Hi friends, welcome to Yadnya investment academy. We are going to talk about a topic of financial planning on Friday. And today's topic is very interesting. Because this question is asked regularly on many social media channels and workshops. That people have an amount in their mind that is 1 crore rupees. We think that if we have 1 crore rupees, our life will be good. So this question remains in the mind that if I have 1 crore rupees, can I retire now? Am I financially free? I don't have any tension of retirement now. Now whatever work I am doing is extra. So that 1 crore rupees is enough. And if you have retired now and got EPF money and total is 1 crore is it enough for you? And if it is enough or not, how much can you spend in both questions, when is enough and when is not. We will touch on all those things in this video. I will explain everything through a calculator. You can check that calculator on our website investyadnya.in as well. We cover many topics of financial planning in this session. If you want to make your own financial plan, then go to investyadnya.in website There are many products related to financial planning.
There are 1 to 1 sessions as well. You can check that out. Now I am going to my website and I am sure you can see my screen. If you go to the tool and calculator, here you can see the retirement calculator. I don't think you will get this anywhere else. Now the question is, suppose I have 1 crore rupees, is it enough for me to retire? First of all, I will be asked what is my age? I am just giving an example, 50.
Suppose I am 50 years old, what is my life expectancy? It is important to know when you will be retiring. I think we should keep it around 90. I am keeping it at 90. How much is the expense now? If you are retiring and you have 1 crore rupees, how much do you want to spend? What is your monthly or annual expense? Suppose I am thinking that I have 6 lakh rupees. I have put 6 lakh rupees here. How much inflation are you assuming? How much will my expenses increase every year? If India's inflation is around 6-7%, then you can assume that. Suppose 7% inflation till the end of life. Current asset, how much money do I have? I will put 1 crore rupees here. I have 1 crore rupees here. I will put that here.
How do you invest this 1 crore rupees? How much return will you be able to earn? This is a very important question. What type of investment do you want to put? Do you want to put it in PPF? Do you want to put it in Senior Citizen Savings Scheme? Or do you want to put it in FDs? Or do you want to create a portfolio of Mutual Funds like Hybrid Equity Funds? This is very important. Let's take all the scenarios. Suppose I want to put it in FDs. I don't want to do anything special.
I will get 7% return in FDs. Whatever is the post tax. Or whatever you think. You get 7.5% but let's keep 7% for calculation. Let's keep 7.5%. Let's keep 8%. We have put it in bonds, Senior Citizen Savings Scheme. And there is some money in EPF. So, we have kept some money in equity. So, my 8% will earn 1 crore rupees corpus. Which is 1% over inflation. I have taken 7% inflation and 8% returns.
I have to put these 6 fields first. If I submit this, My retirement corpus is in deficit of 1 crore. This means that I need 1 crore more to develop this scenario. If I am 50 years old and I have 6 lakhs per month. And 7% inflation. And 8% growth. I need 2 crores. 1 crore is not enough. Now, let's change the scenario. What should I do if I am not able to do it.
I can either reduce it. I don't spend Rs 50,000 per month. I can do 30,000. Then we can change the amount. We have done 36,000. And then we have put this change. So, 21 lakhs is still less. So, basically it will come to 3 lakhs. So, now our retirement corpus is only 67,000 less. So, I can spend 3 lakhs per year. If I can spend Rs 25,000 per month. And if I take 7% inflation. And 8% growth. Then 1 crore is enough in 50. If I spend 25,000. If I spend 50,000 with same scenario. Then I will need 1 crore. Now, you will say that I invest in mutual funds. I know investing well. And I think that my corpus can earn 10%. If 7% is inflation. Then I think that my corpus can earn 10% per annum.
Like our approach. You must have seen many videos on retirement. If you want to understand anything. Then put it in the comment section. If I think that I can do 10%. So, let's try it on 6% after spending 3 lakhs. So, now our corpus will be 47 lakhs. So, it means that I can spend 4 lakhs or 4.5 lakhs. So, 4.2 or 4.3. Means I can spend around Rs 35,000 per month. If I can earn 10% return. Now, you will say that I have already retired. I am 60 years old. And now tell me what is this scenario. So, in that I can spend 50,000 per month. So, in 60 years also if you are earning 10% return. Then there is a deficit of 24 lakhs. If this scenario plays. You say that I have inflation. I don't spend much.
50,000 per month. Next year, I will grow according to 5%. Then it is good. 5% inflation, 10% rate of return, 1 crore rupees. You have enough. You have just enough. So, you can spend 50,000 per month. If you are 60 years old, you will get that money for 90 years. Now, there is one more thing. Many people think that I have a pension. I have a house. He is giving rental. Or I am getting pension. Suppose you are getting pension of Rs 10,000 per month. Means it comes more than that. But I think 10,000 per month. So, I am getting a pension of 1,20,000. And we will make it 7 again.
Is there any growth of pension? It seems that 2-3% growth is there. So, let's grow it by 3%. Till when will the pension come? Will it come till 90? Will it come till life expectancy or will it come soon? Many times, for limited time, money is going to come. So, we sell those things. Rental is going to come. I have to sell that house after 10 years. So, you can put that also. So, I have to get pension till last. Till 90. So, then in 6 lakhs, 7% inflation, 1 crore, 10% and all. So, then almost I am there. Means 3 lakhs is the only deficit left. So, in this way, you can find out that the money you have, is it enough for your retirement? So, now you can change the amount.
If you have 2 crore, 3 crore or 50 lakhs, then you can change the amount. Accordingly, you can find out how much expense I will have after retirement, my work will go smoothly till life expectancy which I have planned. So, this will be very very helpful for you. So, if you like Calculator, then do share this video with everyone. I think this will be very helpful to many people in retirement planning. And from the perspective of financial freedom also. And if you want our financial plans and personalized approach, if you want to understand how to get 10% rate of return, or what all I can do after retirement, then you can go to our website and call our customer service, sales team or relationship team. You can WhatsApp or call or email. And then we will reach out to you and we will surely try to help you on those things.
That is all I have. I hope, do subscribe more. Because the topics of financial planning are not going on much. So, do subscribe and like the video if you like it. Have a great time, friends. Jai Hind..Read More
The other day, I was catching up with an old
friend and I realized we'd been friends for 27 years. I never thought I would have a
friendship that long, but that's how life works. The older you get the faster time seems
to fly by. And when retirement is looming, well, boy, does it start to speed up! So, if
you haven't started saving for retirement, don't panic. It is possible to start saving
when you're 45, 50, even 60, and still be able to retire, but you have to treat it like
the house is burning down. So pay attention. I'm Britt Baker, co-founder of Dow Janes, and today I'm giving you seven steps
to catch up on saving for retirement. First step is to get real about your
current situation. How much have you saved for retirement so far? How much will you
get from Social Security? Plug those numbers into a retirement calculator to see how much more
you need to save each month to be able to retire.
The next step is to start saving dramatically.
If you're 50 and you haven't saved anything for retirement, and you wanna be able to retire,
you need to start saving and investing 50% of your income each month, which means that
you're probably gonna either need to reduce your cost of living or increase your income.
If neither of those options are possible, you need to get real about your alternative,
which we'll talk about later in this video. Okay. Third step is to pay off any high-interest
rate debt that you have and build an emergency fund. You wanna do these two things before you
actually start saving for retirement.
The reason for this is that the high-interest rate debt is
costing you more than you're gonna make by having your money invested or even sitting — definitely
sitting — in a savings account, so if you try to start saving for retirement
before you pay off your debt, it's a bad idea. So if you have any savings
sitting around in a savings account, use it to pay off your high-interest rate debt
ASAP. Then you'll wanna build up an emergency fund. But note, if you have a backup plan,
this emergency fund, doesn't have to be huge. You wanna start saving for retirement as soon
as possible, so don't let this step hold you back if you have family or your children who
will support you in case of an emergency. Four is max out your contributions. So, at this
point, saving for retirement should be your number one priority. So you wanna contribute as much as
you can to your retirement accounts. If you have an employer-sponsored retirement account, like
a 401(k )or a 403(b) and your company offers matching contributions, you wanna make sure that
you're contributing as much as your employer will match.
This is free money, so take full advantage
of it. If you don't already have an IRA, set one up and max out those contributions as well. And if
you're self-employed open a solo 401(k) or SEP IRA and max out those contributions too. If you're
getting the theme, the idea is maxing out your contributions. All of these ways that I'm talking
about also allow you to lower your tax rate, so it's especially helpful.
The final way to do
it is if you have a high-deductible health plan, you can open an HSA and max that out too.
Basically, you wanna save as much money as you can in your various tax-advantaged accounts. And
know that if you're 50 or over, you're allowed to contribute a bit more than the standard maximum.
So look up the maximum amount and contribute that. Fifth step is to invest your savings.
So, even though you're starting late, it's not too late to start investing.
I hear this a lot — is it too late for me? Is it too late to start
investing? But it's absolutely not. One thing that's really helpful to remember
is that you don't have to take all of your retirement money out when you turn 67, if that's
the age that you choose to retire. As soon as you choose to retire, you only need to take out enough
to live on each year, really, even each month, so that you still can let the rest of the money stay
invested in your accounts so that they will grow for as long as they can, which you know, could
end up being another 30 years after retirement.
Next is to plan for your realistic retirement.
So once you've done the exercises in step one to figure out the actual situation you're in,
find out if you're going to have to work longer than you planned, you might need to be making
income for longer than you expected and just know that. The sooner you know that, the more you
can prepare for it. The next thing to consider is will you have to move somewhere with a lower
cost of living? This might be why some people choose to retire in Mexico.
Cost of living
is really expensive in the United States, especially in some cities. So if it's gonna make
your retirement a lot easier and a lot happier, consider a change in lifestyle.
Speaking of changing lifestyle, you might also have to downgrade what you are
used to to be able to afford to stop working. So consider the trade-offs. Would you rather work and keep up your lifestyle
or would you rather retire spend time with your grandkids and maybe not
go on the lavish vacations that you're used to? Whether you wanna travel or take art classes
or spend time with family, you wanna be able to enjoy your retirement without stress.
want some extra support on your journey towards saving money so you can actually retire, check
out our free class, Think Like an Investor. I'll put the link in the description below, and
remember it's never too late to start. So, even though you're getting a late start, it's
okay. There's absolutely hope. You have time. Just make sure you start saving, re-watch this
video, and remember the steps that you're supposed to do things in, and if you want some extra
support, feel free to join our member community, The Million Dollar Year.
We support tons of women
as they are just starting to save retirement in their forties and fifties, so we've
got you if you want the extra help..
hi my name is Jim and I was retired I'm back
from a week down in Florida and I was able to pack some sunshine in my overhead bags I
brought it back for a Super Bowl weekend go Eagles I've been reading a lot about
secure 2.0 that huge retirement bill that was included in the Omnibus Bill passed
at the last moments of the last Congress in this video I'm going to review nine ways secure
2.0 will change your retirement and I'm going to include three for people who are currently
saving for retirement three for those approaching retirement and three more for those like me
who are in retirement stay tuned hey before I begin will you please like And subscribe to this
channel the more likes the more subscriptions the higher this will be in the search results and I
want to share some of the Lessons Learned in my early retirement I'm now in year seven and I'm
a DIY retiree I'm not selling a book or trying to sell you a plan I'm just sharing advice so
please like And subscribe thank you now let's begin with three changes that affect those
who are currently in the workforce saving for retirement now these will phase in over time
as the law goes into effect and as plans change now beginning in 2025 employers must include
an automatic enrollment for new employees in their retirement savings plans those are the
401ks or 403bs it used to be when I was young you had to go and actively enroll
in those plans when you are eligible then they made it easier some plans to enroll and
by 2025 plans must include this option this is the exception for government plans to phase in after
that but mostly more people will have an automatic enrollment starting at three percent and working
its way up to 10 percent now you can always unelect and withdraw from the enrollment
but starting out employees will have to be automatically enrolled in the plans and that
means more people will be saving for retirement the second major change for current workers is
there are many more Roth options now 401K is a pre-tax dollars and you get a tax deduction if you
meet certain thresholds Roth you pay taxes today for the promise of tax-free interest and
withdrawals later in life it's one of the best inventions from a Delaware Senator ever look him
up Roth Last good Senator Delaware probably had so more Roth options are going in for
current employees those employees of small employers who are self-employed people
will have simple and SCP Roth options also more 401ks have Roth components and employees
can elect either tax free Roth in the future by paying taxes now or 401K pre-tax dollars it used
to be that employer contributions the match up to three percent in most cases would go into
the pre-tax dollars and the new law will now allow employers and employees to elect to have
those contributions the match contributions from the employer go into Roth accounts and that
means more Roth dollars for your retirement and it finally one change for those
that are still paying off a student loan employers will be allowed to match student
loan repayments by recognizing those as elective deferrals into their plans now again
that's up to the employer and right now student loan repayments are paused by the presidential
uh executive order and a court challenge so it may work out that in the future if you're paying
back a student loan your employer will match it into your retirement savings speaking of those
student loans and college tuitions there's one other change here in the new law and it relates
to 529 funds the new law allows you to take those excess 529 funds and transfer them with limits
into a Roth IRA for the same beneficiary now the 529 must be in existence for at least 15 years
contributions from the last five years are not eligible and the conversions are actually subject
to the Roth contribution limits so they're limited each year and there's a maximum lifetime limit
of thirty five thousand dollars but again it's a little way of moving anything that's parked into a
529 into your retirement Savings in a Roth account now there's another change for current
employees I want to caution you about that I'm not going to highlight as one of the
great ways this law is changing and that is you'll be able to withdraw from your retirement
plan without a 10 penalty for more reasons it used to be that you had to keep it there
until you were age 59 and a half and there were a few exceptions but that was it if you withdrew
earlier you got a 10 penalty and now there are additional reasons for national natural disasters
health concerns terminal illness domestic abuse personal financial emergencies up to a certain
level now you're allowed to withdraw all the money without the 10 penalty for these cases but
you'll still have to pay ordinary income taxes on those amounts a much better approach is to build
up an emergency fund of your own and don't touch the retirement dollars for these emergencies
now let's move on to three changes for those that are approaching retirement and there are big
changes for these workers number four in the nine ways is catch up contributions for those age
50 and above will now be indexed with inflation beginning in 2024 they were always increased
ever so sporadically by Congress and if you look at a video that I made early in my channel I
highlighted the contribution amounts because I've always believed that adding to those contribution
levels with catch-up contributions after your age 50 is very important pay down debt build up a cash
cushion and max out retirement savings well now that'll be easier to do because those contribution
limits for catch-up will be indexed to inflation now for instance a thousand dollar catch-up
contribution is allowed on IRAs and that dollar figure will go up over time in a 401k
the catch-up contribution is 7 500 and again that will go up over time so that's a big plus for
those that are approaching retirement and want to max out their retirement savings now beginning
in 2025 there will be an additional layer of catch-up contribution for those that are in ages
60 through 63 don't ask me why those numbers in that 64 65 and 66 too but for those people in that
bracket they will be allowed to contribute with a catch-up contribution of ten thousand dollars or
150 percent of the age 50 catch-up limit as that goes up with the index now there's a caution
here and that's number six on the big changes there's a requirement that the catch-up
contributions must go into a Roth account if your salary is more than 145 000 so you and your
tax consultant will have to figure out when those catch up contributions make sense and finally let
me highlight three final reasons of the nine why secure 2.0 will change your retirement and these
apply to those of us who are currently retired and number seven is that we will see later rmd
ages now secure the original act in 2019 raised the rmd age from 70 and a half to 72.
2.0 now raises it further based on how old you are for those of us born in the 50s the rmd age
will be 73. if you're born in 1960 or after the rmd age will be 75. so that means
there'll be more wiggle room for planning Roth conversions and tax planning between
retirement and those rmd dates the rmds exist because it's Uncle Sam's way of making
sure tax deferred dollars eventually get taxed there's another little quirk in here about
inheriting a retirement account from your spouse it used to be that if you had inherited an IRA
for instance from your spouse it was rolled into yours and now with these different rmd ages they
added a little wrinkle if the younger spouse dies for instance and she had a r d age of 75 the
older spouse could elect to instead of rolling it into his Ira treat it as if the spouse were
still alive and start taking rmds at the age the spouse would have been 75.
It's a little Quirk and
I don't know who stuck that in a bill but oh well number eight on the changes is a lessening of
the penalty for missing an rmd it used to be if you forgot to make an rmd you were taxed at 50
percent of that rmd level and it went to Uncle Sam now that penalty that excise tax on
a missed rmd will go to 25 percent or 10 if you correct it in a timely manner there's
still some regulations to specify what timely means but overall that means less chance of a very
expensive mistake with your rmds even a 10 penalty is not worth it just plan to take your rmds if
they're required finally number nine secure 2.0 eliminates rmds for Roth 401ks there was a
quirk in the old tax code that an a Roth IRA had no rmds but a Roth 401k did now most people is
simply rolled over the Roth 401k into a Roth IRA before that rmdh and that's what I was planning
to do this law just makes that unnecessary I'll probably go ahead and do it anyway to simplify my
bookkeeping note that that change on Roth 401ks will take place in 2024.
If you're due to
take an rmd for a Roth 401k this year you should probably roll it over before that rmd
age so those are my nine ways that the secure 2.0 will change your retirement now there are
a ton of other changes in fact my eyes were going blurry trying to read all of these things
in the last month I think it's called secure because it's going to secure the jobs of
financial planners tax accountants and IRS agents for quite some time but I'll close with
my standard warning I am not a financial planner I'm just a DIY retiree so please take these as
entertaining ideas from one educated consumer to another always do your own due diligence and
seek out a professional if you need one thanks
[Music] Consuelo Mack: On WEALTHTRACK, why a reassessment
of retirement planning is in order. Christine Benz: Given how elevated the market
is and low return expectations for fixed incomes securities for stocks, the tricky part is
that people embarking on retirement today need to probably take less than that four
percent, they would probably need to start more in the range of three percent. [Music] Consuelo Mack: Morningstar's personal finance
guru Christine Benz joins us with her checklist on Consuelo Mack WEALTHTRACK. Announcer: Funding provided by ClearBridge
Investments, Morgan Le Fay Dreams Foundation, First Eagle Investment Management, Royce Investment
Partners, Matthews Asia and Strategas Asset Management. [Music] Consuelo Mack: Hello, and welcome to this
edition of WEALTHTRACK. I'm Consuelo Mack. One of the biggest changes of the past year
has been the record number of Americans who are quitting their jobs. It is so pronounced that it has a name. It's called the Great Resignation. The so-called quit rate has exceeded pre-pandemic
highs for months. Millions of Americans have walked out the
door. A sizable number are starting their own businesses. According to the Wall Street Journal, since
the pandemic began, the number of unincorporated self-employed workers has risen by more than
half a million to nearly 10 million, one of the highest levels in years, and the number
of applications for federal tax ID numbers to register new businesses soared to nearly
five million, the highest number on record.
Another huge contributor to the Great Resignation
is the surge in retirement. Since March of 2020, the number of adults
55 and older who retired was nearly two million more than the rate was pre-pandemic. What the Great Resignation means for retirement
planning is just one of the items on Christine Benz’s Financial To-Do List this year. Morningstar's Director of Personal Finance
is joining us for the 4th year in a row to help us get in personal financial shape. Benz, a WEALTHTRACK regular, is an acknowledged
personal finance guru. She has held the title of Morningstar's Director
of Personal Finance since 2008. She writes daily personal finance columns
for Morningstar, does interviews and podcasts, and is the author of several books, including
30 Minute Money Solutions, A Step-by-Step Guide to Managing Your Finances, and The Morningstar
Guide to Mutual Funds: Five Star Strategies for Success.
She has also been named to Barron's List of
100 Most Influential Women in U.S. Finance for the last two years. I began our conversation by asking her about
the impact the Great Resignation could have on retirement planning. Christine Benz: Well, I think there are a
few things that people who are hanging it up from work need to be thinking about with
respect to retirement planning. One is that there's, sort of, the standard
rule of thumb for thinking about whether you have enough for retirement, and that's called
the Four Percent Guideline. And it basically means, could you live on
four percent of your portfolio plus whatever income sources you might have? So if you're taking Social Security, you'd
have that too. The tricky part is that given how elevated
the market is and low return expectations for fixed income securities, for stocks, the
tricky part is that people embarking on retirement today need to probably take less than that
They would probably need to start more in
the range of three percent. So I think people who are looking upon, drawing
upon their portfolio for their living expenses need to use that as a quick and dirty starting
point for assessing the viability of their retirement plans. Consuelo Mack: That's a big drop, Christine. I mean, from the four percent has been the,
kind of, the traditional assumption that you should plan on taking four percent of your
retirement savings, whatever, and that will last you for 30 years.
And, certainly, if you retire early, you're
going to have a longer retirement plan, but you're saying three percent, in general, now
that's the new standard? Christine Benz: Our research concluded that
if you have a 30-year time horizon, a balanced portfolio and you want to have like a 90 percent
probability of not running out of money during that 30-year time horizon, 3.3 percent is
a good starting point, that's probably overly precise I think if you were to be in that
three and a half percent range. But, certainly, people who have extended time
horizons, so people who expect to be retired for 40 or 50 years, and this would apply to
people in their 40s who are retiring today, they'd want to set that withdrawal rate even
lower, probably in the realm of two percent. And there, that starts to begin looking more
challenging in terms of, could you live on that amount? Consuelo Mack: And Christine, as far as the
Great Resignation is concerned and more and more people being self-employed, I mean, that
means they're not going to have a regular paycheck.
So the impact on retirement planning for someone
who's self-employed, what should they be thinking about? Christine Benz: Well, certainly, people who
are embarking on self-employment do have some vehicles that they can use to continue to
fund their own retirements. So IRAs, SEP IRAs for self-employed individuals. Health care, though, is a big wild card for
self-employed people, as you know.
And so I think it does make sense to really
make sure you have a good health care plan. I think that's one big impediment to people
being more entrepreneurial, that they're worried about how they will do for health care coverage. But oftentimes you do tend to see this trend
when people embark on self-employment, investing in their business comes first, and oftentimes
they do tend to short shrift their own retirement. So it's super important to keep that in mind. If you are self-employed, make sure that those
ongoing retirement plan contributions are part of your budget. Consuelo Mack: Christine, thinking about the
new three and a half percent withdrawal rate, there are some more flexible strategies that
you're suggesting. What are they? Christine Benz: Well, the name of the game
is that you want to be able to withdraw less if you happen to encounter a down market,
and that's particularly important in the early years of retirement.
There's this phenomenon that retirement researchers
call sequence of return risk or sequencing risk. And that basically means that you retire and
then encounter a lousy market environment right out of the box. That's the thing you worry about, and one
way that you can protect yourself against that is potentially taking less in those down
markets. So in our research, we tested a number of
different flexible strategies, and that's really a commonality among them. They help new retirees take a little bit more
initially than that 3.3 percent or 3.5 percent that we talked about, in exchange, though,
the trade-off is that as a retiree, you have to be prepared to take less.
So, one really simple tweak to, sort of, the
fixed real withdrawal system that underpins that four percent guideline or the 3.3 percent
guideline in our world is to simply forego inflation adjustments. So forgo inflation adjustments in the year
after your portfolio has endured a loss. We found that that is a really simple strategy
that actually does help enlarge retirees’ portfolios over their lifetime. There are a number of other, more complicated
strategies. Another one we looked at is called the guardrails
system. This was developed by financial planner Jonathan
Guyton and William Klinger, who's a computer scientist. It's a little bit more complicated. It ensures that the retiree takes less in
down markets, but in exchange, he or she can take more when the portfolio is up. So in environments like right now, you'd be
able to get a little bit of a raise because the market has been good. That strategy is more efficient. It means that the retiree consumes more of
his or her portfolio over the lifetime, but it also tends to leave less at the end.
So for people who are really bequest-minded,
such a strategy wouldn't be a great idea. Consuelo Mack: Talking about flexible strategies,
obviously we would take into account if we are eligible, our Social Security income stream,
which is inflation protected. But also, what about annuities, which in the
past have gotten a bad name, but that's another possible income stream possibility that we
should consider, right? Christine Benz: Absolutely. I think job one, even before you start thinking
about withdrawal rates, is to look at your non-portfolio income sources. Looking at Social Security, looking at an
annuity, possibly. And the reason is that we've got more and
more folks who are coming into retirement without the benefit of pensions. So the name of the game is to look at your
fixed cash flow needs, and then try to match them to non-portfolio income sources.
Annuities do have a bad name, and I think
rightfully so in some respects, largely because you've got some incredibly opaque, expensive
products, but there are also some really good annuities that do offer lifetime benefits. I tend to favor the very simple, plain vanilla
annuities that fixed immediate annuities or fixed deferred annuities where there's a lot
of transparency. For consumers, they tend to be lower cost
and you can easily comparison shop.
And I would also say, if you're thinking of
an annuity as part of your toolkit, don't go straight to the insurance company, go to
a fee-only financial planner. Get some objective guidance on whether that
makes sense for you, given your situation. But the important thing about annuities is
that, as an annuity purchaser, you benefit from what's called longevity risk pooling,
meaning that you are in the pool with other people. Some will die younger than expected, some
will live a lot longer. You hope you'll be one of the longer-lived
ones. And in so doing, you'll be able to enjoy a
larger sum of money out of that annuity than will people who die earlier.
Consuelo Mack: One of the criticisms of annuities
recently, even the fixed income annuities, is that interest rates are so low, so the
returns historically are low. Christine Benz: Well, that is a risk factor
that interest rates are very low, so, arguably, you're locking in a fairly low payout. So there are a couple of workarounds, one
would be to do a series of annuity purchases over a period of several years. But one other risk factor that I think does
loom large with annuities is inflation risk, which is certainly front and center for a
lot of people today, especially retirees. Most annuities do not offer an inflation adjustment
in that payout. So if we do see inflation run much higher
than it has historically, that would be a risk factor for new annuity buyers.
The main benefit of annuities is that longevity
risk pooling, and that does tend to elevate payouts from annuities quite substantially
above what you get with fixed rate investments. Consuelo Mack: Talk to us about of how we
protect ourselves and our portfolios against inflation. Christine Benz: Yeah. It's a huge topic today, obviously. I think it makes sense to kind of think of
this problem as two sides of a ledger. So I would start by looking at your expenditures,
and I often think about this column that Jason Zweig wrote probably a decade ago. He called it me-flation, and the idea is that
we don't experience inflation as CPI. We each have our own consumption basket, and
some people might have higher inflation because the stuff they're spending on is inflating
at a higher rate than CPI. Some people may have lower rates of inflation. So, really, take stock of how you're spending
If you're a homeowner, the nice thing about
that is that at least your housing costs are somewhat inflation protected. You may have sort of ancillary housing costs
if you're paying people to do things around your house or your home heating costs may
be going up, but at least your, sort of, main big ticket housing expense is locked down. Health care costs have historically been inflating
higher than the general inflation rate. The good news is that, right now at least,
health care costs do appear to be running below CPI, which is somewhat rare and it may
— Consuelo Mack: It is.
Christine Benz: — sort of reverse itself. So think about how you're spending your money
and then turn your attention to whether you are protected in terms of where you're getting
your income. So if you are someone who is earning a paycheck
and you're eligible for cost-of-living adjustments, well, those are, at least in part, making
you whole with respect to inflation, they're helping you keep up with CPI. In a worst-case scenario, say you are a retiree
and you're drawing exclusively from a portfolio of fixed rate investments for your withdrawals,
for your income, you're not at all inflation protected.
And you really need to think about, well,
how can I protect this plan? How can I protect my withdrawals from inflation? And that's where I think stocks serve a great
role. They're by no means any sort of direct inflation
hedge, but they, over time, do tend to have higher returns than inflation, which is one
reason why I think even older retirees would probably want to make room for stocks as a
component of their portfolio. Within the bond piece of your portfolio, if
you're retired, especially, I think it makes sense to consider Treasury Inflation Protected
Securities or i-bonds. And these are basically Treasury bonds that
give you a little bit of a nudge up in terms of your principal and in turn your income
when we see inflation running up. Consuelo Mack: Another suggestion, Christine,
that you've sent me on your to-do-list is the fact how essential it is to look at your
portfolio and consider rebalancing your portfolio.
U.S. stocks have done really well, U.S. growth
stocks have done really well and stocks in general have done well versus bonds. Is this a good time to rebalance? Christine Benz: I think it is. I'll keep banging this drum. I think I said that a year ago, too, and yet
we've seen kind of a similar performance pattern. U.S. stocks have performed very, very well,
but I do think that this is a nice way, without having to get too cute about timing the market,
this is a nice way to ensure that your portfolio's risk level stays in line with your targets. Annually, take a look at your asset allocation
relative to your target. If you're retired, I think the good news is
that we've had a strong stock market and your cash flow needs for the next couple of years
are probably hiding in plain sight in terms of your appreciated equity assets. Think about taking some money off the table
there, plowing it into safe investments that you can live on and that will give you peace
of mind, you'll leave a good share of your portfolio in stocks and it will give you peace
of mind to be patient with them if they do encounter some volatility.
Consuelo Mack: We're talking about rebalancing
and taking profits in a highly appreciated asset class and shifting them over to one
that hasn't appreciated as much, but that's going to involve taxes. Christine Benz: Right. Consuelo Mack: So talk to us about the tax
considerations. Christine Benz: It's crucial to be thoughtful
about this and to the extent that you have tax deferred or other tax advantaged assets,
it really does make sense to focus those activities in those accounts because you can trade all
day long. Not that you should, but you could trade a
lot and not incur any taxes, even if you're selling appreciated winners. So the good news is that, for many retirees,
the bulk of their assets do reside in tax sheltered vehicles where they can make those
They might owe taxes on the distributions
that they take, but the repositioning would not entail any taxes. If you're a younger investor, not yet retired,
focus those rebalancing activities within your tax-sheltered accounts. Also take care with respect to converting
IRA assets, traditional IRA assets, to Roth. You sometimes hear that that's a good strategy. Be careful about doing that when the market
is elevated, because the taxes that you'll owe on those conversions will depend on your
gains, the size of your balance and the amount that you're converting. So get some tax help. Whether you're doing this repositioning to
get your portfolio back into balance or whether you're doing IRA conversions, get another
set of eyes on what the tax implications might be.
Consuelo Mack: And another tax friendly strategy
is, of course, charitable donations, right? Christine Benz: So true. Consuelo Mack: Yeah. Christine Benz: The charitable contributions
of appreciated securities. You can do that at any age. You can actually get a donor advised fund
into the act where you can donate those appreciated securities, even employer stock to a donor
advised fund. And the beauty of that is that you can take
your time and be deliberate about making those charitable contributions. You can direct those contributions over time. Older adults who are required to take minimum
distributions from their IRAs can also use what's called a qualified charitable distribution,
where they donate a portion of their RMDs to charity. There's a little bit of a disconnect with
the ages, you can start the QCD, the qualified charitable distribution, at age 70 and a half.
RMDs kick in at age 72. So if you're 70 and a half, start looking
at this strategy, it's absolutely phenomenal and it is a way to lower your tax bill and
also lower the amount of balance that will be subject to required minimum distributions
down the line. Consuelo Mack: For those still working, you
check your retirement plan contributions. So talk to us about what's changed this year
from last year. Christine Benz: We're seeing a little bit
of an increase in 401K, 403B, 457 contribution limits. So going up to 20,500 in 2022 for people who
are under age 50. If you're over 50, you can take $27,000 in
terms of 401K contributions. So if you haven't revisited those contributions
that you're making, check to see if you're on track to make the maximum allowable contributions.
IRA contributions are staying the same for
2022, but take a look at whether you are on track to max out your IRA contributions. I love the idea of automating those just as
you do with 401K contributions, where you're signing on the dotted line with your IRA provider
to make ongoing contributions. The nice thing is, is that you can just invisibly
make those contributions. It doesn't give you time to equivocate about
whether it's a good time to make those contributions.
They just come right out of your checking
account. Consuelo Mack: We've had a 10 year — longer
than 10-year bull market now. For retirement planning, what are the risks? I mean, are there psychological risks to having
this prolonged bull market? Christine Benz: I think it's a good news,
bad news story. So we were talking earlier about that lower
withdrawal rate that is in order. The good news is it's a lower withdrawal rate
on a larger balance for many retirees. So it may translate into a higher dollar withdrawal
than would have been the case 5 years ago, because if you've been investing, if you've
been in the stock market, you've enjoyed that nice appreciation, but it is a lower percentage.
But I do think the psychological aspect of
this is huge, Consuelo, because a lot of retirees have been through many market downdrafts. And so their risk tolerance, their comfort
level with risk is higher than it will ever be during their lifetime, just as they're
embarking on retirement. The problem is their risk capacity, their
ability to absorb that risk, as they get into drawdown mode, as they get into drawing upon
their portfolios, that's actually diminished a little bit. So it's an odd disconnect, and I think it's
important to keep in mind the distinction between risk tolerance.
It may be high at retirement. Risk capacity is lower because you're going
to be starting to draw upon that portfolio, and you certainly don't want to be drawing
upon a 100 percent equity portfolio. You want to have safer assets that you could
draw upon if a bad market materializes especially early on in your retirement. Consuelo Mack: So the common wisdom is as
you get closer to retirement is to increase your defensive assets, and even though bonds
don't feel like they're defensive, that that's what we should be doing, and cash, certainly,
which has been really criticized and kind of diminished as far as Wall Street is concerned,
its value, but it can be quite valuable. So that type of strategy is still in place
as you get closer to retirement or in retirement is to increase your defensive assets.
Christine Benz: Very much so. The way I think about it is, given how low
yields are, it's not return on capital. You will not get much in terms — Consuelo Mack: Right. Christine Benz: — of a yield or a return
from these investments. In fact, current yields are really good predictor
of what you're able to earn from fixed income assets over the next decade. Well, that's a low return, but it is return
of principle that we know, especially during equity market downdrafts, we know that high
quality fixed income securities tend to hold up relatively well during those periods, and
that's really what you're looking for. You're looking for something that will hold
stable during that period when you're needing to spend from it. So I do think that the rule of thumb or the
thought about de-risking a portfolio as retirement draws close absolutely still holds up Consuelo Mack: One investment for a long term
diversified portfolio, Christine, what would you have us all on some of? Christine Benz: Well, we've been talking about
inflation protection and worries about inflation, and so I do think that people who are looking
at retirement and getting close to spending from their portfolios might consider an investment
in Treasury Inflation Protected Securities.
And one fund I like of this ilk is Vanguard
Short-Term Inflation Protected Securities. It is a very low-cost product. It's very conservative, so your return will
not be great over your holding period, but it will do a good job of defending against
inflation. And unlike some other Treasury Inflation Protected
Funds, it tends to not be very interest rate sensitive, so it invests in short-term Treasury
Inflation Protected Securities. So it tends not to be buffeted around by interest
rates. And that's a good thing, especially if you're
worried about inflation. We often see higher interest rates go hand
in hand with inflation. And so in such a product, in a short-term
TIPS Fund, you'll be relatively protected from some of the interest rate related volatility
that often accompanies longer term TIPS Funds. Consuelo Mack: All right, Christine Benz,
thanks so much for joining us — Christine Benz: Thank you, Consuelo. Consuelo Mack: — with your annual to do list. Christine Benz: It's my pleasure. Consuelo Mack: It’s always our pleasure
as well. Thanks, Christine. Christine Benz: Thank you so much. [Music] Consuelo Mack: At the close of every WEALTHTRACK,
we try to give you one suggestion to help you build and protect your wealth over the
This week's Action Point is think twice before
joining the Great Resignation Movement. As we just discussed, retirement tends to
be longer and more expensive than most of us realize. Early retirement can really put a dent in
your retirement income. Self-employment is very appealing, but it
does have some drawbacks. Lack of a regular paycheck, benefits and matching
401K contributions, plus all of the backup services we take for granted. Offices, supplies, tech support, etc. are
expensive. It pays to do some hard analysis with family,
friends and advisors before walking out the door. Next week, Social Security guru Mary Beth
Franklin updates us on managing that crucial retirement program and other strategies to
maximize retirement income. In this week's extra feature, what keeps Christine
Benz motivated as the incredibly busy multitasking head of personal finance at Morningstar.
For those of you active in social media, please
follow us on Facebook, Twitter and our YouTube channel. Thanks for sharing your precious time with
us. Have a super weekend and make the week ahead
a healthy, profitable and productive one. [Music].
these five ideas took me 20 years to find out as a financial advisor and also make sure to view them all since I don'' t recognize which ones are going to reverberate with you I can show to you number 5 is my personal favored but leave in the comments what your favorite is fine let'' s go with a stroll uh and the very first suggestion the initial suggestion uh that once again they didn'' t instruct us in college they didn'' t instruct us in secondary school and however life didn'' t educate me a lot of us these points we had to discover them on our own uh which is this is not our moms and dads retired life right we are healthier than our parents were uh travel is a fair bit more economical and easier today than it'' s ever been I ' ve been lucky in the last 3 or four years to be able to function from another location from 30 various nations and I can inform you my smart device had has actually made that experience so much simpler finding an area to stay obtaining from the bus or the trains terminal or the airport terminal to where I'' m remaining finding the the place that I desire to you recognize the cafe I wish to go to or the gallery or the basilica or you recognize whatever the visitor destination is it'' s a whole lot less complicated with the smartphone so uh this is not our parents retired life this is not uh resting around viewing tv and fishing I'' m not stating that every one of our moms and dads did that but the entire globe is open to us specifically publish covid ideal um is is travel is easier it'' s much less costly than ever before so product leading is this is not our moms and dads retired life if we considered our parents and claimed ah I'' m not exactly sure I ' m that excited about retirement I assume the sort of retired life we can have is is is is truly amazing and really interesting we have to do our homework to be prepared for it uh both financially along with mentally you recognize what does retirement resemble what are we passionate concerning what are we delighted concerning how are we going to invest the moment however if we do that research I think we have an actually fun-filled retired life to eagerly anticipate all right and second is is exactly what I simply shared which is you recognize we have to do our research and I I think we have regarding a hundred hours worth of reflective job that if we do that I believe we can uh really feel like we'' re well ready uh beyond the monetary facets for our return atmosphere and also then on top of that naturally the financial aspects are vital I would urge you to use a cost just monetary expert have a professional strategy prepared for you it doesn'' t have to be insane costly but you wear'' t intend to think that you ' re all right you'need to know that you ' re alright you ' re we economic advisors can not give you assurance however we can offer a lot of clarity simply Google cost only monetary expert near you I maintain claiming cost only monetary expert due to the fact that they have a fiduciary commitment to place your rate of interest ahead of their own 100 of the time as well as that'' s actually essential yet returning to second doing our homework it'' s not simply the finances of it you recognize it'' s what ' s your purpose going to be a great book to assist you consider your purpose is a publication called stamina stamina to strength by Arthur Brooks what are you going to do with your time you'' re mosting likely to have a whole lot of time in retired life and what are things that are really vital for you as well as simply check out the collection of videos that that I carry YouTube I'' ve I ' ve covered this topic uh several times and various other YouTubers have also so think concerning exactly how you'' re mosting likely to invest your time I can show to you high degree after doing a whole lot of reflective work as well as having actually guided other individuals via it right I indicate you simply can'' t aid yet also think concerning you know how does every one of this apply to my scenario the four areas that I'' m very fired up regarding during retired life is number one having time for connections I have a mom who'' s 87 years of ages lives a pair thousand miles away I was privileged adequate to be able to invest two weeks being a type of her key caretaker were my sis uh went on vacation finally it had been the pandemic because before the pandemic that she'' d been able to take a vacation so connections and also buying partnerships the time for that I'' m looking for or 2 as well as all for me every one of these are burglarized concerning a four so there'' s four of these the 2nd one uh is taking taking care of my wellness doing what I can to remain healthy because uh retired life is mosting likely to be a heck of a whole lot more fun if I'' m healthy so uh a 4th of my time on wellness and after that I'' m a long-lasting student I like learning so understanding is is continuing to discover proceeding to enroll uh proceeding to simply find out brand-new points I'' ve done numerous points I uh when I was much younger I was uh taking flying lessons and I'' ve actually obtained the score that you require to work for the airlines I instructed myself just how to code this YouTube thing so remaining to learn is essential to me and after that the fourth area is giving back as well as as well as for me that that suggests points like this YouTube channel right uh teaching as well as mentoring and mentoring and sharing the expertise that I have uh with people that I believe it can aid so those are the four areas for me that'' s what ' s right for me it'doesn ' t'mean that it ' s right for you um let ' s see and after that the the last one regarding preparing your research is you understand if you reside in the USA we need to think of what are we mosting likely to do for healthcare insurance up until we'' re 65 as well as you understand there are people that can aid you keeping that the only financial advisors can assist you with that said there'' s Professionals that focus on this area however there are remedies to that so however do your research before you make the leap you wish to see to it you'' ve got that base covered all right number three uh the number 3 concept um here that no one educated you regarding retirement uh as well as I suggested to it in the last thing which is wellness is more crucial than riches you understand actually actually do what you can we you know we can'' t prevent cancer cells we you understand we can do what we can we can eat right we can exercise we can do all of those things uh and as well as hopefully that will certainly aid maintain you healthy and balanced longer as well as with any luck fend off any of these terrifying illness that none of us desire alright so simply do what you can to remain healthy number number four is um you you don'' t need to fully retire right if you have a lot of stress at job um if if you'' re prepared for a change of pace if you'' re close financially and also you wish to make the jump you understand there there are part-time work out there there are side hustles out there that you can do side businesses that you can start uh so if you'' re close to retirement if you ' re like boy I ' d really like to retire earlier as opposed to later it doesn ' t have to be uh All or Absolutely nothing there'' s other means to make earnings and also the concern is you understand is is 50 totally free far better than no percent free on being retired you understand could you take a seasonal work as well as perhaps just work 3 months out of the year I stated in various other videos when my youngsters were more youthful I made use of to instruct a handful of weekends winter sports uh at a regional ski hotel so my whole family would obtain free ski tickets but there are these seasonal jobs and also is it much better to be 50 complimentary 80 percent free as well as work seasonally or function part-time work 20 hours a week so as to get health treatment advantages points like that so as well as there'' s no right or wrong solution it'' s just you know depends on um uh what'' s right for you fine number 5 as well as I'' ve obtained a Reward one below so put on'' t wear ' t uh disappear after number 5 uh before we obtain to number five if'you ' re enjoying this video please offer me a like uh the thumbs up it does assist the YouTube algorithm discover other individuals that ideally my channel can assist number 5 um is it'' s okay to have a back-up strategy you recognize pertaining to um number four you know maybe you think you have sufficient cash to retire or you intend to save uh a buffer and you'' re gon na work an additional two or 3 years to get this buffer uh and also you recognize what having a little money having this pillow makes a lot of feeling but you obtained to take care due to the fact that one year can conveniently develop into three or 4 years um so possibly you'' re in rather of having that buffer you have a backup plan where you'' re gon na have a part-time work you'' re mosting likely to have a you ' re mosting likely to develop a side rush if you need to in order to give yourself that barrier if if you hop on the unfortunate side of series of return risk which is when the market is adverse for very first couple years of of retirement or in the very first couple of years of retired life because that'' s when your sum of cash is the greatest uh it'' s when you ' re most prone to unfavorable returns and also as well as none people understand if if we'' re going to get hit with that or otherwise however perhaps the barrier possibly the insurance coverage if you will certainly versus that is a readiness to function part-time or to produce a side hustle business if you do get struck by that all right and afterwards the last thing I intend to leave you with and also it'' s it ' s a stating in my industry um you for lots of people they put on'' t require more money they just require a plan they need a tactical plan what are the important things that are vital to you what are those things mosting likely to cost and afterwards just how do you accomplish those and also you know I truly motivate you to connect to a cost only monetary advisor as well as state Below'' s my scenario can you aid me assume via am I am I shut to being able to retire are there things that I'' m not considering that might enable me to retire sooner as opposed to later on and to find a cost only monetary advisor just Google one I maintain saying charge only economic advisor because they have a fiduciary obligation to you as well as that'' s essential so I hope this video clip has actually been useful if you'' ve appreciated this one I understand you'' re going to enjoy this video clip up right here that speak about the ordinary earnings for senior citizens in America and also this video down below that talks regarding five factors to retire as quickly as you can many thanks for seeing bye byeRead More
are you bothered with exactly how you'' re mosting likely to pay for retirement you ' re not the only one lots of people are concerned about their retirement financial savings specifically with the volatility in the stock exchange in recent times in this video I'' m going to show you 4 pointers that can help you to invest for retirement these tips are based on my 30 years experience as a financial advisor and I function with hundreds of customers tip top make the most of your employer'' s retirement match several employers provide a retirement with a coordinating payment for instance if your company offers a 50 pair up to 6 percent of your salary as well as you gain fifty thousand dollars per year you must contribute at the very least three thousand dollars to your retirement your company will certainly then match your contribution with fifteen hundred bucks for a total amount of forty 5 hundred bucks in your pension not benefiting from your company'' s matches leaving cash on the table so make sure you contribute a minimum of adequate to your retirement plan to maximize your employer'' s match idea two purchase a diversified portfolio this implies investing in a selection of Investments like supplies and also bonds this should aid you to lower your threat and enhance your opportunities of reaching your retired life goals tip 3 rebalance your profile periodically to make certain that it remains in line with your risk profile if you'' re a person that suches as to handle your profile yourself even more power to you as well as sign up for our network to maintain learning if you'' re the sort of individual who likes assistance selecting and also managing your profile well that'' s the service we provide to our clients I'' ll leave a link in the summary you can click if you'' d like to establish a time to talk to us now on to our following pointer idea 4 Don'' t Panic sell the stock market will certainly fluctuate yet it'' s important to remain tranquil as well as not offer your Investments when the markets take a slump panic marketing can cost you a great deal of cash in the future if you'' re concerned regarding the marketplaces being down when you retire enjoy this video following [Songs]Read More
A few days ago, I was catching up with an old.
good friend and I recognized we'' d been close friends for 27 years. I never ever thought I would have a.
friendship that long, yet that'' s just how life functions. The older you obtain the faster time appears.
to fly by. And when retired life is impending, well, boy, does it begin to quicken! So, if.
you haven'' t started saving for retirement, wear'' t panic. It is feasible to start conserving.
when you'' re 45, 50, also 60, and still be able to retire, however you need to treat it like.
the house is burning down.So pay attention. I ' m Britt Baker,'founder of Dow Janes, as well as today I'' m giving you seven steps.
to capture up on conserving for retirement. Step is to obtain genuine concerning your.
existing circumstance. Just how much have you conserved for retired life thus far? How much will certainly you.
obtain from Social Protection? Connect those numbers right into a retired life calculator to see just how much a lot more.
you need to conserve each month to be able to retire. The next step is to start conserving considerably..
If you'' re 50 and also you place ' t saved anything for retired life, as well as you wan na be able to retire,.
you need to begin conserving and spending 50% of your revenue monthly, which means that.
you'' re possibly gon na either need to reduce your cost of living or increase your income..
If neither of those alternatives are feasible, you require to get actual about your alternative,.
which we'' ll talk about later in this video.Okay.
Third action is to settle any type of high-interest.
rate financial debt that you have as well as construct an emergency fund. You wan na do these two points prior to you.
really begin conserving for retired life. The factor for this is that the high-interest rate financial obligation is.
costing you greater than you'' re gon na make by having your money invested or perhaps sitting– definitely.
resting– in an interest-bearing account, so if you try to begin saving for retired life.
prior to you pay off your financial obligation, it'' s a negative suggestion. So if you have any type of savings.
relaxing in an interest-bearing account, use it to pay off your high-interest rate financial debt.
IMMEDIATELY. You'' ll wan na construct up an emergency situation fund. However note, if you have a backup strategy,.
this emergency fund, doesn'' t have to be significant. You wan na begin conserving for retired life as quickly.
as feasible, so don'' t let this step hold you back if you have family members or your children who.
will certainly sustain you in case of an emergency.Four is max out your contributions. So, at this. factor, conserving for retirement should be your number one concern. So you wan na add as long as. you can to your retirement accounts. If you have an employer-sponsored pension, like.
a 401( k )or a 403( b) as well as your firm supplies matching contributions, you wan na ensure that.
you'' re contributing as a lot as your company will certainly match. This is cost-free money, so take full benefit.
Of it.If you put on'' t currently have an Individual retirement account, established one up as well as max out those contributions. As well as if.
you'' re independent open a solo 401( k) or SEP IRA and also max out those contributions also. If you''
re. getting the theme, the concept is maxing out your payments. All of these methods that I'' m talking.
concerning also allow you to lower your tax obligation rate, so it'' s particularly handy. The final means to do.
it is if you have a high-deductible health and wellness plan, you can open up an HSA as well as max that out as well..
Basically, you wan na save as much cash as you can in your various tax-advantaged accounts.And.
understand that if you'' re 50 or over, you'' re allowed to contribute a bit a lot more than the standard optimum..
So seek out the maximum quantity and add that. 5th action is to spend your savings..
So, also though you'' re beginning late, it ' s not also late to begin investing..
I hear this a lot– is it far too late for me? Is it far too late to begin.
investing? However it'' s never. One thing that'' s truly practical to bear in mind.
is that you wear'' t need to take every one of your retirement cash out when you turn 67, if that'' s. the age that you pick to retire. As quickly as you pick to retire, you just require to secure enough.
to survive on yearly, actually, also monthly, so that you still can let the remainder of the cash keep.
purchased your accounts to ensure that they will expand for as long as they can, which you recognize, can.
As soon as you ' ve done the workouts in action one to figure out the actual circumstance you ' re in,. The next point to consider
is will will certainly have to move relocate someplace a lower. This may be why some individuals select to retire
Even though you ' re obtaining a late start, it ' s. okay. There ' s definitely wish. You have time. Simply see to it you start saving, re-watch this. video clip, as well as keep in mind the actions that you ' re intended to do things in', and if you want some extra. support, feel free to join our participant neighborhood, The Million Buck Year.We assistance lots of women. as they are simply starting to conserve retired life in their forties as well as fifties,
so we ' ve. got you if you want the added help..
re. All of these means that I'' m talking.
It'' s definitely not. Once you ' ve done the workouts in step one to figure out the real scenario you ' re in,. Even though you ' re getting a late begin, it ' s.
Hello, this is Dr. Chris from Pensionfriend. What is Pensionfriend? Pensionfriend is a retirement solution,
so we find for you the best investment vehicle and the best investment options. Why did we start Pensionfriend? We had a lot of customers that
we helped to buy their homes ask us: "what's next?" "How much should I say for my pension?" "How does it work in Germany, we find it very complex" and indeed it's mind boggling complex. So what did we do? We more or less took the system apart.
We built models to understand every
element, taxation wise, investment wise. How does Pensionfriend work for you? First, you can use your system to
find out how much your public pension will be and how much you need. Secondly, we will advise you on
what is the best option for you, depending on, for example, your
employment state or your age. Usually it's a private pension plan. Thirdly, we found and offer you
the low-cost private pension plan. In Germany, you find many plans
that are highly costly with big hidden cost, not ours.
Fourth, you need to make
investment decisions. And we offer you three ETF portfolios
that have the highest chance for a good pension And these portfolios I build on my experience as the head
of the public advisory arm of the World Bank, where we advise clients
with over 2 trillion in assets. Why choose Pensionfriend? low cost, the best investment choices, the best investment vehicle? It is important to prepare for the future. Our life expectancy
these days is very high. Don't hesitate. Take action. Come and talk to us. You'll find a lot of
material on our website. Good luck with your planning. This is Dr. Chris from Pensionfriend..