Style Switcher

Predefined Colors

Pay This Off Before You Retire – Retirement Planning Tips

in this video we'll look at what expenses you should think about getting rid of before retiring and a few mistakes that retirees make when it comes to expenses in retirement there's a few things that you may want to say goodbye to before you say goodbye to that wage or that work income we're going to cover this in three parts it's going to look like this first we'll go over needs and wants and then what i'd call highway robbery and then also what to ear mark in retirement we've seen that the retirees that can get rid of these expenses before retiring have a little bit more breathing room and they feel better about their retirement plan because when you're planning for retirement we usually think about really two types of expenses it's the needs which are the essentials the absolute must-haves to just live you know as you think about my maslow's hierarchy of needs those things at the base layer and then there's the wants which are the the nice to have things but then there are other types of expenses that really don't fit into that category of needs or wants those are the things that we need to be done with before retirement and by the way i'm dave zoller and me and my team we run streamline financial it's a wealth management firm focused on retirement planning and we've been helping people personally for 13 years and streamlines been around for 22 years and we created this channel to share what's working with our clients so that you can benefit too so if you're close to retirement be sure to subscribe because i share one new video each week to make your retirement a little bit better i also put some free resources in the description below like my favorite diy retirement planner if you're more of a do-it-yourselfer so let's get into the list and then as you're watching if i leave something out please share it in the comments below i'd love to hear from you and then also i'll try to reply back to depending on how many comments i get so the first two you will probably agree with but you might not be thinking about the other ones and i want to show you ways to prepare and just make sure that your retirement is a little bit smoother by using our retirement planning software the first one which you already know is to pay off high interest debt which i sometimes think of as highway robbery it's when those interest rates are just so high and they're charging people it just seems unfair right that high interest debt i'm referring to is usually credit card debt and sometimes it's student loan debt and you'd be surprised at the number of people who in their first year of retirement they still have a large monthly payment towards credit card payments or student loan debt and this should be the number one thing that we should focus on to really reduce before we say goodbye to that job income or that wage because if you retire with credit card debt and then you get serious about paying it off in retirement then that means you've got this bigger amount that you got to take from investments which could alter your retirement plans i helped a woman recently who's not a client but she was looking at her plan and she wanted some help and she had about 20k of credit card debt she also had over a million dollars and her regular expenses adding on this 20k of a lump sum expense to her plan it really made quite an impact and once we looked at that together it gave her the motivation to work a little bit extra and extra hard to get this debt payment down to zero or get the credit card debt down to zero before retiring because she'd have a greater peace of mind and it would just increase her confidence as she was going into retirement that peace of mind it's key right i'm sure you're feeling the same way i actually want to share a little bit more about how to achieve this before you retire and during retirement and i share that at the end of this video so stay tuned the next ones are expenses that you can either pay early or at least you want to earmark these in your retirement plan and i'll show you what i mean when i say earmark that just means setting aside funds for specific purposes and either not including those funds in your retirement plan or including them but at least showing the specifics within the plan and i'll show you some images coming up of a retirement plan and how to do this number one thing to earmark is any big travel expenses that you're looking forward to that first year of retirement or really the first few years of retirement a lot of people kick off retirement and they'll really have a big special trip that they've always wanted to take or a place that they've always wanted to go to and lots of times that vacation it's going to cost more than the typical vacation that you might take on a regular year it's really that cap to uh ending work and then really doing a bigger than normal trip some clients choose to take one of those european uh river cruises that are pretty popular and they can cost 10 to 20k or more and knowing that this is a bigger than normal expense or a lump sum expense coming soon into retirement you can either pay that ahead of time like actually many of the cruise places make you do or you can at least earmark it in the plan and make sure that it all works with everything and i'll throw it in there as an example coming up soon here's an example of a retirement plan that's based on annual expenses going up each year three percent regular inflation rate and then over on the left side we can add some expenses that are bigger and irregular you know not the regular every year expenses but things we can earmark so that we can see the impact of on the plan before actually spending the money and doing it this way we can add some peace of mind to your retirement plan and your confidence as you're spending money and so you can just feel that it's a good decision and feel good about that vacation or whatever it might be a few other bigger than normal one-time expenses we've seen are related to your adult kids if you have them whether it's final college expenses or maybe a wedding that you want to help out with or future gifts maybe towards a home purchase or something like that for those you're not really able to pay those before you retire because we don't know when they're going to happen so earmarking them is the next best step and setting funds aside to make sure that these potential expenses that you might have in the future are ready and available ready to deploy when needed one mistake that we've seen some retirees make getting close to retirement is not factoring in these one-time expenses and then getting caught a little off guard when it's time to pay for them especially if we're in a market like we are now now you might be thinking one big expense that i did not mention and before i share that one if you enjoyed watching this video so far and you found it helpful please click the like button so this can hopefully spread to other people who are like you and might find it helpful as well so that one big expense that you might be thinking of that i didn't mention yet is paying off your whole mortgage before you retire and this is a big one for many people as you've heard before behind every financial decision there's also an emotional one as well and many people they feel very strongly or maybe adamant on on being debt-free in retirement and that's a really good feeling for for many people for others depending on their financial decision it actually a mortgage could actually make sense in retirement some people see it as a fixed expense which doesn't go up with inflation it actually gets cheaper as everything else increases with inflation and as one dollar can buy less and less over time which is basically what what inflation is it may be at really attractive interest rates as well and some people want to have a little bit more flexibility in their retirement accounts by keeping some funds available in their non-retirement accounts versus using that money to pay off the mortgage the more important thing to to think about when deciding whether this makes sense whether to pay it off or not is try to measure first just the emotional feeling or comfort with debt you know yourself and then also your spouse if you're married and then step two is map out both scenarios what does it look like that plan that we're just looking at over here what does it look like if you pay off debt early or don't pay off the mortgage at all look at the difference see which one's okay lots of times it comes down to the strength of the emotional feeling around debt for one person in the relationship or if it's just you then it's just whatever you prefer when we're thinking about paying off expenses or earmarking things in retirement get help from a financial professional a cfp could be a great place to start but i'd like to hear from you what did i not mention as we're thinking about these different expenses in retirement i'd love to hear your thoughts about these expenses and especially the thoughts on mortgage having a mortgage in retirement and i want to share another video about how increasing peace of mind and making sure that you get both parts needed for a successful retirement the sad thing is that in this industry the financial industry most of the time they focus on one thing but here's a video to watch that'll help you think about and prepare for both sides of retirement so hopefully i'll see you there and if you haven't already subscribe and then i'll see you in future videos take care you

As found on YouTube

Retirement Planning Home

Read More

3 Ways to Invest Your Retirement Money | CA Rachana Ranade

Well today, I am going to tell you a story, 
a story of an ant and a grasshopper. When it   was a nice sunny day, the grasshopper was 
merrily singing certain nice tunes and he   was enjoying the weather while, on the other 
side the ants were very busy gathering food   so that they don't have to face a problem 
on a rainy day. Then what happened that,   the rain started and when the rains were 
pouring heavily, the ants were enjoying the food   in their own small home. Poor grasshopper, what 
might have happened to him? You want to see that,   the grasshopper is also merrily enjoying food,   because he's not the grasshopper of that original 
story, he's the next gen grasshopper, he knows   how to plan for his future, maybe he's seen my 
lectures and that's why he's a smart grasshopper.   Hey folks, CA Rachana Ranade here and I welcome 
you all to a brand new video which is about   how to park your retirement corpus.

I am sure 
that grasshopper hasn't still left your mind,   you might be wondering how did he get that 
food, so it's all about proper planning,   proper goal setting and if you're still 
not aware about how to set smart goals,   just have a look at this lecture whenever time 
permits and I am sure that that grasshopper   might be very very keen on learning, he might 
have set his retirement goal very nicely,   that's why he was able to enjoy the summer 
as well as the post retirement phase. Well now, it's time to press the reset button, 
why? Because you were in the accumulation phase   of your life till now but, right now we're 
assuming that you have already reached that   retirement phase and now, you're going to go into 
the decumulation phase. You might be wondering,   what is this? So this video, to be very honest, is 
not targeted for people who are in 20s or in their   30s, this is more targeted towards people who 
are at their retirement age of let's say 60 years   or even if you are 30 years, maybe, you can 
definitely watch this video for your parents   right, because they are going to be the ones who 
might receive a lump sum amount at retirement   and then they might get confused as to how can I 
park these funds so that I can decumulate them, so   that I can utilize them, withdraw them very nicely 
and lead a very comfortable life post retirement.   So just to give you one more quick clarification, 
accumulation phase happens when you are working,   whenever you are keeping that small part of 
your income so that you can easily retire early,   retire rich and now once you have 
reached this retirement phase,   now it's all about withdrawing your 
investments and leading a peaceful life.

Many times people ask me on WhatsApp or through 
emails that Rachana, we have received an x amount   as a lump sum retirement amount, now where 
should we invest this. If you really ask me,   there's no single answer for that, I will give you 
an example for this as well. Assume that there are   three friends a, b and c. Almost 25, 30 years ago, 
all had decided that when we retire, we should   have a retirement corpus of one crore rupees and 
today all of these three people have retired.   Budgeted amount was how much, target amount 
was one crore but, let's understand actually   what have they achieved, Mr. A saved only 30 
lakh rupees so I can say today his investment   corpus is just 30 lakh rupees, for b it is 90 lakh 
rupees, 90 lakhs is very close to the target and c   has managed to invest two crore rupees for his 
retirement. Now you only tell me one thing,   can I give them one single strategy or 
the strategies have to be different?   Answer is, the strategies have to 
be different but what will be the   strategies is exactly what we are going 
to discuss in the next part of the video.   So now let's understand all these three cases one 
by one.

The very first one, if you remember is of   Mr. A, whose target saving for retirement was 
one crore but he actually ended up only with 30   lakh rupees. Now what do you think, out of these 
three strategies, what should be his focus on,   should it be on income generation, on corpus 
protection or on corpus growth? Ideally, it should   be mainly on income generation and of course 
on corpus protection. He can't take the risk to   grow his corpus by putting his corpus in risky 
instruments like equity post retirement right.   So what are few solutions for Mr.

A, solution 
number one, unfortunately he will still have to   make a point to earn additional income, now how, 
if he is a skilled person, he might still give   some certain consultancy services and earn money 
Possibility number two if that's not, I mean if   that's not doable, maybe if he's staying in his 
own house, he can sub rent a part of his house,   so let's say he can have a paying guest to whom 
he can just give like one bedroom of his house,   something like an Airbnb model, can be operated 
by him as well right.

One more possibility is   that if he is able to cut down luxury to 
almost zero percent levels, then he will be   able to survive through his retirement and one 
last point which he will have to do is that,   even if he's spending on essentials, he will have 
to spend on the essentials very very tightly. So   I hope all the young viewers out there, they 
might have understood that come what may,   I don't want to be Mr.A post retirement. Now let's 
go to the case of Mr. B, his targeted saving for   retirement were one crore rupees and how much did 
he end up saving, he ended up saving 90 lakhs,   almost hitting the target right. What should be 
his focus on? His focus should be on number one   corpus protection, because he's almost there. 
Now, he doesn't want to lose the corpus but,   simultaneously he also wants to generate certain 
income. So for that what will he have to do,   number one, he should ensure as I mentioned that 
his capital is not eroded, so, for that can he   invest in equity, direct equity? No. He has to 
ensure that capital is not eroded number one.   Number two, can he still afford a slight amount 
of luxury, why not slight amount of luxury is   affordable because he's very close to his target 
and number three, what he can do is that he can   invest a part of his funds in something like 
a conservative fund wherein, 75 to 80 percent   exposure is given to debt and a very minor 
portion is it is actually allocated to equity,   so I can say that corpus growth can be a very 
very slight point which may be considered but,   again I am repeating, major focus on what, major 
focus on corpus protection and income generation.   Let's move on to case number c.

For case number 
c, he's at the most amazing position because his   target saving was one crore he has ended up saving 
to crore. Does he have to really bother about   something right now, no. Can he actually live 
his retirement life in luxury, absolutely yes.   Can he invest in equity as well, this person, 
yes, why not, because for him capital protection   is not very a big running crisis, he also has 
surplus corpus. So he can risk out some of his   money in equity. Now whether in direct equity or 
in equity mutual funds depends on his knowledge   right. So after understanding all these 
points, I hope you have understood that Mr.

C   has two further possibilities, possibility number 
one if he lives to the age where he had predicted,   let's say he had predicted that he lived 
to 70 and if he lives only till that age,   he will be able to keep some corpus even 
for his nominees, for his legal heirs.   If he outlives his expectation so for example he 
had planned that he will die at 70 as an example   and he lives till 80, still will he have 
the corpus to live that additional 10 years,   yes, because he has that additional quotient.

So 
all those youngsters out here watching the video,   I hope you understood that you surely love if you 
are Mr. C while you are at your retirement age.   Well before we move ahead to understanding the 
various investment options available, we have   to understand two prerequisites, which are these 
two, number one, even if you are in the retirement   phase, very very very important is the emergency 
fund. Now what is emergency fund, it's something   like you should have almost three to six months 
of your expenses very easily available with,   you it could be in your savings account, it could 
be in your FD, okay it could be in liquid fund but   it should be very much easily accessible. If 
you want to know more about emergency funds,   I have already made a video on that you can check 
it out later. Number two, very very important,   you should have a health insurance because as and 
how you grow more in age, chances that you might   face illness, you might face hospitalization 
or a shade higher so, you must have a proper   health insurance.

If you want to know more about 
health insurance again I have made a separate   video on that, I have recently released this on 
the channel. So be sure that you have knowledge   about both these two points and then only move on 
to understanding the various investment options. Emergency funds ticked off, health insurance 
ticked off, I am not saying tic toc, ticked   off okay.

Now with this let's move on to the 
government schemes and we are going to focus on   three schemes. The very first one is SCSS, senior 
citizen saving scheme. The second one is PMVVY   which is the Pradhan Mantri Yaya Vandana Yojana 
and the last one is POMIS which is post office   monthly income scheme. Well to be very honest, the 
first two are absolutely retirement focus schemes,   the third one can be opened even by people who 
have not attained the age of 60. So for example,   if I want to open a POMIS, I can, I can also open 
it in the name of a minor as well okay, but, then   why are we discussing it here, because it offers 
a benefit of a monthly income scheme, that's the   reason why I am discussing it in this section 
right. So let's understand all these three one   by one. Where can you open an account under SCSS, 
it can be opened up with any authorized bank or a   post office, for PMVVY it is solely operated by 
LIC. So if you want to open an account, you have   to approach an LIC agent or you can go directly 
to the LIC office.

For a monthly income scheme,   you have to open it with a post office I mean, you 
have to go to a post office and open an account.   Eligibility for SCSS, ideal eligibility is 60 
years but with certain uh conditions so for   example, if you have taken a early VRS, a special 
VRS, then age limit is taken down to 55. If you   are a defense personnel, the age limit is taken 
further down to 50 right, for PMVVY, it's a flat   age of 60 years and for POMIS as I mentioned, 
there is no age limit even a person of 20 years,   30 years, 40 years, 60 years also can open 
this account right. The next one is about term   tenure, for SCSS it is five years and it can be 
extended to further three years for VVY, it is   ten years and for POMIS, it is five years. How 
much are the interest rates? For the first two,   interest rates are seven point four percent 
for the quarter one of 21, 22.

So what does   this mean? Can the government change these 
interest rates periodically, unfortunately,   answer is yes. Can they do a downward revision, 
yes, can also they do an upward revision, yes   okay, but, recent past may they have been in 
a downward trend okay but, still I can say   that seven point four percent right now is not 
bad at all, okay. When you get paid out is the   big question now, if you're talking about SCSS, 
you get paid out quarterly, for VVY, you get, you   have an option you can choose monthly, quarterly, 
half yearly, yearly whatever and for POMIS,   as it's a monthly income scheme, it will be paid 
out on a monthly basis.

Minimum deposit, maximum   deposit is very well mentioned in this table you 
can see here, minimum is 1000 and its multiples   maximum is 15 lakhs. For VVY, 1.5 lakhs for a 
yearly pension and 15 lakhs for a monthly pension,   for post office MIS, it's thousand and it's and 
it's multiples and for maximum amounts it is 4.5   lakhs if it's a single account and 9 lakh if it's 
a joint account. There are certain clauses about   withdrawal and penalty as well, if you want you 
can just press the pause button, read out the   penalty and withdrawal clauses and then again play 
okay. So it's nothing like to be taught as such.   For taxation, for SCSS, PMVVY both are eligible 
under ATC, for POMIS it's not eligible under ATC.   If you check out, for all these three schemes, the 
aim is common and what is the aim, aim is income   generation and corpus protection.

Is there 100% 
corpus protection, yes, because all three schemes   are somewhere related directly to post office or 
to the government, so it's as good as saying that   government defaulted ,very rare scenario right. So 
in this case, I can say that corpus protection is   absolutely guaranteed, so go back again to case a, 
b and c. To whom is this absolutely suitable for,   it is absolutely suitable for the case a 
category.

Can case b, can Mr. B also invest   some part in this, absolutely yes, why not. A 
little less as compared to A and for c this,   can be a comparatively lower amount which 
can be invested in these three schemes. So I hope you have understood very well about 
the government schemes. Now let's move on to   investing in mutual funds. Ff you remember, I 
told you that depending on the risk appetite,   one can choose whether he should go for a debt 
fund or to a balanced fund, in that also we talked   about a conservative fund, you remember when I 
said 75 to 80 percent exposure will go to debt   ,only that balance small small portion to equity 
and the third one can be actually investing in   equity oriented funds but, that was for whom a? 
b? for c, because he had a lot of surplus corpus   as well right.

So let's understand one by one if 
I am talking again about Mr. A. is this option   available for him, none, neither debt, nor equity. 
Ideally, you should go ahead with a very safe   government scheme point only right. If I am 
talking about b, can b invest a part of his   corpus in debt funds, answer is yes, why not, he 
can do that. Now if he is interested in income   generation, what he can do is invest in debt 
fund and then go ahead with an SWP, what is SWP,   systematic withdrawal plan.

So like in SIP you 
transfer x amount monthly to that investment   that is mutual fund right, instead of investing 
monthly, here you withdraw monthly that is known   as a systematic withdrawal plan okay. So what is 
step number one, invest one chunk in debt fund   at one shot and keep on withdrawing part by part 
every month, that will give you a steady flow of   income per month right.

Possibility number two, 
if you want to go ahead with investing in equity,   now invest in equity was for whom ,ideally for 
Mr. C so now, let's understand how c will plan   his investment in equity mutual funds. Is he 
going to directly invest in equity mutual fund,   no understand how he would do it. So assume 
whatever chunk he has decided, first the entire   chunk will go in a debt mutual fund right and from 
the debt mutual fund, money will be systematically   transferred to the equity oriented mutual fund. 
So this is not called as an SWP, it is called   as an STP that is nothing but a systematic 
transfer plan.

So what will happen in this,   it is as good as an SIP only, but SIP is when? 
When you pay out of your own pocket every month,   in STP what happens, money has already gone out 
from your pocket you know it's there in the debt   fund, it's parked in the debt fund. Now money 
is only being transferred from a debt fund to   an equity fund. I hope you have understood what is 
a debt fund, who should invest in a debt fund. If   you remember we also talked about a conservative 
fund, a hybrid fund, we did talk about investing   in equity oriented mutual fund that was mainly for 
Mr. C, we also talked about SIP, SWP, STP wow, but   wait, still one big question remains how to choose 
which mutual fund, for that, I have a separate   course on magic of mutual funds so you can surely 
think about investing in this course, you'll get a   lot of knowledge about how to choose a mutual fund 
and so that you can invest with full confidence.

Let's move on with our last investment 
avenue, which is investing in equity,   my favorite one right. But then, is it 
applicable for Mr. A, no, b, no, for c,   yes. But then, how? Can you invest directly in 
equity ,that depends on whether that person has   that much knowledge on equity or not. If he does 
not have knowledge, he can acquire that as well.   I will definitely like to share a very nice 
experience which I had. So whoever enrolls for   my courses on various like basics of stock market, 
fundamental analysis, technical analysis whatever,   I do conduct a zoom meeting sessions every 
month with all these participants. There is   one participant named Shashi and she is I guess 
60 plus years. She has been a scientist, has zero   commerce background but then, post retirement she 
said, I would love to learn about stock markets.   She has learned a lot about stock market, she 
keeps on asking me questions every month and I   am so happy to answer her questions. That's how it 
shows that there is no age barrier for learning,   so if you still believe that you have that 
enthusiasm for learning, age is just a number,   right.

So, what you can do if you have that 
knowledge in stock market ,you can invest,   if you don't have, acquire the knowledge first and 
then invest in stock market but again coming back   to our case study, this one is not applicable for 
a, b it's applicable only for c. Next option can   be investing in Nifty bees. So if you don't know 
what are bees, what are Nifty bees, I have already   made a separate video on that. I have talked 
about various types of bees like gold bees,   Nifty bees, bank bees, in that video you will 
get a detailed input on what are nifty bees. You might stop working, but, your 
money might not stop working,   If, you have parked it efficiently.

I hope 
you have enjoyed this video. If you have,   don't forget to share it with your friends 
till then take care, Jai Hind and bye bye..

As found on YouTube

Retirement Planning Home

Read More

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

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

As found on YouTube

Retirement Planning Home

Read More

Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

I want to share an investment system for retirees to hopefully assist you as you're thinking about and planning for your retirement we're also going to look at how to prepare your retirement for the multiple potential potential economic Seasons that we may be headed into so we want to look at the multiple seasons and then the Easy System that's going to help lower taxes and then lower risk as well now if I haven't met you yet I'm Dave zoller and we help people plan for and Implement these retirement strategies really for a select number of people at streamline Financial that's our retirement planning firm but because we can't help everyone we want to share this with you as well so if you like retirement specific videos about one per week be sure to subscribe so in order to create a proper investment plan in system we want to make sure that we build out the retirement income plan first because without the income plan it's much harder to design the right investment strategy it's kind of like without the income plan it's like you're guessing at well 60 40 portfolio sounds good or you know May maybe this amount in the conservative bucket sounds reasonable you already know and and you feel that as you get close to retirement that goal of just more money isn't the the end-all goal that we should really be aiming for for retirement it's more about sustainability and certainty and then really the certainty of income and possibly less risk than before the last 30 years uh the things that you did to be successful with the financial side are going to look different than the next 20 or 30 years now if you need help defining the the income plan a little bit then look at the DIY retirement course below this video now once you do Define your goals for retirement and then the income needed to achieve those goals then creating the investment system becomes a lot easier and within the investment plan we really know that we can only control three things in all three things we actually want to minimize through this investment system the first thing we can minimize or reduce is how much tax you pay when investing we had a a client who was not a client of streamline Financial but of a tax firm coming to the the CPA firm in March to pick up his tax return and he was completely surprised that he had sixty thousand dollars of extra income on his tax return that he had to pay tax on right away before April 15th and it was due to the capital gains being recognized and other distributions within his investment account and he said but I didn't sell anything and the account didn't even go up that much last year and I got to pay tax on it but he was already in the highest tax bracket paying about close to 37 percent on short-term capital gains and dividends and interest so that was an unpleasant surprise and we see it happen more often than it should but this can really be avoided and here's two ways we can control tax so that we don't have to have that happen and really just control tax and pay less of it is the goal and I'll keep this at a high level but it'll get the the point across number one is the kinds of Investments that you own some are maybe funds or ETFs or individual uh equities or things like that the funds and ETFs they could pass on capital gains and and distributions to you each year without you even doing anything without you selling or or buying but it happens within the fund a lot of times now we would use funds and ETFs that are considered tax efficient so that our clients they can decide when to recognize gains rather than letting the fund company decide now the second way is by using a strategy that's called tlh each year there's many many fluctuations or big fluctuations that happen in an investment account and the strategy that we call tlh that allows our clients that's tax loss harvesting it allows them to sell an investment that may be down for part of the year and then move it into a very similar investment right away so that the investment strategy stays the same and they can actually take a write-off on that loss on their taxes that year now there's some rules around this again we're going high level but it offsets uh you know for that one client who are not a client but who had the big sixty thousand dollars of income he could have been offsetting those capital gains by doing tlh or tax loss harvesting that strategy has really saved hundreds and thousands of of dollars for clients over a period of years so on to the next thing that we can control in our investment plan and that's cost this one's easier but many advisors they don't do it because it ends up paying them less now since we're certified financial planner professionals we do follow the fiduciary standard and we're obligated to do what's best for our clients so tell me this if you had two Investments and they had the exact same strategy the same Returns the same risk and the same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times more at point six percent well I know that answer is obvious and we'd go with a lower cost funds if it was all the same low-cost funds and ETFs that's how we can really help reduce the cost or that's how you can help reduce the cost in your investment plan because every basis point or part of a percentage that's saved in cost it's added to your return each year and this adds up to a lot over time now the last thing that we want to minimize and control is risk and we already talked about the flaws of investing solely based on on risk tolerance and when it comes to risk a lot of people think that term risk tolerance you know how much risk can we on a scale of one to ten where are we on the the risk factor but there's another way to look at risk in your investment strategy and like King Solomon we believe that there's a season for everything or like the if it was the bird song There's a season for everything and we also believe that there's four different seasons in investing and depending on what season we're in some Investments perform better than others and the Four Seasons are pull it up right now it's higher than expected inflation which we might be feeling but there's also a season that can be lower than expected or deflation and then there's higher than expected economic growth or lower than expected economic growth and the goal is reduce the risk in investing by making sure that we're prepared for each and every one of those potential Seasons because there are individual asset classes that tend to do well during each one of those seasons and we don't know nobody knows what's really going to happen you know people would would speculate and say oh it's going to be this or this or whatever might happen but we don't know for sure that's why we want to make sure we just have the asset classes in the right spots so that the income plan doesn't get impacted so the investment system combined with the income system clients don't have to worry about the movements in the market because they know they've got enough to weather any potential season I hope this has been helpful for you so far as you're thinking about your retirement if it was please subscribe or like this video so that hopefully other people can be helped as well and then I'll see you in the next one take care thank you

As found on YouTube

Retirement Planning Home

Read More

What Retirement Income Puts You In The Top 1%

what income does it take to be in the top 1% of all retirees you'd think that'd be a relatively simple project to research turns out it wasn't so stick around and benefit from the work that I did to uncover these hardto find numbers let's go for a walk and and talk about it and you know the first thing I want to observe is that most of us probably would not recognize could not tell by the lifestyle folks that are in the top 10% of all Rey income when I get to the numbers I I think you'll you'll say okay I think I would be able to recognize people that are in the top 1% I'll give you a hint it's a it's a much bigger number than than I thought it was going to be okay and and so why is that you know why wouldn't we recognize uh the folks that are in the top 10% and it's because like a lot of things in life you know if you look at Millionaires and millionaires Lifestyles you know 70% of millionaires in America or self-made and and most of them most of us uh got there um by being you know uh uh careful with our money and and and being good Savers as as much as uh being fortunate and and receiving a a good salary along the way okay so I'm going to start off with what these numbers look like for all Americans and this is from a large data set they say it's the largest population data set uh in the world and the organization is called ipums and this is for all Americans not just retire so um to be in the top well first let's start off with median and and this is household this is household income the median household income uh in the United States for for everybody all ages is is $70,000 to be in the top 25% you've got to make about $130,000 000 to be in the top 10% you're making a little over $200,000 the household income a little over 200,000 it's 212,000 and to be in the top 1% you're making over $500,000 a year now um and the number is 570,000 what was interesting is each of those groups from um 2021 to 2022 so this is a data set uh that they released the results of at the end of 2022 each of those groups got a raise between 2021 and 2022 unfortunately from the median and Below on an inflation adjusted basis folks that are at the median below uh are actually making less on an inflation adjusted basis folks that are above the median are making more in 20122 and we've heard this play out in the press okay so so those are the income levels now now let's talk about savings and there's a really interesting point I want to I want to share with you here okay to be in the um to be in the top 1% of Savers in the United States this is the top 1% if you're between 65 and 69 75 and 79 or over 80 it's to be in the top 1% you've got to have $2.7 million in what's called net worth the net worth is just take all of your assets all of your savings accounts the value if you own a house the value of your house and subtract from it the the the debt that you have on that essentially so you just take all of your assets and you subtract all your liabilities your car loan your your mortgage your credit card debt hopefully you don't have too many of the latter too uh and that's your net worth so um if you have a net worth of $2.7 million a household net worth uh in the United States you're in the top 1% what I want to point out is you know if you look at the income boy that income is really staggering right I mean the top 1% of income is 570,000 or higher and you know some people will say well you know that number seemed a little low I was expecting that top 1% of income to be higher and I I agree but that's like the last person that made it into the top 1% so there's plenty of people in that category that are making a lot more money but think about this you know the the lowest income in the top 1% is almost $600,000 right it's $570,000 yet to be the top 1% in savings you just need $2.7 million or more um and what that tells me is you know as a society as a country it's no surprise we're not saving enough money and so um it's not enough to make a great salary you've got to be able to to save it but to me that was just staggering that you know essentially that top 1% you know if they were the Savers they essentially have saved um what five years worth of income uh and most of us could not retire if we had just saved five years worth of income right so that just shows just the the importance of living below your means and and saving as much as you can okay let's keep going now I'm going to Break It Out by desile and again this is household and this is according to the Congressional research service so the the lower quintile so there's five groups the lower 1 the lower 20% of Americans are making under $22,000 a year then the next group up from that are making you know between that 22,000 and 40,000 the next group up to that is is making between 40,000 and 65,000 um so you can see that you know 80% of Americans households are making less than $65,000 a year now I haven't got to retirement that's coming up here really soon um let me get to the top quintile the top quintile households in America are a little over $110,000 let's call it $111,000 okay so now let's get to what I finally was able to find out so I've shared a lot of information here and I think many of you are listening to this this uh these numbers and saying you know what I'm doing okay you know it's hard to get that high high salary but if you're saving and if if you're uh spending less than you earn if you're saving that and then importantly if you're investing that remember it's not enough to just save you have to invest it you have to get compounding working for you so a lot of you I think are looking at the at least the savings number and saying yeah we're doing okay we're doing okay and I hope you are I hope you are okay so now getting on to the uh uh the the top income in retirement uh and before I get there if you're enjoying this video take a quick second and hit the like button it really does help the algorithm uh find other people that this this video uh and my videos can help okay so um I'm going to break this out the top 10% the top 5% and the top 1% so people people 65 to 69 now this is people that are working and not working top 10% is 200,000 top 5% is$ 260,000 top 1% is essentially $1 million okay so that's 65 to 69 and now for people 70 to 74 numbers come down a little bit top 10% is $170,000 top 5% uh is $26 is that right yeah 265,000 and the last number is a million dollar so retirees to be in the top 1% of all people 65 and older you need to be making a million dollars a year just to put that in perspective that rule of 25 if that's what the uh if that's what the income is then they had they'd have to have $25 million in savings by the the rule of 4% I hope you found this video helpful if you did I know you're going to like this video up here that talks about average income for retirees in America and this video down here that talks about five reasons to retire as soon as you can thanks for watching bye-bye

As found on YouTube

Retirement Planning Home

Read More

Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

I want to share an investment system for retirees to hopefully assist you as you're thinking about and planning for your retirement we're also going to look at how to prepare your retirement for the multiple potential potential economic Seasons that we may be headed into so we want to look at the multiple seasons and then the Easy System that's going to help lower taxes and then lower risk as well now if I haven't met you yet I'm Dave zoller and we help people plan for and Implement these retirement strategies really for a select number of people at streamline Financial that's our retirement planning firm but because we can't help everyone we want to share this with you as well so if you like retirement specific videos about one per week be sure to subscribe so in order to create a proper investment plan in system we want to make sure that we build out the retirement income plan first because without the income plan it's much harder to design the right investment strategy it's kind of like without the income plan it's like you're guessing at well 60 40 portfolio sounds good or you know May maybe this amount in the conservative bucket sounds reasonable you already know and and you feel that as you get close to retirement that goal of just more money isn't the the end-all goal that we should really be aiming for for retirement it's more about sustainability and certainty and then really the certainty of income and possibly less risk than before the last 30 years uh the things that you did to be successful with the financial side are going to look different than the next 20 or 30 years now if you need help defining the the income plan a little bit then look at the DIY retirement course below this video now once you do Define your goals for retirement and then the income needed to achieve those goals then creating the investment system becomes a lot easier and within the investment plan we really know that we can only control three things in all three things we actually want to minimize through this investment system the first thing we can minimize or reduce is how much tax you pay when investing we had a a client who was not a client of streamline Financial but of a tax firm coming to the the CPA firm in March to pick up his tax return and he was completely surprised that he had sixty thousand dollars of extra income on his tax return that he had to pay tax on right away before April 15th and it was due to the capital gains being recognized and other distributions within his investment account and he said but I didn't sell anything and the account didn't even go up that much last year and I got to pay tax on it but he was already in the highest tax bracket paying about close to 37 percent on short-term capital gains and dividends and interest so that was an unpleasant surprise and we see it happen more often than it should but this can really be avoided and here's two ways we can control tax so that we don't have to have that happen and really just control tax and pay less of it is the goal and I'll keep this at a high level but it'll get the the point across number one is the kinds of Investments that you own some are maybe funds or ETFs or individual uh equities or things like that the funds and ETFs they could pass on capital gains and and distributions to you each year without you even doing anything without you selling or or buying but it happens within the fund a lot of times now we would use funds and ETFs that are considered tax efficient so that our clients they can decide when to recognize gains rather than letting the fund company decide now the second way is by using a strategy that's called tlh each year there's many many fluctuations or big fluctuations that happen in an investment account and the strategy that we call tlh that allows our clients that's tax loss harvesting it allows them to sell an investment that may be down for part of the year and then move it into a very similar investment right away so that the investment strategy stays the same and they can actually take a write-off on that loss on their taxes that year now there's some rules around this again we're going high level but it offsets uh you know for that one client who are not a client but who had the big sixty thousand dollars of income he could have been offsetting those capital gains by doing tlh or tax loss harvesting that strategy has really saved hundreds and thousands of of dollars for clients over a period of years so on to the next thing that we can control in our investment plan and that's cost this one's easier but many advisors they don't do it because it ends up paying them less now since we're certified financial planner professionals we do follow the fiduciary standard and we're obligated to do what's best for our clients so tell me this if you had two Investments and they had the exact same strategy the same Returns the same risk and the same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times more at point six percent well I know that answer is obvious and we'd go with a lower cost funds if it was all the same low-cost funds and ETFs that's how we can really help reduce the cost or that's how you can help reduce the cost in your investment plan because every basis point or part of a percentage that's saved in cost it's added to your return each year and this adds up to a lot over time now the last thing that we want to minimize and control is risk and we already talked about the flaws of investing solely based on on risk tolerance and when it comes to risk a lot of people think that term risk tolerance you know how much risk can we on a scale of one to ten where are we on the the risk factor but there's another way to look at risk in your investment strategy and like King Solomon we believe that there's a season for everything or like the if it was the bird song There's a season for everything and we also believe that there's four different seasons in investing and depending on what season we're in some Investments perform better than others and the Four Seasons are pull it up right now it's higher than expected inflation which we might be feeling but there's also a season that can be lower than expected or deflation and then there's higher than expected economic growth or lower than expected economic growth and the goal is reduce the risk in investing by making sure that we're prepared for each and every one of those potential Seasons because there are individual asset classes that tend to do well during each one of those seasons and we don't know nobody knows what's really going to happen you know people would would speculate and say oh it's going to be this or this or whatever might happen but we don't know for sure that's why we want to make sure we just have the asset classes in the right spots so that the income plan doesn't get impacted so the investment system combined with the income system clients don't have to worry about the movements in the market because they know they've got enough to weather any potential season I hope this has been helpful for you so far as you're thinking about your retirement if it was please subscribe or like this video so that hopefully other people can be helped as well and then I'll see you in the next one take care thank you

As found on YouTube

Retirement Planning Home

Read More

RETIREMENT PLANNING TIPS FOR AGE 59+

Are you planning for retirement and  you're just not sure of the next step.   By the end of this video,  you will have received seven   crucial tips to help you plan for  a successful, secure retirement. To learn more about securing your retirement  and all the different elements you need to know,   subscribe to our channel and hit the bell so  you'll be notified of every episode posted on   Mondays. We have helped hundreds of our clients  with these exact seven tips on planning for   their retirement, and they tell us they've never  been more confident about their retirement plan.   Now it's your turn. Let's dive in. Tip number one, understand your spending. This  is really important. Now, what you do not want   to do here is to think about what your salary is  currently, while you're working.

You want to think   about what is your bring home pay after you've put  money in your 401(k), after you've been able to   pay health insurance, or whatever that might be,  that comes out of your paycheck. Think what comes   home on a monthly basis. Now, do you save any of  that money that goes into your savings account   at the bank? Take that out. What we really want  to know is how much do you actually spend every   month? By the way, if you have a mortgage or some  payment that's going to go away by the time you   retire, subtract that.

That will let you know what  your spending will be when you're in retirement. Tip number two, break income needs into three  different areas. You have your essential needs,   your wants, and then your giveaway money. It  may seem simple, but it's really important   to understand what those actually are. Your  essential needs are the basics, paying the bills,   keeping the lights on, staying  fed, staying relatively happy.   Your wants are going to be things that you want  to do. I know we work hard to get to retirement,   we don't want to give up our wants so we  want to plan for those as well. Things like   having that membership to a golf club or a  health club, being able to travel in retirement,   so being able to take those vacations  that you've been looking forward to. Being able to spoil your grandkids or family  members. These are all wants that we want to   have planned into the budget for retirement. And  then the last is giveaway money. So whether you   want to be gifting throughout retirement or  whether you want to be donating to charity,   or whether you just want to have a plan in place  for what you're going to leave behind, that   really comes into the giveaway money.

So three  major topics, when it comes to your expenses,   your essential income needs, your  wants, and then your giveaway money. Tip number three, list all of your guaranteed  income that will be there after you retire.   Now, it's really important now that you  understand it needs to be guaranteed. So   what are we talking about? Well, that's  going to be things like social security,   a pension, if you have one, or  if you've secured an annuity.   It's really important that they be guaranteed  because this part of your income plan is what's   going to help take care of those essential needs  in retirement. You do not want to count things   like rent or dividends. While they're nice and  they might be secure, they're not guaranteed.

Tip number four, don't rely on the 4% rule. You  may be asking yourself, what is the 4% rule?   Well, very simply, it's basically saying you  can take out 4% of your assets. So for example,   let's say by the time you get to retirement,  you've accumulated a million dollars. 4% of that   is $40,000. The rule, and this is a rule of thumb  by the way, the rule says that you could live off   of $40,000 a year for the rest of your life and be  okay.

Now, we see a couple of flaws in this rule. What if you're invested in  the market and your million   falls because of market volatility. So go to a  2008 scenario where the average investor loss,   anywhere from 30 to 50%. What if you  lost 50%? Now your million is 500,000.   Are you still going to be able to withdraw 40,000  a year to keep up with your living expenses?   Probably not. So that is something that's  very important that we realize that we   cannot rely on the 4% rule and we need a plan  that is structured for our specific situation. Comment below and let us know, what is your  biggest retirement planning question? Tip   number five, make a list of all of the different  types of accounts you have. Now, why are we saying   types of accounts? What does that even  mean? Well, you're going to want to list,   do you have a 401(k), 403(b), a traditional IRA,  a Roth IRA, or a brokerage account or a savings   account in the bank? You want to list all of  those account types and the reason why is because   they get taxed differently.

And so when you're  building out your retirement income plan, taxes   are extremely important. So make sure you make  a list of all the different types of accounts. Tip number six, consider how you feel about  investing during retirement. Let's talk about   this, how would you feel if you lost 10% of  your entire retirement nest egg? Well, when I   say 10% and you may say, "Well, that doesn't feel  like much." But let's put it to a dollar amount.   Let's say you have a million dollars saved up and  you lose 10% of that.

Well, that's a $100,000.   That may feel a bit more than just saying 10%,  right? So let's think about that. When you're   working and you're putting money into these  retirement plans, like a 401(k), typically you   started young and you set up an allocation that's  probably pretty aggressive, and you just set it   and forget it. You're putting money in and it's  making money, you don't really think about it.

But then you get down the line closer to  retirement, and you're still invested that way   when you should be considering your risk exposure  more and more, as you get closer to retirement.   So that's something that we have to think  about as we are transitioning into this phase.   Now, what we talk about is, you got to know  your risk tolerance and you got to understand   how you're currently invested. So many times when  we talk to people, they come in the door and they   don't even realize how much risk they have  on their overall portfolio. So that's why we   talk about always looking at alternatives that  are going to fit your investment personality. Tip number seven, don't overly worry about the  question, do I have enough to retire? Well,   why did we say that? Well, we have clients that  have a few 100,000 and we have clients that have   a few million dollars. And sometimes clients  that have a few million dollars do not have   as good of a plan as the person who has a few  100,000.

Why is that? Well, if you're spending   so much money that you're draining your accounts  too rapidly, you're at a threat to run out of   money, no matter how much you have. So what's  the bigger issue? Our spending plan. We need to   really understand how we're spending money and how  that's going to play out throughout retirement. So, as you're thinking about your retirement,  focus on your spending plan, more than being   worried about, do I have enough to retire? Well,  that's our seven tips to help you get started   down the path to secure your retirement, but what  else is needed? Well, there's a lot of different   moving parts when it comes to planning for,  and living through retirement. We have created   a mini video series called Four Steps to Secure  Your Retirement. These videos walk you through   step-by-step so that you will know exactly what  you need to do to secure your retirement. We also   have a podcast called Secure Your Retirement. You  can subscribe to our podcast with the link below.

For more detailed retirement tips, watch these  videos, create your retirement income plan,   investing during retirement, buy and hold or  active management. If you like this video,   hit the like button and be sure to  subscribe and share it with your friends.
.

As found on YouTube

Retirement Planning Home

Read More

Retirement Planning During Bear Markets – Especially if It’s Your First One In Retirement

bear markets can feel a lot different when you're retired and you're no longer earning income from work especially if this is your first bear Market since you stopped working when you were younger you know you had time on your side you know you may have even seen drops in the market as an opportunity because it gave you additional time and you got to purchase more shares well things were on sale so to speak but now most likely that's not the case the relationship between our money and our accounts now are of money going out versus money going in to put it simply and plus you may have noticed that there's this psychological component now around money and not wanting to mess things up because the decisions we make really carried much more weight now when we're close to or in retirement and it's really that's not only psychological or emotional it's true because planning the distributions is much more complex than the the planning around around saving and putting money into the investment accounts what led to our investment success the last 30 years is a lot different than what's going to lead to success the next 20 or 30 years or at last that's at least what we've been seeing at streamline Financial since 1998 since we've been around so I want to share how to endure through bad markets if you're close to retirement or you're already retired and then what you can do to actually take advantage of of this even if you're already retired and you're no longer saving money and we're going to do that because we know a universal law of physics that can't be disproven and we can actually apply it to our retirement and make it a little bit better if you're thinking Dave what the heck are you talking about here's a brief explanation so Newton's third law of motion is that every action there's an equal and opposite reaction right you've heard that before so the way that I see it is there's a positive to every negative and the same thing there's a negative to every positive it's the law of polarity so I want to share what the positive is to take advantage of during bad markets and by the way if I haven't met you yet I'm Dave zoller and Tim and Luke and I and Sean we run streamline Financial it's a retirement planning firm and we've been around like I had said since 98 so we've seen clients really go through it all the.com bust the financial crisis and then covet and then all the things in between all those uh you know those mini panics that we've had so we created this channel to share what's working and what has worked for them and so that you can hopefully glean some wisdom from them and then apply it to your your own life so the first thing we need to be aware of is that the previous 30 years there were four bear Market Corrections so that's a drop of 20 or more and then the 30 years before that there was a total of five bear Market Corrections so the main takeaway is we need to expect these bear markets to happen during our retirement during that next 20 30 years right the second thing is we don't want to make a change solely on an emotion right and it's not not just making a drastic change like selling everything and putting everything under the mattress right it's we were just talking to someone yesterday and emotions can cause us not to take an action when we know doing so is actually the Smart Financial thing to do for instance during March of 2020 when it wasn't easy to rebalance your accounts it was very difficult to do but if you did follow through and and do the correct rebalancing system or strategy if you were looking back now it could have made a lot of sense the third thing is update your income plan because that helps guide us and make really good planning decisions around our investment plan so it's really start with the income plan you've heard that before and that helps us make the investment decisions versus the other way around and updating your income plan during bad markets that can also give you some confidence as well as you're looking at where we are today and then looking at over the next few years and and seeing that things maybe aren't as bad as it might seem at least when you've got those two things of the unknown and then the known updating the plan is the known and you can get a little bit better picture on what the future might look like for you now to the two things that maybe could give us an advantage during a time like this this is back to the law of polarity so the possible things that we might be able to use here are well first before I say it as always this is not specific advice to you so we're not looking at your your plan together so before you do anything just talk to a financial professional but idea number one to think about is tax loss harvesting that could be a way to write off some of the losses while still keeping your investment strategy intact and I talk about this concept a lot more in other videos so I'm not going to go into details on it today but just keep that in mind the one thing to to really pay attention to though when we're we're talking about the law or talking about tax loss harvesting is that wash sale rule right so look for the other videos or talk to that Financial professional before thinking about doing that the second thing that could be a possible opportunity for really the first time in a very long time is that ability or option to lock in higher yields in that conservative bucket as you know the the bucket strategy you've seen that before where we've got the possible three buckets and having that conservative bucket here is a great way to plan out and prepare for for bad markets and now at the time of this recording some of those historically conservative asset classes are paying a higher interest a higher yield than what we've seen really over the last decade which could be a silver lining during this period of time so those are just two things possible things to look at which maybe could be taken advantage of by you for for your benefit so those are just two things to think about during this period of time that we're in right now if that short video was helpful please like this and then share it with others if you think it could help them too and if you'd like to talk more about your plan feel free to reach out to me in the in the description below or go to our website streamlinedplanning.com for get you click on the get started button we don't always have space available but you'll hear back from me either way so I hope that was helpful and then I'll see you in the next video

As found on YouTube

Retirement Planning Home

Read More

Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

I want to share an investment system for retirees to hopefully assist you as you're thinking about and planning for your retirement we're also going to look at how to prepare your retirement for the multiple potential potential economic Seasons that we may be headed into so we want to look at the multiple seasons and then the Easy System that's going to help lower taxes and then lower risk as well now if I haven't met you yet I'm Dave zoller and we help people plan for and Implement these retirement strategies really for a select number of people at streamline Financial that's our retirement planning firm but because we can't help everyone we want to share this with you as well so if you like retirement specific videos about one per week be sure to subscribe so in order to create a proper investment plan in system we want to make sure that we build out the retirement income plan first because without the income plan it's much harder to design the right investment strategy it's kind of like without the income plan it's like you're guessing at well 60 40 portfolio sounds good or you know May maybe this amount in the conservative bucket sounds reasonable you already know and and you feel that as you get close to retirement that goal of just more money isn't the the end-all goal that we should really be aiming for for retirement it's more about sustainability and certainty and then really the certainty of income and possibly less risk than before the last 30 years uh the things that you did to be successful with the financial side are going to look different than the next 20 or 30 years now if you need help defining the the income plan a little bit then look at the DIY retirement course below this video now once you do Define your goals for retirement and then the income needed to achieve those goals then creating the investment system becomes a lot easier and within the investment plan we really know that we can only control three things in all three things we actually want to minimize through this investment system the first thing we can minimize or reduce is how much tax you pay when investing we had a a client who was not a client of streamline Financial but of a tax firm coming to the the CPA firm in March to pick up his tax return and he was completely surprised that he had sixty thousand dollars of extra income on his tax return that he had to pay tax on right away before April 15th and it was due to the capital gains being recognized and other distributions within his investment account and he said but I didn't sell anything and the account didn't even go up that much last year and I got to pay tax on it but he was already in the highest tax bracket paying about close to 37 percent on short-term capital gains and dividends and interest so that was an unpleasant surprise and we see it happen more often than it should but this can really be avoided and here's two ways we can control tax so that we don't have to have that happen and really just control tax and pay less of it is the goal and I'll keep this at a high level but it'll get the the point across number one is the kinds of Investments that you own some are maybe funds or ETFs or individual uh equities or things like that the funds and ETFs they could pass on capital gains and and distributions to you each year without you even doing anything without you selling or or buying but it happens within the fund a lot of times now we would use funds and ETFs that are considered tax efficient so that our clients they can decide when to recognize gains rather than letting the fund company decide now the second way is by using a strategy that's called tlh each year there's many many fluctuations or big fluctuations that happen in an investment account and the strategy that we call tlh that allows our clients that's tax loss harvesting it allows them to sell an investment that may be down for part of the year and then move it into a very similar investment right away so that the investment strategy stays the same and they can actually take a write-off on that loss on their taxes that year now there's some rules around this again we're going high level but it offsets uh you know for that one client who are not a client but who had the big sixty thousand dollars of income he could have been offsetting those capital gains by doing tlh or tax loss harvesting that strategy has really saved hundreds and thousands of of dollars for clients over a period of years so on to the next thing that we can control in our investment plan and that's cost this one's easier but many advisors they don't do it because it ends up paying them less now since we're certified financial planner professionals we do follow the fiduciary standard and we're obligated to do what's best for our clients so tell me this if you had two Investments and they had the exact same strategy the same Returns the same risk and the same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times more at point six percent well I know that answer is obvious and we'd go with a lower cost funds if it was all the same low-cost funds and ETFs that's how we can really help reduce the cost or that's how you can help reduce the cost in your investment plan because every basis point or part of a percentage that's saved in cost it's added to your return each year and this adds up to a lot over time now the last thing that we want to minimize and control is risk and we already talked about the flaws of investing solely based on on risk tolerance and when it comes to risk a lot of people think that term risk tolerance you know how much risk can we on a scale of one to ten where are we on the the risk factor but there's another way to look at risk in your investment strategy and like King Solomon we believe that there's a season for everything or like the if it was the bird song There's a season for everything and we also believe that there's four different seasons in investing and depending on what season we're in some Investments perform better than others and the Four Seasons are pull it up right now it's higher than expected inflation which we might be feeling but there's also a season that can be lower than expected or deflation and then there's higher than expected economic growth or lower than expected economic growth and the goal is reduce the risk in investing by making sure that we're prepared for each and every one of those potential Seasons because there are individual asset classes that tend to do well during each one of those seasons and we don't know nobody knows what's really going to happen you know people would would speculate and say oh it's going to be this or this or whatever might happen but we don't know for sure that's why we want to make sure we just have the asset classes in the right spots so that the income plan doesn't get impacted so the investment system combined with the income system clients don't have to worry about the movements in the market because they know they've got enough to weather any potential season I hope this has been helpful for you so far as you're thinking about your retirement if it was please subscribe or like this video so that hopefully other people can be helped as well and then I'll see you in the next one take care thank you

As found on YouTube

Retirement Planning Home

Read More

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

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

As found on YouTube

Retirement Planning Home

Read More