just not what they had planned so we can't emphasize enough right out of the shoot having a financial planner is so important because it gives you a plan it gives you a vision it gives you an idea but it also does this which I think is most important it takes the emotion out of the marketplace which can get the best of you think you know what's going to happen at a new presidential election and frankly you don't that's right so let the experts help you with that because we don't want to have what happened to them happen to you today we want to share some practical ideas that may maintain or even improve your financial situation and again the number one lesson today is don't manage your money without a financial planner and we don't mean a stock broker what we mean is someone who has a fiduciary responsibility to make recommendations that are are really good for you not good for them and they talk to you about the strategies and you might say well sure they do but they also talk to you about withdrawal strategies right how much should you be withdrawing each year in order to preserve your nest day how much do you need each month and then they pull it from the smartest place it needs to come from using tools like tax loss harvesting you can't just take money out of a stock because you want to because you're going to have capital gains right right and you know we're not a big fan of multiple planners but we'll leave that part up to you so the first one is make sure you get a financial planner somebody you're comfortable with the second is keep your emergency fund intact kind of no matter what you need to have emergency savings that doesn't disappear when you retire it's more important than ever to have accessible cash set aside for any type of emergency so two three four months of expenses in a cash account that way your financial planner can invest the rest of your money and always always be thinking about you're going to need more money in 60 days so what can they put you into short term so you want to have this cash account so you can cover any kind of emergency expenses or just if you want to leave stuff in the market a little bit longer you've got some cash or even if you have any big purchases that are coming down the pipe that's true making sure your financial planner knows that you're ready for that so the second thing is the emergency fund now here's another um here's another way that you can get into trouble or you're also a way to dig yourself out of trouble you want to take a look at all your luxuries and make sure that they haven't become a burden because frankly that happened to us we both had jobs we were both working gosh 15 years ago we bought our first boat and we bought four boats over the next 15 years but we could afford it because we both were working we both had money and it was our floating vacation home so to speak I I call the last one that we had a lifestyle about because we went away on that one a lot it was a little bit larger but once we were tired all of a sudden it was like well we don't really want to go out on it the weather isn't good you know we'd rather stay home we'd rather be with for the price of diesel or the price of gas you know the price of storage the price of hauling the price you know all of those things have to be factored in when you have a fixed income yeah and we didn't have the same earning capacity to kind of keep up with the luxury so we stopped using it and then it became a burden like why aren't we using it and it was a year ago now that we decided to sell it and it's sold within a month because we kept really good care of it but the thing is if you have luxuries it's really important to take a look at them and say that's something we're really getting a lot of satisfaction of because it's going to cost you money well there are also luxuries that you have and then there's luxuries you provide for others right so we have six children and we were providing cell phones homeowners insurance auto insurance airline tickets for them and their significant others are partners and you know that was all fine when we were dual income but as they aged and as we aged and as we came into a fixed income place we needed to start peeling some away and giving those responsibilities back to them and they can afford it they all have great jobs and if they're ever stopped but it was a luxury it was to be able to do that for him but but frankly it also gave us a lot of satisfaction a lot of fulfillment to be able to help them right so it was hard for us to Pivot to in our mind take these things away from the kids but they you know at some point they've got to be to stand on their own two feet so and we needed to reduce the support so we sold the boat we paid off two car loans we came to an agreement with the kids and slowly weaning them off of some of these things we've always paid for you know because they they can't afford it and you know they they they're fine with it right they even they say it's kind of silly that you're paying my cell phone bills so it's it's another cord to cut that um you know it's hard to do but we want to encourage you to do it yeah so that was the third one the fourth one is you know really trying to figure out how to live a little below your means you know and that's new for us for our entire career as our income went up our living style and our cost of living and everything we did went up with it you know hard work learning and growing you know we were climbing the corporate ladder Mark was building his business you know it was easy to have your lifestyle kind of follow you yeah and you know we both come from humble beginnings and we improved our lifestyle as we went up but then then it's sort of when when you retire you have to think okay well my income's not going to keep going up as a matter of fact it's going to go down so how do we want to live what are some things we can do to live within our means and even underneath our means so and there were a couple things we had to agree to right so you know I call it shopping for sport right so there's there's no more you're better at that than pickleball kind of just opening up and saying oh you know look what just came into my feed I'll take a look at those earrings or that bracelet or those dresses or those sunglasses I think about it I kind of have a little bit of a sunglass addiction so so you know there was you know we agreed that we would do no more shopping for sport yeah it was one of Instagram Amazon it's so easy to spend money today and you get hooked on this new game you don't even leave your house you don't even leave your house you know keeping up with the Joneses that's not necessary anymore right you know who are the Joneses anyway today it's other retirees we're not taking on any more debt we've paid down most of our debt you know again we have a financial planner and you know we have a more modest wardrobe I mean our fancy or fanciest clothes are for our YouTube channel right and we're eating out less we made the agreement that for health and economic reasons we would eat out less so leave living below your means is something you can control and it's something that you can put some time and intention into so another really important thing to get to know is everything about social security and we we don't know that much about it so our financial planner and our accountant has said you don't need to take it yet and that's kind of all we're thinking about at this point they'll let us know when it makes sense and when it makes sense it'll make sense but you have to really understand or have someone coaching you on what's important because everyone's financial situation is different yeah and I really believe the more you know about it the better off you'll be even if you do your own investigation you know Social Security was not meant to be your primary source of income as you age in America it was meant to be a supplemental income so you have to understand the amounts you can get at what future ages and can you still work and does your state tax it or not you know there's a lot of rules around Social Security and my recommendation would be just get to know your rules in your state around your age just for the knowledge I don't know but I think there's a certain amount of uh you can't earn a certain amount of money and still get Social Security I don't really know but you have to know that's I guess that's the point you really need to know everything about social security check with your account and your financial plan right here's a big one for us and it should be for you too I think you know money will never buy you happiness and we've heard that like our whole lives and so we actually did a little bit of research and you know what really defines happiness for us and we came across this quote and part of it is from Warren Buffett but it says you know we want to do what we want when we want with whom we want for as long as we want and that to us will Define our happiness you know now some of what you do will require money but it's not all about buying stuff and things you know most of what we do for happiness now is experiences I I would think that for us and tell me if you agree but the something we just spent money on is giving us more happiness now for a very low value than anything else I remember paying forever you know what it is your pickleball racket pickleball so we joined the YMCA uh for like eighty dollars a month for the family we bought a pickleball racket for 100 bucks and six balls for eighteen dollars and we're getting like five or six hours of use out of that each week yeah that's happiness that really is making us happy it's not a new car it's not a new set of golf clubs right it's not what we're used to thinking that was um would create happiness and we're also looking at vacations differently right now that we have the full seven days to ourselves many vacations to visit friends or family you know they become Tuesday Wednesday Thursday versus the high traffic weekend Friday Saturday Sunday so many vacations Beach days lunch dates you know we just renting a boat for a day we're doing that with company comes we're renting pontoon boats now for the day to take companies out it's three hundred dollars for a day which in one respect sounds like a lot but it's a lot cheaper than owning a boat right that's true so we still get out on the water now look you clearly need money in retirement we all can agree on that but how much do you need and how much is enough you've got to figure out how much you have how much you can pull out each month and how long it's going to last those are key questions you need to work through with your planner and your account yep and paying attention to some of these things that we just shared will help guide you and keep you out of trouble now we hope you enjoyed this video and if you did you're going to like this next one called the truth about early retirement what they don't tell you it's one of our most popular videos and you know we're not getting any younger so why steal these fabulous years from ourselves our family and our friends watch this one next

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Retirement Planning Home

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Wealth Transfer Prophecy Part 2. (The Wealth of the Wicked will be Given to the Righteous)

The Wealth of the Wicked will 
be Given to the Righteous  Wealth Transfer Prophecy, Part 2. This is the second part of the wealth transfer 
prophecy, as we mentioned in the first video,   God will use certain cryptocurrencies as 
instruments to transfer wealth to his people. The   first currencies that will be used in this phase 
are Luna Classic, Shiba Inu, and Bitcoin. LUNC   will rise first, and then SHIB, during the process 
BTC will fall and rise a couple of times as well. This will allow God's people to place limit 
orders, to buy BTC when the price falls to   almost $1 per Bitcoin. LUNC, SHIB, and BTC will 
be the first ones to provide opportunities,   due to the rises and falls these coins 
will have. The prices to sell the coins   in the sell limit orders, are the prophetic 
prices made known by God through His prophets,   as well as by His people who received visions 
and dreams, granted by the outpouring of His   Holy Spirit.

Once the first phase is 
finished, and after receiving profits, the prophecies point to buy the XRP and XLM 
coins, which will definitely be one of the   best investments to make, this is because 
in the future XRP will be backed by gold,   and XLM by silver. We should also point out, that 
the prophetic word emphasizes the need to invest   in real estate, agricultural land, goods, 
properties, houses, buildings, facilities,   etc, because in the future there will come 
a time known as crypto winter, a period in   which the entire global financial system, 
including cryptocurrencies, will be down. In other words, prices will fall to the 
ground, whose values will be too low,   to be able to buy the necessary food, 
which will be extremely expensive.  Once the crypto winter time is over, God will 
cause a large group of cryptocurrencies to rise   in price greatly, and they will reach a very high 
value in the future. This is why God reveals to   his children that when the cryptocurrencies 
fall in value, whose prices will be very low   during the crypto winter time, then, it will be 
the right time to buy certain cryptocurrencies, whose values will be multiplied greatly in 
the future.

At the moment, we do not know yet,   how many weeks, or months the coming future crypto 
winter period will last. For this reason, it is   essential to acquire agricultural fields and real 
estate, one to produce food, and the other as a   means to preserve profits. We remind you that all 
the links you will need to learn, key information,   prophetic prices, details, etc, will be in 
the description of the video. God bless you..

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Retire Wealthy Home

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Your Tell-All Guide to Saving for Retirement

I'm Britt, the co-founder of Dow Janes, and 
every single week I have someone asked me   how they can start saving for retirement 
or how much they need or if it's too late   to start saving. Today, I'm going to share my 
top tips for starting to save for retirement.   And don't worry; it's easier than you think.
If you want more ideas for saving, investing,   and making the most of your money, 
don't forget to hit the subscribe button   and the bell so you don't miss any new 
videos. And if you liked this video,   definitely give it a thumbs up.
All right. So, there are some misconceptions   about retirement saving that I want to address. 
First, one thing people often ask us is how much   do I need for retirement? What's the magic number? 
And the truth is it varies widely.

It depends on   where you want to live or what lifestyle you 
want to have or when you want to retire. Are   you trying to retire at 40 or at 70?0.
If you take anything away from today, I want   you to just start saving 20% of your pre-tax 
income for your retirement, and you'll be fine.   To learn more though, keep listening.
Okay. So how do you start saving for   retirement? What you do is you follow the roadmap 
steps. You make sure you're doing things in the   right order. So we have a whole nother video 
on the roadmap steps, but just to recap,   the first thing you want to do is make sure 
you're spending less than you make each month.
  The second thing is to pay off any 
high-interest rate debt you have, which is   anything with an interest rate over 7%, then 
you want to build up an emergency fund.

And   then once you have those three things in place, 
you're ready to start saving for retirement.   So, to do that, you're going to find your monthly 
savings number. You can use a simple retirement   calculator to figure out how much you want to have 
in retirement. I'll link to one in the description   below. What you'll do is you'll add in your 
current savings, anything you've already saved   for retirement already, anything you expect to get 
from social security, and then you'll adjust the   savings amount to see exactly how much you need 
to save each month to be on track, to meet your   retirement goals. It's a super easy calculator, 
you just enter the numbers. It'll spit out exactly   what you need to do, and that number, that savings 
amount, that's going to be your monthly goal.
  So, if you don't already have an account, 
you'll open up a retirement account,   and that's where you'll begin to transfer that 
savings amount to that account each month.
  Where should you save your money? There are 
different types of retirement accounts.

So,   if your employer offers matching, then you'll 
want to open a 401(k) or 403(b). In addition,   you can open a Roth IRA or a traditional IRA. 
IRA stands for Individual Retirement Account.   If you're self-employed, you can also open a SEP 
IRA. So for the Roth traditional or SEP IRAs,   you can open those at any brokerage places 
like Vanguard, Charles Schwab, Fidelity,   or with a robo-advisor like Wealthfront or 
Betterment. Any of those places offer retirement   accounts. So, it's super easy to get started. 
Then if your employer offers 401(k) matching,   you definitely want to advantage of that.
So, what is 401(k) matching? It's when you   save money for your retirement and your company 
contributes the same amount that you save.   They'll often match up to a certain amount 
or a certain percentage of your salary.
  So, if your company matches 4% of your 
salary and you make $5,000 per month,   you could contribute $200 per month towards your 
retirement, and your company would contribute an   additional $200 per month.

So you basically get 
$200 in retirement money for free each month.
  It's a way for companies to incentivize 
their employees to save for retirement.   So, if your employer offers this, definitely take 
advantage of it. It's the easiest free money out   there. And make sure you're contributing the 
maximum amount that they're willing to match.
  Okay. The next thing you'll do, if your employer 
doesn't offer matching, or if you're, um, if   you've already maxed that out, the next thing 
you want to do is max out your contribution to   your Roth or your traditional IRA. So, each year, 
the IRS limits the amount that you're allowed to   contribute. In 2021, the amount is $6,000.
If you're over 50, you have an extra bonus. You   can contribute $7,000. So, try to contribute the 
maximum amount to those accounts each year. So,   max out your 401(k) to where your company matches 
max out your Roth or your traditional IRA. If   you're self-employed, you could also contribute to 
your SEP IRA. If you're a great saver and you're   saving more than those amounts, you can open 
your own brokerage account.

So, a non-retirement   account, and save the money there. You can use 
that money for whatever you want, but you can   know that you're saving that for retirement.
Once you've saved the money in those accounts,   what you're going to do is invest that savings. So 
for the easiest and simplest way to get invested,   you'll invest in target date funds. These 
are pre-made portfolios that allocate your   money to a mix of stocks and bonds that 
are appropriate based on your age.
  If you want to invest in index funds yourself, 
or if you're picking a fund that your employer   offers, then you can use these rules of thumb. 
Generally, you want your portfolio to be invested   in the percentage of stocks that is equal to 
120 minus your age.

So if you're 20 or younger,   you want to have 100% of your portfolio 
in stocks. If you're 30, you want 90%   in stocks, for example. And just a quick 
note that if you invest in target date funds,   that will do that for you. The allocation 
changes the allocation of stocks and bonds   changes over time as you get older.
One quick thing to know is that you   actually don't need to take your money, your 
retirement money, out the year that you retire.   You can leave it invested while you're in 
retirement and just take out what you need,   which means you actually have more time 
than you think for your money to grow.
  So, hopefully that gives you some peace of mind. 
If you're getting started later in the game,   if you're wondering how much you should be 
saving in retirement savings each month,   we have a couple of rules of thumb for you.

And 
the bottom line is the sooner you start saving for   retirement, the less you actually have to save, 
because if you start sooner and you invest that   money, it will grow and it will grow over a longer 
period of time. If you're starting later in life,   you have to save more because it has less 
time to grow. So, if you're in your twenties,   you can save 15% of your pre-tax income each 
month and you'll be set. If you're starting   in your thirties, you want to save 20% of your 
pre-tax income. If you don't have anything saved   and you're just starting to save for retirement in 
your forties or your fifties, you'll need to save   even more since you're starting later and your 
money has less time to grow. If this is you, watch   out for our next video on how to start saving 
for retirement if you're in your fifties.
  All right, the sooner you start saving for 
retirement, the easier it is.

So, here's a recap   of the steps: One, follow our wealth building 
roadmap, so you know what to do in what order.   Two, find your monthly savings. Number three, open 
a retirement account. Four, take advantage of free   money. Five, max out your contributions. Six, 
invest your retirement savings, and seven,   contribute to your retirement savings each 
month. If you want to learn more about how   to build your wealth and invest your retirement 
savings, then definitely check out our webinar,   Think Like an Investor. The link's in the comment 
below.

All right. Thanks for watching..

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