Tag: planning for retirement
Retirement Planning in Your 50s and Beyond
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Your 50s are an excellent time to get serious
about retirement planning, and that's because at this point in your life, you may have figured
a couple of things out. You might have a decent idea of where you
spend money, what your preferences are, the things you don't care for so much, and you
might also have some financial advantages at this point in life. Perhaps you've paid off a lot of debt maybe. If you had kids, they're out of the house
or almost independent. And you might be in your peak earnings years
because you have gained some expertise and some knowledge in whatever it is you do for
a living, and one big reason to get serious is you might have more money than you've ever
had before saved up so now it really counts. A 10 % loss in the markets, for example, hurts
a lot more than it did when you were 22 years old.
But whether you're just getting started saving
for retirement or you've been doing it for decades there are some important things that
come up in your 50s that can help you pave the way to a smoother retirement down the
road. The first thing to watch for is catch-up contributions,
and this is not the condiment, this is a catch-up contribution that allows you to put extra
into your retirement accounts each year once you reach age 50. The IRS sets maximum limits on how much you
can contribute to those accounts, but at 50, you can do a little bit extra and that helps
to boost what goes into those accounts each year for example in your 401k or 403 b or
governmental 457 you can put in an extra six thousand six hundred dollars per year as a
catch-up contribution on top of the max that you had back when you were 49 years old and
your knees didn't hurt as much.
For traditional and Roth IRAs, for 2022 that
number is a thousand dollars of extra catch-up contributions. Of course, this is assuming that you have
the cash flow to make the maximum contribution and put the catch-up contribution on top of
that, and if you don't, that's okay, it's not feasible for everybody, just do what you
can. But if you are really trying to maximize your
account balances at retirement, those catch ups are a powerful tool. The next thing to do is to look at your Social
Security and pension benefits. It's a good time to start getting a realistic
expectation of what you might get, and that's because you might assume that you're going
to get a lot more or a lot less, but it's really helpful to start figuring out how those
systems work and how much you can expect each month. If you're eligible for Social Security, you'll
want to go through your earnings history and make sure that that is accurate because if
any years are missing you may end up with a smaller monthly retirement benefit.
Your benefit is based on your 35 highest earnings
years, so you want to make sure that those good earning years are in there and that you
don't have any unnecessary zeros in your history. Keep in mind that you may be able to get some
retirement benefits from a former spouse or your current spouse, so if you're widowed
or divorced, for example, you want to research those potential benefits and you might also
be able to get income on your spouse's earnings record if you are still married and there,
are some strategies you'll want to look at as you go through that process. By the way, I'm Justin Pritchard, and i help
people plan for retirement and invest for the future. So, there will be some resources down in the
description below that cover this in more detail and give you some other pointers.
Another smart move is to manage your debts
or make a strategy for them. So, if you have consumer debts like credit
cards for example, you definitely want to plan to eliminate those debts and make sure
that your spending stays within your income limits so that you're not digging yourself
a hole during retirement or as you head towards retirement. But what about so-called "good debts" in retirement? For example, a mortgage. There's a lot of benefit to being debt-free
and not having a mortgage payment when you're in retirement a lot of people really focus
on getting rid of that loan before their retirement date but it's not necessarily the end of the
world to have a mortgage in retirement, and paying it off quickly out of your retirement
funds can cause some problems. As long as you can fit that monthly payment
into your income maybe that's your Social Security, pensions, and some withdrawals from
savings accounts, and you can manage that debt comfortably, then again, it's not the
end of the world, and remember that that loan payment will eventually go away someday which
frees up cash flow for other expenses maybe health care expenses later in life.
Speaking of expenses, how much are you going
to need to spend? Well, that's something to start figuring out
and there are a couple of different ways to do that this video that's going to pop up
above will give you some pointers on that but basically you can look at your spending
today and maybe adjust that for inflation or you might look at an income replacement
ratio and say maybe I just need 80 percent of what I'm earning now that might or might
not be right for you or you can target a certain level of spending such as $50 or $100,000
whatever the case may be, and with those numbers you can set a goal to start heading for once
you have an idea of your spending and your retirement income sources and your assets
then you can run some calculations and again we're setting your expectations so that you
know if you're on track or not and this can alert you to some potential shortfalls or
maybe let you know if you could retire earlier than maybe you expected there are a lot of
helpful online calculators out there they can do a decent job of getting you in the
ballpark but make sure you understand what their limitations might be so they don't necessarily
get super detailed and you might not be able to adjust all of the assumptions but again
you can get some basic ideas of if you're sort of close or if you're way off on what
you expected another good move in your 50s is to refine your investment strategy so up
to this point you may have been doing some great things to get you to the point where
you are you've built up some nice assets but if you've been using high risk strategies
maybe speculating maybe day trading that sort of thing it's time to ask yourself if that's
something that you want to continue doing at this stage in life it is difficult to consistently
get good results with those high risk approaches and you might have more to lose now than you
did previously.
I'm not saying you can't do it or definitely
don't do it but I would say proceed with extreme caution and maybe just say hey I've done a
good job up to this point maybe I'll reevaluate what I'm going to do going forward. At 50 it's time to start thinking about long-term
care if you haven't already been thinking about it there's a 70 percent chance that
you might need some type of long-term care and that might include everything from somebody
helping you out at home maybe this is a loved one assuming you have somebody at home who
is willing and able and remember it could be physically and emotionally difficult and
it might require expertise but it could include somebody helping you out at home who you know
or you going into a skilled nursing facility and paying those higher costs that are associated
with that higher level of care there are several ways to deal with the costs and that might
include a long-term care insurance policy but those are kind of problematic so definitely
look into them but consider some other alternatives as well maybe instead of maybe to supplement
or maybe you just go with insurance but some other options include saving up assets and
earmarking those for a long-term care event or maybe looking at your home equity as a
safety net to cover some of those big expenses that's not necessarily a fun way to spend
your time so one of the other things you can do is envision how you want your retirement
to unfold and this is a really important step that a lot of people skip it's important to
have something to do with yourself once you stop working you might have gotten a lot of
your social engagement a lot of your meaning and some of your identity out of your work
and you might want to not necessarily admit that but for a lot of people that's the case
it's easy to say that the main thing you're looking forward to in retirement is not going
to work but you probably want to have some ideas on how you're going to fill your time
and that way you're going to number one enjoy it more and number two there might be some
real benefits in terms of your mental and physical health if you are retiring to something
as opposed to just retiring from work, so ask yourself how will you fill your days? What are you most excited about and interested
in? What can you do to find some meaning and some
purpose during that time? And who might you spend time with, and what
are your plans for keeping your physical health as good as you can possibly keep it? So, I hope you found that helpful.
If you did, please leave a quick thumbs up,
thank you, and take care..
Retirement Planning in Your 50s and Beyond
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Your 50s are an excellent time to get serious
about retirement planning, and that's because at this point in your life, you may have figured
a couple of things out. You might have a decent idea of where you
spend money, what your preferences are, the things you don't care for so much, and you
might also have some financial advantages at this point in life. Perhaps you've paid off a lot of debt maybe. If you had kids, they're out of the house
or almost independent. And you might be in your peak earnings years
because you have gained some expertise and some knowledge in whatever it is you do for
a living, and one big reason to get serious is you might have more money than you've ever
had before saved up so now it really counts.
A 10 % loss in the markets, for example, hurts
a lot more than it did when you were 22 years old. But whether you're just getting started saving
for retirement or you've been doing it for decades there are some important things that
come up in your 50s that can help you pave the way to a smoother retirement down the
road. The first thing to watch for is catch-up contributions,
and this is not the condiment, this is a catch-up contribution that allows you to put extra
into your retirement accounts each year once you reach age 50. The IRS sets maximum limits on how much you
can contribute to those accounts, but at 50, you can do a little bit extra and that helps
to boost what goes into those accounts each year for example in your 401k or 403 b or
governmental 457 you can put in an extra six thousand six hundred dollars per year as a
catch-up contribution on top of the max that you had back when you were 49 years old and
your knees didn't hurt as much. For traditional and Roth IRAs, for 2022 that
number is a thousand dollars of extra catch-up contributions.
Of course, this is assuming that you have
the cash flow to make the maximum contribution and put the catch-up contribution on top of
that, and if you don't, that's okay, it's not feasible for everybody, just do what you
can. But if you are really trying to maximize your
account balances at retirement, those catch ups are a powerful tool. The next thing to do is to look at your Social
Security and pension benefits. It's a good time to start getting a realistic
expectation of what you might get, and that's because you might assume that you're going
to get a lot more or a lot less, but it's really helpful to start figuring out how those
systems work and how much you can expect each month.
If you're eligible for Social Security, you'll
want to go through your earnings history and make sure that that is accurate because if
any years are missing you may end up with a smaller monthly retirement benefit. Your benefit is based on your 35 highest earnings
years, so you want to make sure that those good earning years are in there and that you
don't have any unnecessary zeros in your history. Keep in mind that you may be able to get some
retirement benefits from a former spouse or your current spouse, so if you're widowed
or divorced, for example, you want to research those potential benefits and you might also
be able to get income on your spouse's earnings record if you are still married and there,
are some strategies you'll want to look at as you go through that process. By the way, I'm Justin Pritchard, and i help
people plan for retirement and invest for the future. So, there will be some resources down in the
description below that cover this in more detail and give you some other pointers.
Another smart move is to manage your debts
or make a strategy for them. So, if you have consumer debts like credit
cards for example, you definitely want to plan to eliminate those debts and make sure
that your spending stays within your income limits so that you're not digging yourself
a hole during retirement or as you head towards retirement. But what about so-called "good debts" in retirement? For example, a mortgage. There's a lot of benefit to being debt-free
and not having a mortgage payment when you're in retirement a lot of people really focus
on getting rid of that loan before their retirement date but it's not necessarily the end of the
world to have a mortgage in retirement, and paying it off quickly out of your retirement
funds can cause some problems.
As long as you can fit that monthly payment
into your income maybe that's your Social Security, pensions, and some withdrawals from
savings accounts, and you can manage that debt comfortably, then again, it's not the
end of the world, and remember that that loan payment will eventually go away someday which
frees up cash flow for other expenses maybe health care expenses later in life. Speaking of expenses, how much are you going
to need to spend? Well, that's something to start figuring out
and there are a couple of different ways to do that this video that's going to pop up
above will give you some pointers on that but basically you can look at your spending
today and maybe adjust that for inflation or you might look at an income replacement
ratio and say maybe I just need 80 percent of what I'm earning now that might or might
not be right for you or you can target a certain level of spending such as $50 or $100,000
whatever the case may be, and with those numbers you can set a goal to start heading for once
you have an idea of your spending and your retirement income sources and your assets
then you can run some calculations and again we're setting your expectations so that you
know if you're on track or not and this can alert you to some potential shortfalls or
maybe let you know if you could retire earlier than maybe you expected there are a lot of
helpful online calculators out there they can do a decent job of getting you in the
ballpark but make sure you understand what their limitations might be so they don't necessarily
get super detailed and you might not be able to adjust all of the assumptions but again
you can get some basic ideas of if you're sort of close or if you're way off on what
you expected another good move in your 50s is to refine your investment strategy so up
to this point you may have been doing some great things to get you to the point where
you are you've built up some nice assets but if you've been using high risk strategies
maybe speculating maybe day trading that sort of thing it's time to ask yourself if that's
something that you want to continue doing at this stage in life it is difficult to consistently
get good results with those high risk approaches and you might have more to lose now than you
did previously.
I'm not saying you can't do it or definitely
don't do it but I would say proceed with extreme caution and maybe just say hey I've done a
good job up to this point maybe I'll reevaluate what I'm going to do going forward. At 50 it's time to start thinking about long-term
care if you haven't already been thinking about it there's a 70 percent chance that
you might need some type of long-term care and that might include everything from somebody
helping you out at home maybe this is a loved one assuming you have somebody at home who
is willing and able and remember it could be physically and emotionally difficult and
it might require expertise but it could include somebody helping you out at home who you know
or you going into a skilled nursing facility and paying those higher costs that are associated
with that higher level of care there are several ways to deal with the costs and that might
include a long-term care insurance policy but those are kind of problematic so definitely
look into them but consider some other alternatives as well maybe instead of maybe to supplement
or maybe you just go with insurance but some other options include saving up assets and
earmarking those for a long-term care event or maybe looking at your home equity as a
safety net to cover some of those big expenses that's not necessarily a fun way to spend
your time so one of the other things you can do is envision how you want your retirement
to unfold and this is a really important step that a lot of people skip it's important to
have something to do with yourself once you stop working you might have gotten a lot of
your social engagement a lot of your meaning and some of your identity out of your work
and you might want to not necessarily admit that but for a lot of people that's the case
it's easy to say that the main thing you're looking forward to in retirement is not going
to work but you probably want to have some ideas on how you're going to fill your time
and that way you're going to number one enjoy it more and number two there might be some
real benefits in terms of your mental and physical health if you are retiring to something
as opposed to just retiring from work, so ask yourself how will you fill your days? What are you most excited about and interested
in? What can you do to find some meaning and some
purpose during that time? And who might you spend time with, and what
are your plans for keeping your physical health as good as you can possibly keep it? So, I hope you found that helpful.
If you did, please leave a quick thumbs up,
thank you, and take care..
2 Early Milestones in the Game of Retirement Life
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Loren the Game of Life it came out
in 1960. A board game that you had in your household growing up? Most definitely we played lot of games growing up and this is one
of them. Okay so today what we want to do is we want to go through the milestones of life we're
kind of going to do it in numbers. So in a way we're taking some liberties here the board game is
like a series of numbers as you move through life. And as we specifically talk about moving to and
through retirement what we want to do is give you strategies give you tips gives you things you
should be talking to a retirement planner about. And we'll have a little fun with the Game of Life
along the way. But we should first talk about how we look at every retirement whether you come
talk with you Loren if you're 55 or 75. We apply five guiding principles to your retirement
to help you win the game of life.
Yeah there's two distinct phases of life there's accumulation years
then there's the retirement years. And when it comes to those retirement years that's when it's
important to really start to get organized in the form of retirement plan. And in that retirement
plan there are five guiding principles. When you retire you still need income your W-2 wages
go away where's the income going to come from? When you take income you're still going to have to
pay taxes there's long-term care Medicare planning legacy planning and then of course the fifth one
is the investment planning principle. Okay so we have our cars this is the cutest little thing I've
got six people in my car because I've got four children and my husband in here.
Loren has his
daughter Jace and the little dog Coco no Mocha, Mocha is in the car with Loren. So Loren like I
said we're gonna have a little fun with this. Why don't you spin once for the first time and then
we won't spin to continue. But we'll get started on our game. Oh two, alright Loren gets started on
two. Would you like me to take the, goes he goes two. And let's draw a card just fun so we can kind
of refresh ourselves on what the cards are for the Game of Life. I'll draw the card, I'll answer the
first one. Alright you go first. Ah get a pool, I like this first card you probably like that
Jace would like to get a pool as well. So it says pay the bank $50,000. Wow, pools are expensive.
Well, that sounds a lot like today's prices. So that's the first stop or the first card that we've
picked on the game of life.
Now the first stop on your journey to and through retirement as we
pull the numbers kind of on your board game is age 50. So you're going through the game of
life you hit age 50. What should you be thinking about in terms of retirement? From a retirement
planning standpoint age 50 is a milestone. A big portion of this milestone is now you're able
to contribute more towards your retirement savings than what you've ever been able to do before.
If you're under age 50 into your IRA the max you can contribute is $6,000 but at age 50 you
have a thousand dollar catch-up contribution. So a total now of $7,000 but here's
where the real fun comes into play. At age 50 is through your employer sponsor plans
your 401k plans.
Before age 50 you could only contribute up to $19,500 you get an extra $6,500
contribution bonus if you will. Once you obtain age 50 for a total contribution of $26,000. So
now if you're age 50 or beyond you can actually contribute the max to your 401k plan. And if you
qualify from an income standpoint also you can contribute the max to your IRA. So, the 7,000 plus
the 26.5 now you can start saving for retirement and accumulate that wealth a lot more quicker.
And you ever have conversations with people about you know is it usually a no-brainer contribute
that 6,500 or do they have to look at all the other moving pieces in their life too. Because at
50 I know I'll still have kids at home, a lot of people still have kids at home so that 6,500 feels
like a lot of money. It does feel like a lot of money and so it's different for everybody. In each
one of these milestones that we talk about here on this on this show. The outcomes or the strategies
that you incorporate with it will be different for everybody. And that's the necessity of a
customized written plan as you make the transition from the working years to the retirement years.
Your life your circumstances your resources that you have your cash flow is different than most
other people.
So your plan needs to be customized to your circumstance. Okay I have to spin I
know I cannot spin a two that's not hard to do, I got three okay I'm gonna take the bus here
go with me and the four kids we got three. Alright here we go, promotion!
Your hard work paid off spin again. So a promotion obviously is a real piece of
retirement and the nice thing about a promotion is maybe you can contribute a little bit more to
that 401k or or do a little bit more retirement planning as those promotions come along so. Let's
talk about our next stop on the game of life retirement style and it's age 55. What do we need
to know there? Age 55 is an important milestone because now if you separate service from your
employer and you have an employer-sponsored plan now you have penalty free withdrawal privilege.
And this is a very little known loophole as it relates to these employer-sponsored plans. So,
if you're working with your employer you're 56 years old you retire or you get laid off or you
just decide hey i'm going to go somewhere else if you take your distributions from that employer
plan you will not have to pay that 10% penalty even though you're under age 59 and a half.
So a
lot of people think 59 and a half I take money out of my retirement plan I'm going to be imposed
that 10% penalty but if you take it after you separate service post 55 from that employer plan
you don't have that 10% penalty. And when you say take it can you take it all at once is that the
best strategy typically or do you want to spread that out? Well there's a couple different things
that goes into that. Let's say you can take it all once so if you have $200,000 underneath your
employer plan your 56 you leave that employer. You can take that full $200,000 out but if it's
pre-tax money meaning it's never been taxed before it's going to jump you up into a tax bracket that
is ugly.
So even though you can, you may not want. So you can't put it in an IRA or something right
away? You can put it into an IRA but once you do so now that money lives underneath the IRA rules.
Which means you cannot take it out until 59 and a half without the 10% penalty so here's where a
lot of the planning will come into play especially if you want to retire prior to 59 and a half.
Is you may choose to leave that $200,000 there maybe you have some other IRA money that you know
you're not going to use until post 59 and a half or you can say between 56 and 59 and a half you're
only going to need a 100,000 of that so many times the employer's plan will allow you to roll the
100,000 keep a 100,000 there and then you can use that for the penalty free cash flow.
Thank you
for watching this clip of retiring today and don't forget to subscribe. If you have questions
about your retirement plan, take advantage of the complimentary 15-minute
retirement checkup phone call..
Retirement Planning in Your 50s and Beyond
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Your 50s are an excellent time to get serious
about retirement planning, and that's because at this point in your life, you may have figured
a couple of things out. You might have a decent idea of where you
spend money, what your preferences are, the things you don't care for so much, and you
might also have some financial advantages at this point in life. Perhaps you've paid off a lot of debt maybe. If you had kids, they're out of the house
or almost independent. And you might be in your peak earnings years
because you have gained some expertise and some knowledge in whatever it is you do for
a living, and one big reason to get serious is you might have more money than you've ever
had before saved up so now it really counts. A 10 % loss in the markets, for example, hurts
a lot more than it did when you were 22 years old.
But whether you're just getting started saving
for retirement or you've been doing it for decades there are some important things that
come up in your 50s that can help you pave the way to a smoother retirement down the
road. The first thing to watch for is catch-up contributions,
and this is not the condiment, this is a catch-up contribution that allows you to put extra
into your retirement accounts each year once you reach age 50. The IRS sets maximum limits on how much you
can contribute to those accounts, but at 50, you can do a little bit extra and that helps
to boost what goes into those accounts each year for example in your 401k or 403 b or
governmental 457 you can put in an extra six thousand six hundred dollars per year as a
catch-up contribution on top of the max that you had back when you were 49 years old and
your knees didn't hurt as much.
For traditional and Roth IRAs, for 2022 that
number is a thousand dollars of extra catch-up contributions. Of course, this is assuming that you have
the cash flow to make the maximum contribution and put the catch-up contribution on top of
that, and if you don't, that's okay, it's not feasible for everybody, just do what you
can. But if you are really trying to maximize your
account balances at retirement, those catch ups are a powerful tool. The next thing to do is to look at your Social
Security and pension benefits. It's a good time to start getting a realistic
expectation of what you might get, and that's because you might assume that you're going
to get a lot more or a lot less, but it's really helpful to start figuring out how those
systems work and how much you can expect each month.
If you're eligible for Social Security, you'll
want to go through your earnings history and make sure that that is accurate because if
any years are missing you may end up with a smaller monthly retirement benefit. Your benefit is based on your 35 highest earnings
years, so you want to make sure that those good earning years are in there and that you
don't have any unnecessary zeros in your history. Keep in mind that you may be able to get some
retirement benefits from a former spouse or your current spouse, so if you're widowed
or divorced, for example, you want to research those potential benefits and you might also
be able to get income on your spouse's earnings record if you are still married and there,
are some strategies you'll want to look at as you go through that process.
By the way, I'm Justin Pritchard, and i help
people plan for retirement and invest for the future. So, there will be some resources down in the
description below that cover this in more detail and give you some other pointers. Another smart move is to manage your debts
or make a strategy for them. So, if you have consumer debts like credit
cards for example, you definitely want to plan to eliminate those debts and make sure
that your spending stays within your income limits so that you're not digging yourself
a hole during retirement or as you head towards retirement. But what about so-called "good debts" in retirement? For example, a mortgage.
There's a lot of benefit to being debt-free
and not having a mortgage payment when you're in retirement a lot of people really focus
on getting rid of that loan before their retirement date but it's not necessarily the end of the
world to have a mortgage in retirement, and paying it off quickly out of your retirement
funds can cause some problems. As long as you can fit that monthly payment
into your income maybe that's your Social Security, pensions, and some withdrawals from
savings accounts, and you can manage that debt comfortably, then again, it's not the
end of the world, and remember that that loan payment will eventually go away someday which
frees up cash flow for other expenses maybe health care expenses later in life. Speaking of expenses, how much are you going
to need to spend? Well, that's something to start figuring out
and there are a couple of different ways to do that this video that's going to pop up
above will give you some pointers on that but basically you can look at your spending
today and maybe adjust that for inflation or you might look at an income replacement
ratio and say maybe I just need 80 percent of what I'm earning now that might or might
not be right for you or you can target a certain level of spending such as $50 or $100,000
whatever the case may be, and with those numbers you can set a goal to start heading for once
you have an idea of your spending and your retirement income sources and your assets
then you can run some calculations and again we're setting your expectations so that you
know if you're on track or not and this can alert you to some potential shortfalls or
maybe let you know if you could retire earlier than maybe you expected there are a lot of
helpful online calculators out there they can do a decent job of getting you in the
ballpark but make sure you understand what their limitations might be so they don't necessarily
get super detailed and you might not be able to adjust all of the assumptions but again
you can get some basic ideas of if you're sort of close or if you're way off on what
you expected another good move in your 50s is to refine your investment strategy so up
to this point you may have been doing some great things to get you to the point where
you are you've built up some nice assets but if you've been using high risk strategies
maybe speculating maybe day trading that sort of thing it's time to ask yourself if that's
something that you want to continue doing at this stage in life it is difficult to consistently
get good results with those high risk approaches and you might have more to lose now than you
did previously.
I'm not saying you can't do it or definitely
don't do it but I would say proceed with extreme caution and maybe just say hey I've done a
good job up to this point maybe I'll reevaluate what I'm going to do going forward. At 50 it's time to start thinking about long-term
care if you haven't already been thinking about it there's a 70 percent chance that
you might need some type of long-term care and that might include everything from somebody
helping you out at home maybe this is a loved one assuming you have somebody at home who
is willing and able and remember it could be physically and emotionally difficult and
it might require expertise but it could include somebody helping you out at home who you know
or you going into a skilled nursing facility and paying those higher costs that are associated
with that higher level of care there are several ways to deal with the costs and that might
include a long-term care insurance policy but those are kind of problematic so definitely
look into them but consider some other alternatives as well maybe instead of maybe to supplement
or maybe you just go with insurance but some other options include saving up assets and
earmarking those for a long-term care event or maybe looking at your home equity as a
safety net to cover some of those big expenses that's not necessarily a fun way to spend
your time so one of the other things you can do is envision how you want your retirement
to unfold and this is a really important step that a lot of people skip it's important to
have something to do with yourself once you stop working you might have gotten a lot of
your social engagement a lot of your meaning and some of your identity out of your work
and you might want to not necessarily admit that but for a lot of people that's the case
it's easy to say that the main thing you're looking forward to in retirement is not going
to work but you probably want to have some ideas on how you're going to fill your time
and that way you're going to number one enjoy it more and number two there might be some
real benefits in terms of your mental and physical health if you are retiring to something
as opposed to just retiring from work, so ask yourself how will you fill your days? What are you most excited about and interested
in? What can you do to find some meaning and some
purpose during that time? And who might you spend time with, and what
are your plans for keeping your physical health as good as you can possibly keep it? So, I hope you found that helpful.
If you did, please leave a quick thumbs up,
thank you, and take care..
2 Early Milestones in the Game of Retirement Life
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Loren the Game of Life it came out
in 1960. A board game that you had in your household growing up? Most definitely we played lot of games growing up and this is one
of them. Okay so today what we want to do is we want to go through the milestones of life we're
kind of going to do it in numbers. So in a way we're taking some liberties here the board game is
like a series of numbers as you move through life. And as we specifically talk about moving to and
through retirement what we want to do is give you strategies give you tips gives you things you
should be talking to a retirement planner about. And we'll have a little fun with the Game of Life
along the way.
But we should first talk about how we look at every retirement whether you come
talk with you Loren if you're 55 or 75. We apply five guiding principles to your retirement
to help you win the game of life. Yeah there's two distinct phases of life there's accumulation years
then there's the retirement years. And when it comes to those retirement years that's when it's
important to really start to get organized in the form of retirement plan. And in that retirement
plan there are five guiding principles. When you retire you still need income your W-2 wages
go away where's the income going to come from? When you take income you're still going to have to
pay taxes there's long-term care Medicare planning legacy planning and then of course the fifth one
is the investment planning principle. Okay so we have our cars this is the cutest little thing I've
got six people in my car because I've got four children and my husband in here. Loren has his
daughter Jace and the little dog Coco no Mocha, Mocha is in the car with Loren.
So Loren like I
said we're gonna have a little fun with this. Why don't you spin once for the first time and then
we won't spin to continue. But we'll get started on our game. Oh two, alright Loren gets started on
two. Would you like me to take the, goes he goes two. And let's draw a card just fun so we can kind
of refresh ourselves on what the cards are for the Game of Life. I'll draw the card, I'll answer the
first one. Alright you go first. Ah get a pool, I like this first card you probably like that
Jace would like to get a pool as well. So it says pay the bank $50,000. Wow, pools are expensive.
Well, that sounds a lot like today's prices.
So that's the first stop or the first card that we've
picked on the game of life. Now the first stop on your journey to and through retirement as we
pull the numbers kind of on your board game is age 50. So you're going through the game of
life you hit age 50. What should you be thinking about in terms of retirement? From a retirement
planning standpoint age 50 is a milestone. A big portion of this milestone is now you're able
to contribute more towards your retirement savings than what you've ever been able to do before.
If you're under age 50 into your IRA the max you can contribute is $6,000 but at age 50 you
have a thousand dollar catch-up contribution. So a total now of $7,000 but here's
where the real fun comes into play. At age 50 is through your employer sponsor plans
your 401k plans. Before age 50 you could only contribute up to $19,500 you get an extra $6,500
contribution bonus if you will. Once you obtain age 50 for a total contribution of $26,000. So
now if you're age 50 or beyond you can actually contribute the max to your 401k plan.
And if you
qualify from an income standpoint also you can contribute the max to your IRA. So, the 7,000 plus
the 26.5 now you can start saving for retirement and accumulate that wealth a lot more quicker.
And you ever have conversations with people about you know is it usually a no-brainer contribute
that 6,500 or do they have to look at all the other moving pieces in their life too. Because at
50 I know I'll still have kids at home, a lot of people still have kids at home so that 6,500 feels
like a lot of money. It does feel like a lot of money and so it's different for everybody. In each
one of these milestones that we talk about here on this on this show. The outcomes or the strategies
that you incorporate with it will be different for everybody. And that's the necessity of a
customized written plan as you make the transition from the working years to the retirement years.
Your life your circumstances your resources that you have your cash flow is different than most
other people.
So your plan needs to be customized to your circumstance. Okay I have to spin I
know I cannot spin a two that's not hard to do, I got three okay I'm gonna take the bus here
go with me and the four kids we got three. Alright here we go, promotion!
Your hard work paid off spin again. So a promotion obviously is a real piece of
retirement and the nice thing about a promotion is maybe you can contribute a little bit more to
that 401k or or do a little bit more retirement planning as those promotions come along so.
Let's
talk about our next stop on the game of life retirement style and it's age 55. What do we need
to know there? Age 55 is an important milestone because now if you separate service from your
employer and you have an employer-sponsored plan now you have penalty free withdrawal privilege.
And this is a very little known loophole as it relates to these employer-sponsored plans. So,
if you're working with your employer you're 56 years old you retire or you get laid off or you
just decide hey i'm going to go somewhere else if you take your distributions from that employer
plan you will not have to pay that 10% penalty even though you're under age 59 and a half. So a
lot of people think 59 and a half I take money out of my retirement plan I'm going to be imposed
that 10% penalty but if you take it after you separate service post 55 from that employer plan
you don't have that 10% penalty.
And when you say take it can you take it all at once is that the
best strategy typically or do you want to spread that out? Well there's a couple different things
that goes into that. Let's say you can take it all once so if you have $200,000 underneath your
employer plan your 56 you leave that employer. You can take that full $200,000 out but if it's
pre-tax money meaning it's never been taxed before it's going to jump you up into a tax bracket that
is ugly.
So even though you can, you may not want. So you can't put it in an IRA or something right
away? You can put it into an IRA but once you do so now that money lives underneath the IRA rules.
Which means you cannot take it out until 59 and a half without the 10% penalty so here's where a
lot of the planning will come into play especially if you want to retire prior to 59 and a half.
Is you may choose to leave that $200,000 there maybe you have some other IRA money that you know
you're not going to use until post 59 and a half or you can say between 56 and 59 and a half you're
only going to need a 100,000 of that so many times the employer's plan will allow you to roll the
100,000 keep a 100,000 there and then you can use that for the penalty free cash flow.
Thank you
for watching this clip of retiring today and don't forget to subscribe. If you have questions
about your retirement plan, take advantage of the complimentary 15-minute
retirement checkup phone call..
The 4% Rule for Retirement: What You Need to Know!
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
one of the most common retirement planning
questions people have is how much money can I pull from my portfolio every year and live on
in retirement and that's where the four percent rule comes in handy and it basically says that
if you can pull four percent or less from your Diversified portfolio invested in things like
stocks and bonds and live off of that amount while keeping the rest invested then there's
a good chance that your money is going to last 20 30 years or more and as a frame of reference
if you had a million dollars then four percent would be forty thousand dollars if you had
five hundred thousand dollars it would be twenty thousand dollars per year and it's not
set in stone it is based off a study that was done many years ago and has held up well over
time but there are instances where people as they get older could pull more or if they retire
early maybe they want to consider even doing less than that but it's a really good way to get
a frame of reference on looking at how much you've saved and what that can translate
into in retirement as far as income goes
Retirement Planning in Your 50s and Beyond
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Your 50s are an excellent time to get serious
about retirement planning, and that's because at this point in your life, you may have figured
a couple of things out. You might have a decent idea of where you
spend money, what your preferences are, the things you don't care for so much, and you
might also have some financial advantages at this point in life. Perhaps you've paid off a lot of debt maybe. If you had kids, they're out of the house
or almost independent.
And you might be in your peak earnings years
because you have gained some expertise and some knowledge in whatever it is you do for
a living, and one big reason to get serious is you might have more money than you've ever
had before saved up so now it really counts. A 10 % loss in the markets, for example, hurts
a lot more than it did when you were 22 years old. But whether you're just getting started saving
for retirement or you've been doing it for decades there are some important things that
come up in your 50s that can help you pave the way to a smoother retirement down the
road. The first thing to watch for is catch-up contributions,
and this is not the condiment, this is a catch-up contribution that allows you to put extra
into your retirement accounts each year once you reach age 50.
The IRS sets maximum limits on how much you
can contribute to those accounts, but at 50, you can do a little bit extra and that helps
to boost what goes into those accounts each year for example in your 401k or 403 b or
governmental 457 you can put in an extra six thousand six hundred dollars per year as a
catch-up contribution on top of the max that you had back when you were 49 years old and
your knees didn't hurt as much. For traditional and Roth IRAs, for 2022 that
number is a thousand dollars of extra catch-up contributions. Of course, this is assuming that you have
the cash flow to make the maximum contribution and put the catch-up contribution on top of
that, and if you don't, that's okay, it's not feasible for everybody, just do what you
can. But if you are really trying to maximize your
account balances at retirement, those catch ups are a powerful tool.
The next thing to do is to look at your Social
Security and pension benefits. It's a good time to start getting a realistic
expectation of what you might get, and that's because you might assume that you're going
to get a lot more or a lot less, but it's really helpful to start figuring out how those
systems work and how much you can expect each month. If you're eligible for Social Security, you'll
want to go through your earnings history and make sure that that is accurate because if
any years are missing you may end up with a smaller monthly retirement benefit.
Your benefit is based on your 35 highest earnings
years, so you want to make sure that those good earning years are in there and that you
don't have any unnecessary zeros in your history. Keep in mind that you may be able to get some
retirement benefits from a former spouse or your current spouse, so if you're widowed
or divorced, for example, you want to research those potential benefits and you might also
be able to get income on your spouse's earnings record if you are still married and there,
are some strategies you'll want to look at as you go through that process. By the way, I'm Justin Pritchard, and i help
people plan for retirement and invest for the future. So, there will be some resources down in the
description below that cover this in more detail and give you some other pointers. Another smart move is to manage your debts
or make a strategy for them.
So, if you have consumer debts like credit
cards for example, you definitely want to plan to eliminate those debts and make sure
that your spending stays within your income limits so that you're not digging yourself
a hole during retirement or as you head towards retirement. But what about so-called "good debts" in retirement? For example, a mortgage. There's a lot of benefit to being debt-free
and not having a mortgage payment when you're in retirement a lot of people really focus
on getting rid of that loan before their retirement date but it's not necessarily the end of the
world to have a mortgage in retirement, and paying it off quickly out of your retirement
funds can cause some problems.
As long as you can fit that monthly payment
into your income maybe that's your Social Security, pensions, and some withdrawals from
savings accounts, and you can manage that debt comfortably, then again, it's not the
end of the world, and remember that that loan payment will eventually go away someday which
frees up cash flow for other expenses maybe health care expenses later in life. Speaking of expenses, how much are you going
to need to spend? Well, that's something to start figuring out
and there are a couple of different ways to do that this video that's going to pop up
above will give you some pointers on that but basically you can look at your spending
today and maybe adjust that for inflation or you might look at an income replacement
ratio and say maybe I just need 80 percent of what I'm earning now that might or might
not be right for you or you can target a certain level of spending such as $50 or $100,000
whatever the case may be, and with those numbers you can set a goal to start heading for once
you have an idea of your spending and your retirement income sources and your assets
then you can run some calculations and again we're setting your expectations so that you
know if you're on track or not and this can alert you to some potential shortfalls or
maybe let you know if you could retire earlier than maybe you expected there are a lot of
helpful online calculators out there they can do a decent job of getting you in the
ballpark but make sure you understand what their limitations might be so they don't necessarily
get super detailed and you might not be able to adjust all of the assumptions but again
you can get some basic ideas of if you're sort of close or if you're way off on what
you expected another good move in your 50s is to refine your investment strategy so up
to this point you may have been doing some great things to get you to the point where
you are you've built up some nice assets but if you've been using high risk strategies
maybe speculating maybe day trading that sort of thing it's time to ask yourself if that's
something that you want to continue doing at this stage in life it is difficult to consistently
get good results with those high risk approaches and you might have more to lose now than you
did previously.
I'm not saying you can't do it or definitely
don't do it but I would say proceed with extreme caution and maybe just say hey I've done a
good job up to this point maybe I'll reevaluate what I'm going to do going forward. At 50 it's time to start thinking about long-term
care if you haven't already been thinking about it there's a 70 percent chance that
you might need some type of long-term care and that might include everything from somebody
helping you out at home maybe this is a loved one assuming you have somebody at home who
is willing and able and remember it could be physically and emotionally difficult and
it might require expertise but it could include somebody helping you out at home who you know
or you going into a skilled nursing facility and paying those higher costs that are associated
with that higher level of care there are several ways to deal with the costs and that might
include a long-term care insurance policy but those are kind of problematic so definitely
look into them but consider some other alternatives as well maybe instead of maybe to supplement
or maybe you just go with insurance but some other options include saving up assets and
earmarking those for a long-term care event or maybe looking at your home equity as a
safety net to cover some of those big expenses that's not necessarily a fun way to spend
your time so one of the other things you can do is envision how you want your retirement
to unfold and this is a really important step that a lot of people skip it's important to
have something to do with yourself once you stop working you might have gotten a lot of
your social engagement a lot of your meaning and some of your identity out of your work
and you might want to not necessarily admit that but for a lot of people that's the case
it's easy to say that the main thing you're looking forward to in retirement is not going
to work but you probably want to have some ideas on how you're going to fill your time
and that way you're going to number one enjoy it more and number two there might be some
real benefits in terms of your mental and physical health if you are retiring to something
as opposed to just retiring from work, so ask yourself how will you fill your days? What are you most excited about and interested
in? What can you do to find some meaning and some
purpose during that time? And who might you spend time with, and what
are your plans for keeping your physical health as good as you can possibly keep it? So, I hope you found that helpful.
If you did, please leave a quick thumbs up,
thank you, and take care..
The Psychology Of Retirement: Transitioning Effectively
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Okay, before we go anywhere in a discussion of moving from permanent employee to permanent retiree, allow'' s speak regarding these two words and define them a little bit extra, modifications and also transitions.Changes are external,
they ' re contextual, and also'they ' re public, whereas shifts are interior, they ' re private, and they ' re mental. We ' re going to have to discover methods to maintain our mind going, and also I ' m not just chatting about doing crossword problems. Several of us put on ' t recognize exactly how to do that so I ' ve produced this roadmap to lead you through.
Okay, prior to we go anywhere in a discussion of relocating from permanent employee to full time retiree, allow'' s speak regarding these two words and also define them a little bit much more, changes as well as transitions.Changes are outside,
they ' re contextual, as well as'they ' re public, whereas changes are interior, they ' re exclusive, and they ' re mental. Possibly there ' s an enthusiasm project you ' ve always desired to obtain to. You desire to take your career to the following degree and also not completely retire, however do some kind of work that ' s related to what you ' ve done previously, or perhaps also take up that interest job. Many of us put on ' t recognize exactly how to do that so I ' ve produced this roadmap to direct you via. The web link for that document, it ' s a PDF and also it ' s your own for the download, is appropriate beneath this video.
Read MoreRetirement Planning in Your 50s and Beyond
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Your 50s are an outstanding time to buckle down
regarding retired life planning, as well as that'' s because now in your life, you may have figured
a number of points out. You may have a decent idea of where you
invest cash, what your preferences are, the points you don'' t look after so much, and also you
Possibly you'' ve paid off a whole lot of financial debt possibly.
your knees didn'' t hurt as much.For typical as well as Roth IRAs, for 2022 that. number is a thousand bucks of added catch-up contributions. Certainly, this is thinking that you have.
the cash money circulation to make the maximum contribution and also put the catch-up contribution in addition to.
that, and also if you don'' t', that ' s alright, it ' s not feasible for everyone, just do what you. can. If you are truly attempting to maximize your.
account equilibriums at retired life, those catch ups are a powerful device. The next thing to do is to check out your Social.
It'' s an excellent time to begin obtaining
a realisticReasonable If you'' re eligible for Social Protection, you ' ll. You may be able to obtain some.
be able to get income on your partner'' s incomes record if you are still wed as well as there,.
are some approaches you'' ll intend to look at as you go via that procedure. By the means, I'' m Justin Pritchard, and i aid.
individuals prepare for retirement as well as invest for the future. There will certainly be some resources down in the.
summary below that cover this in even more detail and also offer you some other pointers. An additional wise step is to handle your financial debts.
or make a technique for them.So, if you have consumer debts like credit rating.
cards for example, you most definitely wish to intend to remove those financial obligations and also make certain.
that your spending stays within your earnings limitations to ensure that you'' re not digging yourself.
A mortgage. There'' s a whole lot of advantage to being debt-free.
and also not having a home mortgage settlement when you'' re in retired life a great deal of individuals really concentrate. on getting rid of that financing prior to their retirement date however it'' s not always the end of the. globe to have a mortgage in retirement, as well as paying it off swiftly out of your retirement.
funds can create some troubles. As long as you can fit that month-to-month payment.
right into your earnings possibly that'' s your Social Protection, pensions, and also some withdrawals from.
interest-bearing accounts, as well as you can handle that financial obligation pleasantly, however, it'' s not
the. end of the globe, and keep in mind that that car loan settlement will at some point disappear sooner or later which.
Well, that ' s something to begin figuring out.
above will certainly provide you some reminders on that particular yet essentially you can consider your costs.
today as well as perhaps adjust that for rising cost of living or you could look at an earnings substitute.
ratio and also claim possibly I simply need 80 percent of what I'' m gaining now that may or might. not be appropriate for you or you can target a particular level of investing such as $50 or $100,000.
whatever the instance might be, and also with those numbers you can establish a goal to begin heading for when.
you have a concept of your investing and also your retired life income sources and also your assets.
then you can run some estimations and also once more we'' re establishing your expectations to ensure that you.
understand if you'' re on course or otherwise as well as this can inform you to some possible deficiencies or.
possibly let you recognize if you might retire earlier than possibly you anticipated there are a great deal of.
valuable on-line calculators available they can do a respectable work of obtaining you in the.
ballpark however ensure you comprehend what their constraints may be so they put on'' t necessarily. get extremely thorough as well as you might not have the ability to adjust all of the assumptions yet once more.
you can get some fundamental suggestions of if you'' re kind of close or if you'' re way off on what.
you anticipated an additional excellent relocate your 50s is to fine-tune your financial investment strategy so up.
to this factor you may have been doing some fantastic points to obtain you to the factor where.
you are you'' ve accumulated some wonderful properties yet if you'' ve been utilizing high risk techniques.
maybe hypothesizing perhaps day trading that type of point it'' s time to ask on your own if that ' s. something that you want to continue doing at this stage in life it is difficult to continually.
get excellent results with those high risk approaches and also you may have even more to lose now than you.
did previously.I ' m not stating
you can ' t do it or absolutely. don ' t do it but I would certainly claim wage extreme caution and also possibly simply claim hey I'' ve done a.
excellent task as much as this factor possibly I'' ll reevaluate what I'' m going to do moving forward.'At 50 it ' s time to start believing regarding long-term.
care if you sanctuary'' t currently been believing about it there'' s a 70 percent chance that.
you might require some sort of long-term treatment which may include everything from someone.
aiding you out in your home possibly this is a loved one presuming you have someone at residence that.
wants and able and remember maybe literally as well as psychologically tough and also.
it might call for competence but it could consist of somebody aiding you out at house who you recognize.
or you entering into a knowledgeable nursing center and also paying those greater costs that are associated.
with that said greater degree of treatment there are a number of means to handle the expenses and also that might.
include a long-term treatment insurance plan yet those are type of troublesome so absolutely.
explore them however consider some other options also possibly rather than perhaps to supplement.
or perhaps you simply choose insurance policy yet some various other options consist of conserving up assets as well as.
setting aside those for a long-lasting treatment occasion or perhaps checking out your house equity as a.
security net to cover several of those big expenses that'' s not necessarily a fun method to spend.
your time so among the other points you can do is imagine how you desire your retirement.
to unravel and this is a really important step that a great deal of individuals miss it'' s important to.
have something to do with yourself when you stop functioning you might have obtained a great deal of.
your social interaction a great deal of your meaning and some of your identity out of your job.
and you could wish to not always confess that but also for a great deal of individuals that'' s the case. it ' s simple to claim that the main thing you'' re looking onward to in retired life is not going.
to work however you possibly intend to have some ideas on just how you'' re going to load your time.
which method you'' re mosting likely to top enjoy it more and second there may be some.
actual benefits in regards to your psychological and also physical health and wellness if you are retiring to something.
in contrast to simply retiring from job, so ask yourself how will you load your days? What are you most thrilled regarding and also interested.
in? What can you do to find some meaning and some.
objective during that time? And also who might you invest time with, and also what.
are your prepare for maintaining your physical health and wellness like you can possibly maintain it? So, I hope you found that helpful.If you did, please leave a quick thumbs up,.
thanks, and take treatment.
It'' s a great time to start getting
a realisticReasonable If you'' re eligible for Social Security, you ' ll. There'' s a whole lot of advantage to being debt-free.
Well, that ' s something to start figuring out. At 50 it ' s time to begin thinking concerning lasting.
Anna Downs Discusses Pre-Retirement Planning Tips
Jason 0 Comments Career after Retirement
foreign [Music] this is retired life news online sandwich between your occupation'' s last chapter as well as retired life is a transitional duration referred to as pre-retirement although there'' s no hard as well as quick policy for when this phase need to start if you'' re not taking note it might pass you by and leave you ill got ready for what follows and joining me is Anna downs as well as she methods in Superior Wisconsin Anna welcome back so the very first step is imagining your retired life right a couple of starting items of discussion is what does retirement look like for you do you wish to travel that'' s going to create a requirement for an extra investing greater than you are spending today what does your budget look like do you still have home loan repayments do you still have automobile settlements there are several aspects that need to be taken into account for us to really visualize what will certainly retirement resemble from there it assists us springboard onward in developing a plan together in layering the next actions so thinking of your customers exactly how do you establish an earnings plan there is a detailed procedure that I use when developing an earnings prepare for somebody in retirement initially we start with visualizing retired life several of the variables that we currently discussed do you intend to travel what does your budget plan resemble then moving on we discuss danger tolerance as well as durability at that factor we after that consider your Investments that you have in assembling a strategy that you feel comfortable with ultimately retirement can vary dramatically among retirees it'' s essential that you ' re functioning with a consultant that makes a plan customized to what your demands and also wishes are so a location that it'' s typically forgotten by individuals getting right into retired life are health and wellness care costs that'' s an important factor to consider best health insurance coverage costs can be among the greatest barriers for individuals to retire very early it is vital if you select to retire before the age of Medicare that you have either a strategy that'' s advanced from your previous employer or on your partner'' s prepare otherwise and also you require to purchase private health insurance policy it is earnings driven this is something that has an extra cost that you require to be completely gotten ready for it'' s essential to function carefully with your medical insurance representative your CPA and also your monetary organizer when buying medical insurance prior to Medicare age that'' s Anna Downs in Superior Wisconsin and also this is return retired life News on-line [Music]
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