Tag: FinancialFreedom
Retirement Tips | IRA Rich and Cash Poor? Not Good in Retirement!
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
[Music] another no-brainer for those looking
to have a successful retirement now last week I gave you some insight on taking a simple
approach to investing using a 730 year old philosophical approach to keeping things simple
and not complicating Basics you should be doing leading up to or in retirement now you can visit
our website to look at that and a host of other great videos better yet you can subscribe below
and become the smartest person in the room when it comes to finances leading up to again or in
retirement now Ira rich and Cash 4 seems to be the starting point for most pre-retirees this
is what we see on a regular basis in our offices weekly now I know most of you watching will agree
with me on this fact and most likely you're in the same position I'll continue to hammer home these
two major points in this area one is for you to not put a dollar more into your company's 401K
then the company will match your mindset is I want to shock away as much as I can and I agree with
that however you're not thinking about as we say the road ahead it's taxes dummy ask yourself this
simple questions will taxes go up or down in the future let me help you up meaning in retirement
almost 40 percent of your 401k will be going to Uncle Sam in a lot of cases I want to see more
cash in your savings that has already been taxed I have countless families come in with a million
dollars in their Ira or tax deferred accounts and less than 50 000 in cash that's not good think
distribution instead of accumulation many will say this but Dave this forces me to save money because
I don't see it in my paycheck really how old are you after you cash that paycheck with those after
tax dollars have your advisors sweep those dollars to your investment account so you won't be tempted
believe me you will thank me later secondly once you have reached 59 and a half move that 401k as
soon as possible to your own IRA account now why because you can now have choices of Investments
that are unlimited where's your current 401K has a few and usually lousy choices but the most
important part of that is now you can protect that part of your nest egg from Major Market swings
leading up to retirement now for those of you who have left previous companies do not roll your old
401K into your new company's 401K no no no again you're shooting yourself in the foot no protection
and no choices you want to control your own destiny and not have some huge fund company making
decisions on your behalf who have no idea who you are and could care less what your future goals
are in our field of wealth and income management the investing side is the easy part dealing
with individuals that have preconceived ideas and biases towards less than Optimal Solutions is
usually where we have difficulty twisting arms for the do-it-yourselfers make these moves as soon as
possible and you'll be in a much better position to succeed when it comes to retirement cash is
King remember an after-tax dollars or tax free dollars are the best protecting those dollars
in fast-moving markets is just playing smart understanding the Simplicity of using options is
to do this is beneficial just plain responsible I always hear from the man how their major concern
is making sure the wife is set up if anything happens to them and it is the fact that the wives
outlive the husbands by an average of 12 to 15 years well if that's the case then protecting
these assets well into the future is just approved move creating income you cannot outlive is also a
no-brainer today there are great opportunities to continue to capture growth with protection and
create income for life now listen don't forget to subscribe below and visit our website let us
help you plan for the road ahead until next time
Mastering Retirement: Crunching Numbers on a $1,000,000 Nest Egg
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
is a million dollars enough to retire on I'm Clark adbury I'm a financial adviser for the last 30 years I've been helping individuals and families manage their Investments and plan for their retirement if you've accumulated a million dollars in retirement savings congratulations well done you've done some serious retirement planning in this video I'm going to answer the question is a million dollar enough to retire on let's talk about it in order to answer this question we have to address a few variables what's your cost of living going to be in retirement have you got a retirement budget have you factored into your retirement budget potential future expenses like medical expenses not covered by Medicare or long-term care expenses also depending on your investment strategy for retirement your Investments may have different rates of return don't forget to factor in taxes to the equation for example if you were to say to me Clark I want to take out $5,000 a month from my retirement accounts is that 5,000 before taxes or 5,000 after taxes let's take a look at a few different scenarios to tile this together to help you understand what's a safe withdrawal rate how much can you take from your retirement savings and not run out of money during your lifetime in all these scenarios and illustrations we're assuming a retirement age of 65 but if you can retire sooner all the better if you were to say to me Clark our retirement budget is $7,000 per month next thing we want to look at is your other sources of income let's assume you have social security of $2,000 per month if you subtract the $2,000 a month from your $7,000 per month retirement budget that leaves you with $5,000 per month you need to be able to take from your retirement Savings in this illustration we're taking up $5,000 per month from your retirement savings we not giving you a cost of living adjustment in this scenario that means $5,000 a month at 65 and $5,000 a month at 85 we're assuming a 3% rate of return and under these circumstances the money erodes over time and last till about age 88 one big problem with this first scenario is that it does not give you a cost of living adjustment if you're really taking the same monthly income at 85 that you were taking at 65 you're going to have a tremendous drop in your standard of living your purchasing power will have eroded due to inflation so let's run another scenario in which you do give yourself a a 3% per year cost of living adjustment that's to keep up with the long-term average rate about 3% per year for inflation let's see what happens then in this scenario we're taking out $5,000 per month initially we are giving you a 3% perear cost living adjustment each year this still assumes just a 3% per year rate of return because of that cost living adjustment the fact that we're taking out more each year for your retirement savings we see that the money erods more quickly and this case runs out at age 82 but again that's with only a 3% rate of return let's look at another scenario where we have a higher rate of return and also have that cost of living adjustment in this scenario we're taking up $5,000 per month initially giving you a 3% per your cost of living adjustment the difference in this one is we're earning 6% as opposed to 3% that you're earning in the last scenario and this time instead of the money lasting at only 82 because we're earning 6% the money lasts until age 88 that was at a 6% rate of return on your retirement savings let's run it again this time using an 8% rate of return in this scenario we're starting out with 5 ,000 per month we're giving you a 3% Pere cost of living adjustment but this time instead of 6% we're earning 8% as you can see now the money lasts all the way until age 97 let's look at one more scenario in this one I work backward to see how much we can take out safely from your retirement savings and not run out of money before you're 100 years old in this scenario we've gotone back to a 6% per year rate of return and your retirement savings we're still giving you 3% per year cost of living adjustment we want the money to last to to 100 we find that you can take out $5,300 per month and give yourself 3% per year raise every year and have the money last all the way until you're 100 if you're do it yourself I hope this has been helpful to you if you're the kind of person likes help with your investment management and retirement planning well that's what we do for our clients reach out to us if we can help for nine great reasons to retire early and one to maybe not watch this video next
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