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10 Essential Tips for Successful Retirement Planning

Hello and welcome to our channel. 
Today we will be discussing the   top 10 tips for retirement planning.
Before we get started, it's important   to note that retirement planning is a personal 
journey and what works for one person may not   work for another. It's important to take the time 
to understand your own financial goals and needs,   and to seek the advice of a financial professional 
if you have any questions or concerns.
  As always, make sure to Like and 
subscribe to the channel to stay   up-to-date on all of the latest news.
Now, without further ado, let's dive   into our top 10 tips for retirement planning:
Number 1. Start saving early. The earlier you   start saving for retirement, the more time your 
money has to grow through compound interest.

Even   if you can only save a small amount each month, 
it's important to start as early as possible. By   starting early, you may be able to retire earlier 
or have more flexibility in your retirement plans.   It's also important to increase your savings 
over time as your income and expenses change.
  Number 2. Contribute to a 401(k) or 
other employer-sponsored retirement plan.   Many employers offer 401(k) plans or 
other retirement savings plans that   allow you to contribute a portion 
of your salary on a pre-tax basis.   This means that the money you contribute to your 
401(k) is not subject to income tax at the time   of contribution, which can help you save more for 
retirement. These plans often come with employer   matching contributions, which can be an excellent 
way to boost your retirement savings.

For example,   if your employer offers a 50% match on your 401(k) 
contributions up to 6% of your salary, and you   contribute 6%, your employer will also contribute 
3% of your salary to your 401(k). It's important   to contribute enough to your 401(k) to take full 
advantage of any employer matching contributions.
  Number 3. Consider a Traditional or Roth IRA. If 
you don't have access to an employer-sponsored   retirement plan, or if you want to save more 
for retirement on top of what you're already   saving through your employer plan, you may want 
to consider opening a Traditional IRA or a Roth   IRA.

These are both individual retirement accounts 
that allow you to save and invest for retirement   on your own. A Traditional IRA allows you to 
contribute on a pre-tax basis, similar to a   401(k), but the contributions are tax-deductible. 
A Roth IRA allows you to contribute after-tax   dollars, but the money grows tax-free and 
can be withdrawn tax-free in retirement. Both   Traditional and Roth IRAs have annual contribution 
limits, so it's important to be aware of these   limits when making your contributions.
Number 4. Diversify your investments.   It's important to diversify your investments in 
order to spread out your risk and potentially   increase your chances of earning a return. This 
can be done by investing in a mix of asset classes   such as stocks, bonds, and cash. Within each 
asset class, you can also diversify by investing   in a variety of individual securities such as 
different types of stocks or bonds. For example,   you could invest in large, medium, and small 
company stocks, as well as international stocks.   This type of diversification can help reduce the 
impact of market fluctuations on your portfolio.
  Number 5.

Understand your risk tolerance. 
Different investment strategies come with   different levels of risk, and it's important to 
understand your own risk tolerance when planning   for retirement. If you're not comfortable 
with a lot of risk, you may want to focus   on more conservative investments such 
as bonds or cash. On the other hand,   if you're willing to take on more risk, you may 
want to invest a larger portion of your portfolio   in stocks. It's important to find the right 
balance for your own situation and to review   your investment strategy regularly to ensure 
it aligns with your goals and risk tolerance.
  Number 6.

Rebalance your portfolio regularly. 
As you get closer to retirement, it may be a   good idea to rebalance your portfolio to be more 
conservative. This can help reduce the potential   for loss as you near retirement and need to 
start withdrawing from your savings. Rebalancing   involves selling some of your higher-risk 
investments and buying more conservative   investments in order to bring your portfolio back 
into alignment with your desired asset allocation.   For example, if you originally had a 60/40 
asset allocation (60% stocks, 40% bonds),   but the value of your stocks has increased 
significantly, you may want to sell some   of your stocks and buy more bonds in order to 
bring your portfolio back to a 60/40 allocation.   Rebalancing should be done on a regular 
basis, such as annually or every few years,   to ensure that your portfolio stays in 
line with your goals and risk tolerance.
  Number 7.

Consider working with a financial 
advisor. A financial advisor can help you   develop a retirement plan that aligns with 
your financial goals and needs. They can help   you understand your options and make informed 
decisions about your retirement savings. They   can also help you create a financial plan that 
takes into account your current and future income,   expenses, and debt. Working with a financial 
advisor can be especially helpful if you have a   complex financial situation or if you're not sure 
where to start with your retirement planning.
  Number 8.

Plan for healthcare expenses. Healthcare 
expenses can be a significant factor in retirement   planning, especially as you age. It's important to 
consider how you will pay for healthcare expenses   in retirement, whether that be through Medicare, a 
private insurance plan, or out-of-pocket expenses.   Medicare is a government-run health 
insurance program for those 65 and older,   but it does not cover all medical expenses. You 
may need to purchase additional coverage, such   as a Medigap policy or a Medicare Advantage plan, 
to fill the gaps in coverage. It's also important   to consider the potential costs of long-term care, 
such as nursing home or assisted living expenses.
  Number 9.

Think about your lifestyle in 
retirement. It's important to consider what your   lifestyle will be like in retirement and how much 
money you will need to sustain it. Will you want   to travel or pursue hobbies? Will you need to pay 
for housing or will you have a mortgage-free home?   Understanding your retirement lifestyle can help 
you plan for the amount of money you will need to   save. It's also important to consider how long you 
expect to live in retirement and whether you will   have any sources of income besides your retirement 
savings, such as a pension or part-time work.
  Number 10. Keep an eye on your retirement 
accounts. As you get closer to retirement,   it's important to regularly check in on your 
retirement accounts and make sure they are   on track to meet your goals.

This can help 
you identify any areas that need improvement   and make any necessary adjustments to your 
retirement plan. It's also a good idea to   review your investment strategy and make sure 
it's still appropriate for your situation.   If you're working with a financial advisor, 
they can help you with this review and   make any necessary changes to your plan.
Thank you for watching. We hope these tips   have been helpful as you plan for your retirement. 
Remember to consult with a financial professional   if you have any questions or concerns.
Make sure to Like and subscribe below to   stay up to date on all of the latest 
news. We will see you next time!.

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Retirement Planning: Are you Ready for Retirement? with Oak Harvest Retirement Success Plan

[Music] welcome to the retirement income show on Market Lane alongside the CEO and founder of Oak Harvest Financial Group that of course is Troy sharp Troy is a certified financial planner professional his team at Oak Harvest is incredible if you want to go to the website to learn more elk Harvest financialgroup.com Oak Harvest fg.com works as well a lot of great information on the website you can learn about Jared Kinney Ryan Kenny you can learn about Chris Paris Jessica canella the whole team there's just a phenomenal team Oak Harvest financialgroup.com and of course you can always go to the YouTube channel there's over 300 videos on there about any topic you can think about in the financial world the retirement world uh it's phenomenal and there's no cost you subscribe you'll know when all the new ones are out but there's no cost to any of that YouTube check out Troy sharp and Oak Harvest Troy's office located at 921 oral City Way I-10 and Bunker Hill they they are here for you if you need help they would love to help they just don't know if they can help until you reach out and you can do that just by giving them a call 800-822-64-34-800-822-64 34 today we're going to be talking the retirement success plan Troy is going to explain what this is and it's the process so it's about investment planning income planning tax planning health planning Estate Planning and they all go together Social Security and Medicare are in there as well you know you've done this for a long time you sat down with a lot of people so you kind of understand the common mistakes the common things that we Overlook as well this will be good going through the retirement success plan how are you going to inform us today of this retirement success plan well just like we have as humans we have basic needs right we have that hierarchy of we need shelter we need food we need security in retirement or once we get to retirement people have their the same concerns the same questions we all have the same let's call it fears do we have enough you know can you retire when can you retire how much can you spend when you do retire without the fear of running out of money we all want to pay less tax right the government can get their fair share but not a not a penny more and whatever that fair share is it's it's defined differently based on your plan so if you take the government's plan there they want to get as much from you as possible and the tax law is set up in a way that if you don't plan for taxes in retirement oftentimes we see people in situations where if they keep doing what they're doing 200 300 500 800 we sat down with a client prospective client recently and we're doing this analysis it was well over a million dollars in taxes if he kept doing the his way of things the way that his advisor had him doing it in regards to his income plan and tax plan and retirement well there was no tax plan obviously but his income plan was going to lead create this domino effect of his tax bill being over the course of time over the course of 25 years over a million dollars in estimated taxes that he was going to pay that he simply didn't have to pay if he went about a different approach the approach that I'm going to talk with you about today as far as step three of our retirement success process the tax planning aspect so just like we have basic needs as human beings we have basic concerns when it comes to retirement and we've created the structured process and that's the beautiful thing about the retirement success plan is it's a plan that is something that is actionable but it's also living and breathing it's something we will review with you throughout the year once you're a client but it's also a process and we believe in structure here we're really big on structure and process and that keeps us organized that keeps us on schedule and that keeps us ahead of the planning curve in order to do the things that we promise for everyone that's entrusted so much to us and I'm talking about your retirement you worked for 30 years 40 years 50 years in some cases and you save up whether it's five hundred thousand dollars or five million or 50 million you need a team of people that of course are knowledgeable but before education and certifications and designations and training and experience first and foremost you need somebody that cares okay if you start there with someone that's a fiduciary and not just you can be a fiduciary and still do the wrong thing I've seen it for years in the industry where fiduciary advisors still sell mutual funds that have high fees and commissions and they can make justifications for why they're selling them or why they think you're they're in your best interest I don't believe that they are personally um we would never put someone into a mutual fund that is charging a five percent front end commission and then you know has two or two and a half percent of hidden fees and we've seen that for for years coming from fiduciary firms fiduciary advisors so you start with from Ground Zero are you working with somebody who truly cares who's truly passionate about retirement so with that philosophy in mind that's the foundation of of what we look at when we hire people here at Oak Harvest Financial Group you could have all the designations in the world all the education all the experience but if if you're arrogant if you're not humble if you're not hungry if you're not continuing strive to be continuing to strive to be a better person we don't want you to work here because that foundational element do you care about the people that you're working with on a human level if that's not there then you know we don't want any part of that type of person I don't care how much you produce how what the metrics are when it comes to how we measure advisor performance so that's the foundation now once you have someone that cares you want a structured process in place to deal with those big questions that you have the big concerns that you have so do you have enough yet it's not just a yes or no question it's a function of how much do you spend what is your health situation if you're healthy yes of course you're going to live longer most likely but are you planning for the increased medical costs in increased probability of needing long-term care or Assisted Living these are aspects that healthier people do have to absolutely be concerned about those that are less healthy it's less likely you're going to have a two or three year four or five year stay in a long-term care facility or need nurses in the home so when we talk about do you have enough and can you retire these are all the answers to those questions are function of how much do you spend what is your longevity what is your health situation your of course your family history um but not only that it's what are we doing with the other aspects of this process meaning the income planning side the tax planning side what about the health care side you know are you retiring before Medicare do we need to look at some type of Health Care planning that qualifies you to receive a subsidy so you're not paying two thousand dollars a month for both spouses for health insurance that maybe we get it down to 400 a month or 600 a month or maybe no out-of-pocket costs whatsoever for health insurance premiums you can do that with proper planning but you need the right type of asset structure meaning if you have all your money in retirement accounts this is where tax planning comes in when you take money out that goes on to your 1040 your tax return and then you probably aren't going to qualify for as big a subsidy as if you had money saved and non-ira accounts so this the structuring of income planning tax planning Health Care planning and then of course the estate side of things this is all what the oak Harvest retirement success process the retirement success plan is and that's what you receive when you become a client it is a very clear and structured process that we go through but then it's also a plan that is living and breathing and we're making adjustments as time goes on tax law changes economic conditions change goals change your spending levels will change it retirement is and we've only learned this you know from years and years of experience the best delayed plans we can't just set him and forget them you know plans need constant monitoring just like a plant or a garden or you know a human being so the retirement success process we're going to get into today to to today we're going to focus on the first three steps the first step is risk management and investment planning next step is income planning so income planning is social security when do we take that it's not just based on the math which it does play a role but when we start to look at are you a conservative investor okay versus an aggressive investor investor that plays into the Social Security election decision of course your Health and Longevity plays in market conditions okay are we in a recession when you're thinking about taking social security are your accounts down 20 30 percent or did we have a really really good year last year and it looks like we're gonna have a good year this year all of these factors kind of tie in to that income planning component as well as many other we're going to talk about and then the big one we're gonna we're gonna get into is tax planning that's step three of the retirement success process and when you start to understand that retirement is a set of dominoes when you're young you work you put the kids through school you deal with traffic you deal with bosses you deal with if you run your own business all the headaches that come with that you deal with so many different things money is really really simple it's life that's complicated in the accumulation phase once we get to retirement now life gets a little bit more simple it's the money it's the decisions you have to make and the realization that every single decision you make how you invest the portfolio impacts not not only how much income you can take today but how much income you can take down the road the sequence of returns risk based on how you've invested sequence of returns is if the market goes down and you're also taking money out you exacerbate that downturn in the market because there's no paychecks coming in you're you're pulling money out and losing in the market so these decisions every single one that you make it's a domino effect it impacts everything else it impacts the tax plan it impacts the income strategy can impact the health care it can impact absolutely the estate plan so we walk you through this process so we have a plan in place we call it the retirement success plan and the goal is for you to have security first and foremost but what I find most often is the outcome is that people feel more comfortable they feel more secure and they're able to enjoy retirement a bit more because they've they have a plan in place that addresses all these certain needs but also through the continual monitoring and adjusting and conversations one thing I love about our process is when someone comes to us and we have that first meeting where it's just get to know you you know no pressure no obligation no cost we get the information we do an analysis between that first and that second visit and then when we come back on that second visit you actually get to see what it's like to be a client at Oak Harvest Financial Group because that second visit with us we're starting to go through the foundation of a financial plan we're starting to discuss the decisions that you have to make not only this year but in the future so that's almost exactly what it's like to have an annual review with us or a semi-annual review with us so I love that about our process is that you get to see before you ever decide to become a client what it's like to actually be a client when we have up on the big television screen all of the information the choices you have to make the impact of making different decisions how it impacts your taxes how it impacts your income how it impacts your account balances when we do a sensitivity analysis and and show you okay this outcome in the market and this outcome for income decisions versus this one here are the possible outcomes for those choices and that those combination of choices so you get to see what it's like to actually be a client just through our normal process of going through that first second and third visit with us many Engineers it takes a little bit longer than that sometimes it's four or five visits but our goal is to Simply provide value we want to make deposits in your life we want to provide value and you know people see that value and they say you know what I think you guys could be a great part of my financial team my retirement team and yes I want to work with you Troy so if that's you if you don't have a retirement success plan if you don't have a tax plan income plan if you don't understand the guard rails what I'm going to get into in this next segment as far as risk management in retirement give us a call we want you to leave a message there's no one here working on the weekends if you're watching this on YouTube if you're listening to this later and it's during the week sure give us a call someone will pick up but we want to have a conversation just to see what's important to you who you are if you're a good fit for what we do and of course you can ask questions to see if we're a good fit for you and then we'll schedule that first visit there's no cost no obligation we can do it through Zoom we can do it in person at the office right here at I-10 and Bunker Hill in Memorial City and that first visit we'll have a cup of coffee a glass of water and just get to know each other and if we are a good fit at that point we'll get that second scheduled we'll do the analysis that I talked about and we'll walk you through that retirement success process so you can have those big questions answered do you have enough can you retire and how do you pay less tax 1-800-822-6434 1-800-822-6434 Oak Harvest Financial Group check out the YouTube channel check out the website Oak Harvest Financial Group so when you think about this this is what I think you should really like about it it's you're working with the team at Oak Harvest for your retirement right to coming up with that retirement success plan you're the CEO it's your retirement look at Troy and the team at Oak Harvest as your Chief Financial Officer here to help guide you you're going to make the decisions they're going to give you the choices right and it's up to you because it is your retirement it's your hopes and dreams your bucket list and all of that it's really important though that they understand your feelings your thoughts your hopes your dreams it is about you so you've got to talk to them and they're here to listen and they're here to help again that number is 800-822-6434 risk management how important is it what actually is it Troy we'll explain when we come back this is the retirement income show with Troy sharp out of Oak Harvest Financial Group back right after this investment advisory services offered through Oak Harvest Financial Group LLC Oak Harbor's Financial Group is an independent Financial Services firm that helps people create retirement strategies using a variety of insurance and investment products investing involves risk including the loss of principal any references to protection benefits or lifetime income generally refer to fixed Insurance products never Securities or investment products insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company Oak Harbor's Financial Group LLC is not permitted to offer a No statement made during this show shall constitute tax or legal advice you should speak to a qualified professional before making any decisions about your personal situation we are not affiliated with the US government or any governmental agency this radio show is a paid placement foreign [Music]

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Step 1 The Retirement Success Process: Investment and Risk Management

foreign welcome back to the retirement income show I'm Mark Elliott here with the CEO and founder of Oak Harvest Finance group we're talking about the retirement success plan once it's in place it's not done it's not finished it's always changing and evolving with you and your life so it's really important to get this in place to have a plan give you more confidence and and be more comfortable in retirement with maybe hopefully not so much stress about where you are again that number is 800-822-6434 to learn more 800-822-6434 Troy's breaking down what is exactly the retirement success plan so it starts with the investment plan then it's the income plan then it's a tax plan then it's a health plan and then it is the estate plan so I want to kind of tie together why that sequence is is important just briefly but if you don't understand if you don't have a proper risk management structure in place obviously you open the potential for losses beyond your willingness to stay the course now it's not just stay the course with the Investments it's stay the course with your retirement success plan with your financial plan so we have to Define what those guard rails are first this is the process of understanding where your risk limitations are so if you think about you're going down a highway and of course you have guard rails on each side and if you go off the highway those guard rails are there to protect you from going into the opposing Direction on the freeway now in retirement when we're talking about managing risk when we can identify these emotional guardrails so are you willing to see and I and I'd like to Define risk in terms of dollars not percentages and I'll tell you why in a minute but let's say you have a million dollars saved for retirement if all that money is in your 401k first and foremost we have to realize that it's not really a million dollars because every dollar in there is tax deferred so we have to understand we're going to address that as part of this process but when we talk about risk we have to understand that not all of those dollars are yours you have a junior partner on that account we want to keep them a junior partner we don't want Uncle Sam to become a senior partner or a majority share owner of your retirement account but just understanding that that not all of that money is yours that you do have a junior partner in that account it ties into this risk management discussion a little bit so when we talk about risk in terms of dollars are you willing to see your account go down two hundred thousand just a question could be yes could be no it doesn't there is no right or wrong answer but by asking these questions we can start to Define where your emotional guard rails are because the number one thing that you can do when it comes to ruining a financial plan or a retirement plan is to have more risks so your accounts go down more than you can mentally tolerate emotionally withstand and then you sell get out sit in cash for two or three years miss the rebound and now you're you're in a you know you're in a bad bad bad spot I can't tell you I mean we've been through this so many times with clients and conversations about you know Troy I've been watching the news I think we're going into recession we need to get out of the market we need to do this or my accounts are down 10 or 20 or when covid hit we there's a plan for for a proper plan accounts for the markets being down 20 or 30 percent so when we talk about risk management and we're asking you these questions the reason why is because we're already planning for recessions we're planning for potential Market crashes this is part of life okay we cannot avoid these things unless we completely stay in cash and if that's the case you might as well bury the money in the backyard and just spend whatever you can and hope you don't run out and eat rice and beans for for for retirement and that's not how most of our clients that's not how most of you want to spend you know after working for an entire career you want to spend your life so are you okay with a 200 000 decline by the way which is 20 and the reason why I Define it in terms of dollars is because a long time ago I had a client come in well it was a prospective client at the time and like most financial advisors we would talk about it in terms of percentages and and we said are you okay with a 10 or 20 decline he said you know what 20 is pretty much my Max and he had around a million dollars so then I I just happened to put it in terms of dollars and I said okay so if your accounts go down two hundred thousand dollars you're okay with that and he said he said no Troy he said I would fire you on the spot and so that you know for me it connected a Big Dot It was kind of a big evolution in my career when I was younger because I realized I'm a financial guy I do this every single day I think in terms of percentages and statistics and and but most people think in terms of dollars so when we ask you that question you say yes I'm okay with a 200 000 or 100 000 or maybe it's not even close to that or maybe it's much much much more what that does for us is it helps to Define what type of portfolio we need to construct so emotionally there's a small probability that it is going to hit your your downside guard ramp and if we can go through retirement and not ever hit that downside guard rail well there's a very good chance from our experience that you're going to stay the course you're going to stick with your plan and if you can stick with your plan you have a much higher probability of success in retirement this is why we call it the retirement success process this is why we call it a retirement success plan this is what we want to deliver to you so now I said I wanted to talk a little bit about the sequence and why risk management in investment planning comes first if we don't and in most simple terms if if your money let's say you have a million bucks and you never had to take anything out if you average four percent versus nine percent at higher rates of return you obviously can expect your accounts to grow to a larger value that means the income planning is impacted that also means that now your tax planning is impacted so we can't build an income plan or a tax plan without first understanding an estimated reasonable expected return for a combination of Securities inside a portfolio so step one has to be this risk management discussion which then can lead us to the investment construction of your portfolio which then gives us a pretty good idea of expected return upside downside deviation so we can now start talking about income planning we can actually project and do a sensitivity analysis on tax planning based on different account levels let me break that down for you before we get into the tax planning section later on the show if you have a million dollars in your IRA you are forced to start taking a certain percentage out it's around four percent at age 72 but as you get to be 74 76 77 you're required to distribute a larger and larger percentage so if your million grows to 1.5 you take let's say four percent of that out that's a that's a number that is less than if your IRA grows to 2 million so the more aggressive your portfolio is or the higher expected return the more we should anticipate that require minimum distribution being a larger number that rmd is the amount you're forced to take out and pay taxes on we've seen clients I I'd like to phrase this for prospective clients because we address this with you as a client this is part of the retirement success process and the retirement success plan but so often when someone comes in here and they've done a pretty good job saving they have eight hundred thousand they have a million they have two or three million when we start to do this analysis if you don't address this tax problem and it is a tax problem it can be you know a tax nightmare for many of you those rmds when we get out to be 75 and 77 or 78 a hundred thousand hundred and fifty thousand two hundred thousand now you're taking that money out you're probably not spending that much on top of Social Security on top of any rental income or real estate income or pension or dividend or interest or any other income that you have outside of your retirement account and we've seen many people be in a much higher tax bracket and have much more income in their 80s than they ever had throughout their entire life up to that point and it's because of a lack of planning so that's what we're trying to get ahead of so we have to understand the risk structure of our portfolio and how we manage that risk so we can keep you on course we can keep you on schedule with your plan that then gives us an idea of a range of expected returns based on basic financial planning Concepts from there we can develop that income strategy and income is not just Social Security it's not just how much to take out don't get me started on the four percent rule but it is also from which accounts and then we get into the taxes so if you don't have a retirement success plan give us a call 1-800-822-6434 we're going to walk you through this process if you become a client you will have this plan in place that deals with risk Investments taxes income along with the rest of the retirement success plan 1-800-822-6434 Oak Harvest Financial Group check out the website check out the YouTube channel Oak Harvest Financial Group so we're talking about the retirement success plan Troy still got a lot to get to stay with us we're back in one minute investment advisory services offered through Oak Harvest Financial Group LLC Oak Harbor's Financial Group is an independent Financial Services firm that helps people create retirement strategies using a variety of insurance and investment products investing involves risk including the loss of principal any references to protection benefits or lifetime income generally refer to fixed Insurance products never Securities or investment products insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company Oak Harbor's Financial Group LLC is not permitted to offer a No statement made during this show shall constitute tax or legal advice you should speak to a qualified professional before making any decisions about your personal situation we are not affiliated with the US government or any governmental agency this radio show is a paid placement foreign [Music]

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Step 1 The Retirement Success Process: Investment and Risk Management

foreign welcome back to the retired life income show I'' m Mark Elliott right here with the chief executive officer as well as founder of Oak Harvest Money group we'' re speaking concerning the retirement success strategy once it'' s in area it'' s refrained it ' s not finished it ' s always transforming and advancing with you and your life so it'' s really crucial to obtain this in position to have a plan give you much more confidence and as well as be a lot more comfortable in retirement with perhaps with any luck not so much stress and anxiety concerning where you are once more that number is 800-822-6434 to discover more 800-822-6434 Troy'' s damaging down what is specifically the retired life success plan so it starts with the financial investment strategy after that it'' s the earnings plan after that it'' s a tax obligation strategy then it ' s a health insurance and after that it is the estate plan so I intend to type of connection together why that sequence is is essential just quickly however if you don'' t understand if you wear ' t have a correct danger management framework in position certainly you open the potential for losses past your readiness to persevere now it'' s not just stay the training course with the Investments it ' s remain the training course with your retired life success strategy with your monetary strategy so we need to Define what those guard rails are initially this is the procedure of recognizing where your threat restrictions are so if you think of you'' re decreasing a highway as well as certainly you have guard rails on each side and if you go off the highway those guard rails exist to protect you from going into the opposing Direction on the freeway currently in retirement when we'' re discussing handling threat when we can recognize these psychological guardrails so are you going to see as well as I as well as I'' d like to Define threat in terms of bucks not percents and I'' ll inform you why soon but'allow ' s say you have a million bucks saved for retired life if all that money is in your 401k most importantly we have to realize that it'' s not truly a million dollars because every dollar in there is tax obligation deferred so we have to comprehend we'' re mosting likely to resolve that as part of this procedure however when we chat regarding risk we need to comprehend that not every one of those dollars are yours you have a junior companion on that account we want to maintain them a younger companion we wear'' t want Uncle Sam to come to be an elderly partner or a bulk share proprietor of your retirement account but simply recognizing that that not every one of that money is your own that you do have a jr companion in that account it connects right into this threat monitoring conversation a bit so when we talk regarding risk in terms of bucks are you happy to see your account go down 2 hundred thousand just an inquiry might be of course might be no it doesn'' t there is no right or incorrect answer however by asking these concerns we can begin to Define where your psychological guard rails are because the leading thing that you can do when it comes to spoiling a monetary strategy or a retirement is to have even more dangers so your accounts decrease greater than you can psychologically endure psychologically stand up to and afterwards you market get out being in cash for 2 or three years miss out on the rebound and currently you'' re you ' re in a you recognize you ' re in a bad negative negative spot'I can ' t inform you I mean we ' ve been with this a lot of times with customers and discussions regarding you recognize Troy I ' ve been seeing the information I believe we'' re going right into recession we require to leave the marketplace we require to do this or my accounts are down 10 or 20 or when covid hit we there'' s a prepare for for a correct strategy accounts for the marketplaces being down 20 or 30 percent so when we talk about risk administration as well as we'' re asking you these inquiries the reason that is since we'' re already preparing for recessions we'' re preparation for possible Market crashes this belongs to life all right we can not prevent these points unless we entirely stay in cash and if that'' s the instance you may too hide the cash in the backyard and just spend whatever you can and wish you don'' t run out and also eat rice as well as beans for for for retirement and that'' s not how the majority of our clients that ' s not how a lot of you desire to spend you understand after functioning for a whole job you wish to spend your life so are you fine with a 200 000 decrease by the way which is 20 as well as the reason I Specify it in regards to dollars is due to the fact that a long period of time ago I had actually a customer been available in well it was a potential client at the time and like the majority of economic consultants we would talk regarding it in regards to percentages and and we claimed are you fine with a 10 or 20 decrease he said you recognize what 20 is quite much my Max as well as he had around a million bucks so after that I I simply took place to place it in regards to bucks and also I stated okay so if your accounts go down 2 hundred thousand dollars you'' re alright with that and he said he claimed no Troy he said I would certainly fire you on the area therefore that you know for me it linked a Huge Dot It was type of a large development in my occupation when I was more youthful due to the fact that I understood I'' m an economic individual I do this each and every single day I believe in regards to percentages as well as stats and as well as yet the majority of people believe in terms of bucks so when we ask you that question you state yes I'' m all right with a 200 000 or 100 000 or perhaps it'' s not also near that or possibly it'' s much much much extra what that does for us is it helps to Define what sort of profile we require to create so emotionally there'' s a tiny possibility that it is mosting likely to hit your your disadvantage guard ramp and if we can go via retired life and never hit that disadvantage guard rail well there'' s an excellent opportunity from our experience that you'' re mosting likely to persevere you'' re mosting likely to stick with your plan and also if you can stick to your plan you have a much higher possibility of success in retirement this is why we call it the retired life success procedure this is why we call it a retired life success plan this is what we wish to supply to you so currently I claimed I wished to chat a bit about the series and why threat management in investment preparation precedes if we don'' t and in the majority of straightforward terms if if your money allow'' s claim you have a million bucks as well as you never ever needed to take anything out if you average four percent versus nine percent at greater prices of return you clearly can expect your accounts to expand to a bigger worth that indicates the income preparation is influenced that additionally means that currently your tax planning is influenced so we can'' t construct a revenue strategy or a tax obligation plan without initial understanding an approximated affordable expected return for a mix of Stocks inside a profile so step one needs to be this risk administration discussion which after that can lead us to the investment construction of your profile which after that gives us a pretty excellent suggestion of expected return benefit drawback discrepancy so we can now begin chatting regarding income planning we can actually project as well as do a sensitivity evaluation on tax planning based on various account levels allow me break that down for you before we enter into the tax preparation section later on the program if you have a million bucks in your IRA you are compelled to start taking a certain portion out it'' s around four percent at age 72 yet as you obtain to be 74 76 77 you'' re called for to distribute a larger as well as larger portion so if your million expands to 1.5 you take allow'' s claim four percent of that out that'' s a that ' s a number that is less than if your IRA expands to 2 million so the extra hostile your profile is or the higher expected return the more we need to prepare for that call for minimum circulation being a bigger number that rmd is the amount you'' re forced to obtain as well as pay taxes on we'' ve seen customers'I I ' d like to expression this for prospective clients since we resolve this with you as a client this belongs to the retirement success procedure and the retirement success strategy yet so usually when somebody comes in below and also they'' ve done a respectable job conserving they have eight hundred thousand they have a million they have two or three million when we start to do this analysis if you put on'' t address this tax obligation problem and it is a tax obligation problem it can be you know a tax obligation headache for a lot of you those rmds when we get out to be 75 and also 77 or 78 a hundred thousand hundred and also fifty thousand two hundred thousand now you'' re taking that cash out you'' re possibly not spending that much in addition to Social Protection in addition to any rental revenue or realty revenue or pension or returns or passion or any type of other earnings that you have beyond your pension and also we'' ve seen lots of people remain in a much greater tax obligation brace and also have much even more revenue in their 80s than they ever had throughout their whole life up to that point and also it'' s due to an absence of intending so that'' s what we ' re attempting to be successful of so we need to recognize the risk structure of our profile and exactly how we handle that threat so we can maintain you on training course we can keep you on timetable with your plan that after that gives us a suggestion of a range of expected returns based on fundamental monetary preparation Principles from there we can create that income strategy as well as earnings is not just Social Safety it'' s not simply just how much to secure wear'' t obtain me started on the 4 percent regulation however it is additionally where accounts as well as after that we enter the taxes so if you wear'' t have a retirement success strategy give us a phone call 1-800-822-6434 we ' re going to walk you with this process if you come to be a customer you will have this strategy in position that deals with risk Investments taxes income in addition to the remainder of the retired life success strategy 1-800-822-6434 Oak Harvest Financial Group examine out the site check out the YouTube network Oak Harvest Financial Team so we'' re discussing the retirement success plan Troy still obtained a great deal to reach remain with us we'' re back in one minute investment advising solutions offered with Oak Harvest Financial Team LLC Oak Harbor'' s Financial Group is an independent Financial Solutions company that assists individuals create retirement approaches using a range of insurance policy and financial investment products investing includes risk including the loss of principal any recommendations to security advantages or lifetime earnings generally refer to fixed Insurance policy products never ever Stocks or investment items insurance and also annuity product assurances are backed by the financial toughness and claims paying ability of the releasing insurer Oak Harbor'' s Financial Group LLC is not allowed to supply a No declaration made throughout this show will make up tax obligation or lawful guidance you should speak with a certified expert before making any type of decisions regarding your individual situation we are not associated with the United States federal government or any type of governmental company this radio program is a paid positioning international [Music]

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