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5 Things To Do 5 Years Before Retirement
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
– Hi everyone, Bill Lethemon
here for MoneyEvolution.com. In today's video, I'm
gonna be talking about five things that you should do when you're five years
away from retirement. Okay, so right off the bat,
number one is get organized. So, if you're planning for
retirement you might have a lot of your financial information scattered into a whole
lot of different places. Maybe you've got some
401(k) plans at work, or maybe even an old
401(k), some IRA accounts, maybe your spouse has
some retirement plans or old pension benefits. So the first thing you wanna
do is really kinda bring all of that information in together. We also wanna start to, in that process, start identifying how some
of those retirement resources are gonna be able to work for you to provide you with the retirement
lifestyle that you want. We call it your retirement gap. So fortunately, we've got
a couple of tools available to help you with this process.
One of those, and we'll
put a link right below today's video, we just
recently launched our 7 Core Elements of Retirement Planning video series and action plan, so that's kind of a
do-it-yourself type of a plan where you can start to
get some of this financial information organized. And of course, we also do
financial planning as well. We call it our WealthVision
comprehensive financial plan where we do it for you. So we'll put links to both
of those below today's video, but number one is get organized. Number two is we wanna
look at how we can kind of optimize some of those
retirement assets that you have.
We call this shift money
to tax advantaged accounts. So as you approach retirement, for a lot of people, we
find that your cash flow tends to improve or get
a little bit better. Maybe your kids have
moved out of the house, you're done paying for college, they're kind of
self-sufficient on their own. Hopefully if your career
and your job is going well you're maybe making a
little bit more money. So you might have a little
bit more cash flow available to save money for retirement. But we also wanna look at where some of those
monies are being saved. And what we find for a lot of people is if you have money in
non-retirement accounts, taxable accounts that you have to pay income taxes every year on, are there ways or opportunities for you to shift that over into
tax advantaged accounts.
And we find for many people, there are. So take a look at, are you
maxing out your 401(k) plan? Some 401(k) plans allow you
to save an additional 10% in an after-tax savings vehicle. There's a recent tax
law that now allows you to move that money directly
to a Roth IRA account, even if you're over the income limits. You can contribute money to IRA accounts or Roth IRA accounts, there's
lots of strategies there, but can we shift money from
one side of the balance sheet where you're not getting
that tax advantage over into a retirement
account, is number two. Number three is know
your healthcare options. This came up recently, and it was listed as one
of the number one concerns for retirees going into retirement is how much is my healthcare gonna cost? And understanding that is very important because it's some big,
big price tags on this. If you're working, and
your employer is offering healthcare insurance now, you
wanna visit the HR department. Find out, well, what do they do, do they do anything for you in retirement.
Is there any options to
continue that healthcare, especially if you are gonna
be retiring prior to age 65 when you're eligible for Medicare. If you're married, check out
what your spouse offers too and compare those different plans, start putting together some ideas of how much that healthcare is gonna cost because you don't wanna
get blindsided by that. In fact, there was actually a recent study that JP Morgan did a couple years ago, and they actually said
that if you had to go out into the exchanges, the
Affordable Care Act exchanges, for a 64-year-old it would
cost you about $8400 a year per person for just a Silver Plan, so that's not even the top-level plan. So understand what those options are, check with your employer,
that's number three. Number four is you wanna think
about your plan for income. So, hopefully, if you've
done some financial planning, you've identified some of those gaps, you know where those gaps are. And what we find oftentimes is especially early on in retirement, where your income and expenses still may be a little bit more variable, you wanna understand what
some of those gaps are and how much money will you
potentially have to pull out of those retirement accounts.
Are you eligible to take money out of those retirement accounts? Are you over 59 and a half if it's an IRA, are you over 55 if it's a 401(k)? You don't wanna get
hit with any penalties. Start planning out what that
income strategy's gonna be, and maybe having some of that money in a little bit more
conservative type of investments so you're not blindsided by,
oh my gosh, I'm retiring, I need to take $20,000 out
of a retirement account and guess what, the stock market's down. So think about that plan for income and where's the money gonna come from. And then number five, I love this one, because I think it kind of fulfills two issues here with retirees, and it's consider a semi-retirement.
So I think the idea for most of us, and in fact what I think
about my own retirement when that happens, the idea of
working 40, 50 hours a week, and then all of a sudden one
day just throwing in the towel and never working again
sounds a little bit abrupt. So we've been talking to a lot of clients about semi-retirement,
and easing your way into a retirement situation where maybe you go to a part-time status, maybe you do some
consulting for a few years, or maybe you just do a job that
you've always wanted to do. Maybe it doesn't pay a lot, but it's fun, and you enjoy doing it, and
it can also help to sustain some of that early
retirement spending needs that you're gonna have as well. So again, and especially
if you wanna do strategies like maybe delay social security benefits, having some of that semi-retirement income can really help fill
some of those gaps there.
So think about semi-retirement,
that's something that can be done during
the planning process where you can see how
that income might help your overall financial situation. That's it for this video, there you go,.
These Unseen Beings Can Give Fame, Talent, Wealth & Power! | Gurudev
Jason 0 Comments Retire Wealthy
The subtle consciousness has many layers to
it. The spirit is one, yet spirit is not one. There are many layers to the spirit. The whole universe is permeated by spirit,
by Brahman, yet in different degrees. A stone has one unit of life. Stones have life, and stones have gender. There are male stones and there are female
stones. The ancient people of every culture knew this. Stones do have one unit of life. Water has two units of life, and when there is fire there is three units
of life.
In the air, there are four units of life and space has five units of life. Trees have got six units of life, animals have got seven units of life, human beings have got eight units of life,
so they are called ashta vasu. Super human beings, or geniuses have blossomed
into nine units of life. Those are people who do an extra-ordinary
job. It need not be all positive, like Hitler.
Someone who does things which are inhuman,
in both senses, have got more units of life, nine units of life. Then humans can develop between nine to sixteen
units of life. When we die we become more powerful, in some
way. We go
between nine and ten units of life. This is strange, but true. That’s why ancestors are worshipped. The moment this body
drops, the spirit becomes free and it has more access there are no walls, no doors and nobody can
stop them and the spirit moves around freely. Bound in the body
you have only eight units, you can only reach out to some. When you are nine units you have little more
power. But if you
die then you have access to the ninth and tenth unit, so you
get more access in the planet. That’s why people who are
dead have the capacity to bless you.
They have more life
than you because their spirit, which is freed from the limited
body, can know, can cognize and can bless you. You can feel their presence They can grant you
some boons, not all. To whatever extent they are
powerful, that much they can bestow blessings on you. That’s one of the reasons that bodies
are buried behind the church. To make that place more powerful. So, ancestors have got
one step more power. In Sanskrit, they are called pitrs. There is one spirit which is
one grade higher than the pitrs. They are kinnaras. Kinnaras are those souls who are behind big
social-work or political set-ups, etc. Then comes the Gandharvas. The Gandharva souls are
behind every successful artist.
A great musician is not an
individual person who is singing. Through him there is a spirit
called a gandharva, and gandharvas bring you great fame. And they bring joy and happiness to the
population. But they make the person very miserable. See, Michael Jackson. I think that he's brought joy to so many
people, but his personal life is so miserable. Michael Jackson is one example, but there
are plenty of musicians and great celebrities. Beethoven & all of them you see. You take the history and look into them The only musicians that were happy were
the ones who found a path the ones who had a Guru. If they find a Guru, if they
have a path, they are liberated. Other than that they will be
famous. They will bring joy to others. But in their personal life
they will be miserable. Then, from the Gandharva level is the yaksha level, an other grade of souls.
Yakshas bring lots of wealth Very wealthy people are blessed by Yakshas Here again, Yakshas can bring comfort But they don't give the joy or happiness from their progeny. They are not satisfied with their own children. Or their children's behaviour Or their children's career Or something to do with their progeny makes them miserable. They don't know happiness from the progeny. If it happens in one generation, it will definitely not be so in the next generation.
Within the 3 generations they will be miserable. .
Again, if they walk on a spiritual path, this is
avoided. These are yaksha souls Every city has a Yaksha. New York has a yaksha, Los Angeles has a yaksha. Yaksha is the collective spirit of a place And there are so many yakshas. Beyond the Yakshas, one more level are the Devas Also called Angels. They are in between Yakshas and Siddhas. The perfected beings = siddhas There are 33 types of Devas And our body is governed by the Devas Devas are also called gods and goddesses. Deva means gods and
goddesses. It is not the God but gods and goddesses. an aspect of the divinity. The spirit which loves diversity expresses
itself in diverse forms. These diverse forms of that one spirit are
devas. Another example is one white light, when it
breaks up through a prism, so many colours emit, seven major colours But then so many shades and mixtures of those seven colours gives you a multitude of colours In the same way, from the Yaksha, a step higher is Devas Devatas, Devis.
So many different types of Devi, Devatas are there. So many types of spirits. You can call them angels. All only benevolent. And there are various qualities which are expressed in us that are part of the Devas. Brilliance is a Deva in you. Compassion is the blessing of a Deva. If you are happy, that is the blessing of a Deva Or the quality of a Deva getting manifested in you. So the yakshas, then devas and then siddhas. A siddha is a perfected human being who has
gone deep in meditation. Siddha, Guru – that is the level. They are kept a step above the
devas. That’s why in puja, when anything happens,
first Guru is honoured and then devatas. Gurubhyo Namaha – it starts from there. This is the tradition:
Guru and deva, yaksha, gandharava, kinnara, pitrus and human
being. There are these many levels of spirits..
5 Things To Do 5 Years Before Retirement
Jason 0 Comments Retirement Planning
Hi everyone bill Leff in here for money evolution dot-com in today’s video I’m gonna be talking about five things that you should do when you’re five years away from retirement ok so right off the bat number one is get organized so if you’re planning for retirement you might have a lot of your financial information scattered into a whole lot of different places maybe you’ve got some 401k plans at work or maybe even an old 401k some IRA accounts maybe your spouse has some retirement plans or old pension benefits so the first thing you want to do is really kind of bring all of that information in together we also want to start to in that process start identifying how some of those retirement resources are going to be able to work for you to provide you with the retirement lifestyle that you want we call it your retirement gap so fortunately we’ve got a couple of tools available to help you with this process one of those but number one is get organized number two is we want to look at how we can kind of optimize some of those retirement assets that you have we call the shift money to tax advantaged accounts so as you approach retirement for a lot of people we find that your cash flow tends to improve or get a little bit better maybe your kids have moved out of the house you’re done paying for college they’re kind of self-sufficient on their own hopefully if your career and your job is going well you’re maybe making a little bit more money so you might have a little bit more cash flow available to save money for retirement but we also want to look at where some of those monies are being saved and what we find for a lot of people is if you have money and non retirement accounts taxable accounts that you have to pay income taxes every year on are there ways or opportunities for you to shift that over into tax advantaged accounts and we find for many people there are you know so take a look at are you maxing out your 401k plan some 401k plans allow you to save an additional 10% in an after-tax savings via call there’s a recent tax law that now allows you to move that money directly to a Roth IRA account even if you’re over the income limits you can contribute money to IRA accounts or Roth IRA accounts there’s lots of strategies there but can we shift money from one side of the balance sheet where you’re not getting that tax advantage over into a retirement account is number two number three is know your healthcare options so this was this came up recently and it was listed as one of the number one concerns for retirees going into retirement is how much is my healthcare gonna cost and understanding that is very important because it’s some big big price tags on this so if you know if you’re working and your employer is offering health care insurance now you want to visit the HR department find out well what do they do did they do anything for you in retirement is there any options to continue that health care especially if you are going to be retiring prior to age 65 when you’re eligible for Medicare if you’re married check out what your spouse offers – and compare those different plants are putting together some ideas of how much that health care is gonna cost because you don’t want to get blindsided by that in fact there’s actually a recent study that JP Morgan did a couple years ago and they actually said that if you had to go out into the exchanges the Affordable Care Act exchanges for a sixty four-year-old it would cost you about eighty four hundred dollars a year per person for just a silver plan so that’s not even the top level plan so understand what those options are check with your employer that’s number three number four is you want to think about your plan for income so hopefully if you’ve done some financial planning you’ve identified some of those gaps you know where those gaps are and what we find oftentimes is especially early on in retirement where your income and the expenses still may be a little bit more variable you want to understand what some of those gaps are and how much money will you potentially have to pull out of those retirement accounts are you eligible to take money out of those retirement accounts are you over fifty nine and a half if it’s an IRA are you over 55 if it’s a 401k you don’t want to get hit with any penalties start planning out what that income strategy is gonna be and maybe having some of that money in a little bit more conservative type of investment so you’re not blindsided by oh my gosh I’m retiring I need to take twenty thousand dollars of a retirement account and guess what the stock markets down so think about that plan for income and where’s the money gonna come from and the number five I love this one because I think it kind of fulfills to two issues here with retirees and it’s consider a semi retirement so I think the idea for most of us and in fact what I think about my own retirement when that happens the idea of working you know 4050 hours a week and then all of a sudden one day just you know throwing in the towel and never working again it sounds a little bit abrupt you know so we’ve been talking to a lot of clients about semi retirement and easing your way into a retirement situation where maybe you go to a part-time status maybe you do some consulting for a few years or maybe you just do a job that you’ve always wanted to do maybe that pays a lot maybe doesn’t pay a lot but it’s fun and you enjoy doing it and it can also help to sustain some of that early retirement spending needs that you’re going to have as well so again especially if you want to do strategies like maybe delay Social Security benefits having some of that semi retirement income can really help fill some of those gaps there so think about semi retirement that’s something that can be done during the planning process where you can see how that income might help your overall financial situation
As found on Youtube
Read MoreRetirement Planning: How can we help your investments grown after retirement?
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
The concern we frequently obtain is can I retire.
as well as the inspiration behind our Sunnyside Up publication is when you retire it'' s something you. do one time as well as it the-the principle is prior to retired life when you'' re making an egg.
you'' re making an omelet you can get to right into the container and also if you break the egg and also it.
doesn'' t turn out exactly like you desire or there'' s some eggshells in there you obtain to.
get to into the container and draw out one more egg, however in retirement you can'' t do that.
Sunnyside. Up has to do with entering into retired life and making certain you do it right the very first time. Tyler, would certainly.
you share some principles out of the Sunnyside Up publication with a team? Absolutely. So, among.
the key phrases you may listen to regularly is all your eggs in one basket or savings.
right, but really the the-the phrase that we use instead of using nest egg or eggs is specifying.
your properties due to the fact that there'' s nothing left in the history that'' s continuing to build up for.
future development and also clearly with rising cost of living. Yeah. So, creating a strategy around a growth.
container as well as an earnings container is a very easy method to conceptualize where my income is originating from now.
as well as inevitably what'' s being reinvested for future development in the future, right.So, when we look. at that when the market ' s up, we want to slash off the gains from those accounts and also by essence. lock them into the earnings bucket.
That ' s exactly how we can remain to give ourselves raises throughout. retirement. You know one of the core concepts that we do with clients is looking at growth. and also income in different ways, however not checking out them individually. Just how they can collaborate. That ' s. vital that ' s bringing the entire savings together in significance with the book. I think Sunnyside Up. does a fantastic job of talking concerning that it is an excellent easy read with tales I actually think. you ' re mosting likely to enjoy it.
If it really feels like it is something you wish to read, simply click below. below, and get a cost-free download
of Sunnyside Up.
Sunnyside. Up is regarding going into retired life as well as making sure you do it right the first time. That ' s exactly how we can continue to provide ourselves elevates throughout. That ' s. I believe Sunnyside Up.
3 Big Retirement Withdrawal Mistakes
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
– Hey, every person. Expense Lethemon right here for moneyevolution.com. In today'' s video, I ' m gon na be speaking about 3 huge retired life strategy withdrawal blunders. So, if you'' re preparation for retirement, you ' re gon na be looking at just how you can make a shift from what we call the retired life build-up phase, when you'' ve been conserving and also spending cash for your retirement, into the retirement withdrawal stage. Now you'' re gon na take some of that cash that you saved, as well as you'' re gon na start dispersing that money back to you, begin taking some withdrawals. There'' s in fact three huge errors that we see constantly below, and ideally this video will help you prevent some of these mistakes. Blunder number one is most likely the most usual one that we see regularly, and it'' s waiting also long to start taking withdrawals.And this error can actually compound into a number of various other little errors that actually can cost you a whole lot of cash. One of the points, for instance, that we see regularly is individuals
will oftentimes begin taking their Social Safety benefits as early
as they can at age 62, and not only does this stop them from getting a larger Social Protection check and also kind of taking full advantage of that, but it additionally oftentimes ways that they ' re delaying taking their retirement withdrawals, and what that does'is it compounds itself in the future, due to the fact that as a number of you probably understand, at 70 1/2, the internal revenue service is gon na mandate that you ' re gon na start taking some withdrawals from those retirement accounts. It ' s called the Required Minimum Circulation Regulations.
So by taking several of those retirement withdrawals early, can capitalize of those reduced tax obligation years and additionally, at the exact same time,'help you get maybe a bigger Social Security inspect in the future, and likewise take some stress off of several of those needed minimum distributions.Maybe a few of those won ' t be so high and also pushing you up into those greater tax obligation braces. We can also look at perhaps doing some Roth conversions too as a means to, once more, make the most of a few of those reduced tax obligation years. Second is gon na be taking your circulations at too expensive of a rate. So what I suggest by this exists are some institutions of assumed out there. Most likely the most famous of this is something called the four percent rule, and this was a rule that was, that turned up by a financial organizer, William Bengen back in the 90s, and also he did a great deal of math, examined some chance and also stats, and claimed that if you restrict your retired life plan withdrawals to no even more than four percent of your entire portfolio every year, you need to have a respectable opportunity of chance that that money ' s gon na last you throughout the rest of your lifetime.So, if we think of four percent as sort of our, our withdrawal price that we should be targeting, consider that if we ' re.
at five or 6 percent, it may not appear like a large distinction', yet considering the mathematics and also the numbers, your possibility of running out of cash rises quite high once you. begin standing up to 5, and particularly as soon as you obtain.
up to six percent or even more. So making sure that you ' re not obtaining expensive of a circulation. rate, and also once again, one of the important things to figure that out is to have that long-lasting
. cash money flow forecast so you understand what those costs are, understand where your withdrawal price is available in. And then number'three is not recognizing your cash money flow demands.
One of the points. That ' s what William Bengen did when he did his research.
on the 4 percent policy. Even if we '
re earning making Allow s say state six or seven or eight percent. ordinary return with time, since of the sequencing of returns, as well as we can end up with. a poor string of years where we have several years. where we ' re not making that typical or'we have down markets, what is the influence of that. on our lasting capability to sustain our retirement withdrawals? Among the methods we can navigate that is we make use of a pail. approach for our clients.What that means is we'like. to keep one to 2 years worth of fluid money. gets in an account that ' s extremely risk-free, extremely obtainable, to ensure that as you require money to. supplement your retirement, we ' re not needing to take it.
out of some of the riskier investments that could be in.
the supply or the bond market. We likewise wan na have kind.
The third container is a long-term container.
Understanding those. Hope you currently know three. Ideally you ' ll prevent those mistakes.
If you wan na discover a little extra about several of the economic planning that we do right here, we have what we call a Riches Vision. detailed monetary strategy.
I ' ll put a web link right. listed below the notes right here, right below the video clip,.
as well as if you like, you can establish a totally free no-obligation. introductory telephone call with me. We can learn a little. bit concerning your circumstance and locate out of Riches. Vision is ideal for you. So, till after that, I will.
see you in the next video clip.'Have an excellent day
.
Making sure that you ' re not taking out too high of a circulation. That ' s what William Bengen did when he did his research study.
Also if we '
re earning gaining ' s say state six 6 seven or eight 8. With any luck you ' ll prevent those errors.
I ' ll placed a link.
Retirement Planning Timeline
Jason 0 Comments Retirement Planning
Hi everyone the lesson here for money evolution calm in today’s video I’m going to be talking about the retirement planning timeline and some of the key ages and milestones that you might want to think about in terms of your financial planning and getting ready for retirement so let’s start all the way over here on the left at age 50 is what we call where the serious retirement planning phase begin so that’s the age where oftentimes people may have gone through a major transition maybe your kids have moved out of the house maybe your cash flow is starting to improve because maybe you paid some debts off or your house off or you’re just starting to think about hey if we want to retire in 5 or 10 years what do we need to do to make that happen and what are some of the planning steps so 50 is the serious planning phase begins age 55 is another key milestone then not a lot of people are aware of but that’s the age where if you get to that age and you’ve retired on or after your 55th birthday you can take penalty-free withdrawals from your 401k plan so that’s a question we get a lot where somebody wants to retire 57 or 58 and they want to start taking some withdrawals but they don’t know how to do it well if as you keep the money in your 401k plan you can take those penalty-free as long as you separate after age 55 59 and a half is what we call the normal retirement age that’s where you can start taking penalty-free withdrawals from all of your retirement accounts 401ks and IRAs so that’s the magic age that the IRS has put on us 62 is the age when you’re eligible for Social Security benefits as an early collector so that’s the earliest that you’re eligible for your Social Security benefits 65 is the age where Medicare kicks in so that’s another important milestone for many of you watching this you may want to retire prior to age 65 unfortunately before age 65 you’re going to either have to hopefully have some insurance provided by your former employer or you’re gonna have to go out into the exchanges and buy that insurance on your own that’s something we talked about and some of our other videos there but 65 things get a little bit better you get on Medicare age 67 is what we call the full retirement what Social Security ministration calls your full retirement age so that’s where you get unreduced Social Security benefits and then at age 70 is the latest that you can delay collecting Social Security so if you wait past your 67th birthday you’re going to get about an 8% increase for every year that you wait but you can wait past that 70 but doesn’t make sense to you’re not going to get any additional benefit by waiting past age 70 and then 70 and a half is where whether you have a retirement withdrawal strategy or not the IRS has one for you and it’s called the required minimum distribution rules or RMDs and that’s basically if you have money in traditional retirement accounts the IRS has said hey you’ve gone long enough without taking it in this money out you need to start taking withdrawals and start paying some of the taxes on that money so all of this here that we’re looking at if you think about how your income and expenses work while you’re still working they’re gonna be you know pretty consistent you’ve got some income coming in you’ve got some expenses hopefully you’ve got some cash flow leftover at the end hopefully you’re saving some of that additional cash flow but then once retirement kicks in let’s say you retired at age 57 well you might not have any income coming in or maybe you have a small pension or a big pension coming in but you’re not even eligible for example to get Social Security benefits you may have higher expenses because you’re paying healthcare premiums out in the exchanges so at age 62 if you take Social Security benefits maybe that kicks your income up maybe your expenses go down once Medicare kicks since there’s a lot of this variability that’s going on so one of the things that we want to understand as we’re going through this retirement timeline is we want to understand a couple of things we understand what is our income today and more importantly or more specifically we want to know what is your tax rate today because that’s going to be very important for us in determining what that future withdraw strategy is going to be and maybe how or where we save that money while we’re still working so that’s very important versus that tax rate out here in retirement the other thing we want to understand is what we call your retirement gap and everybody pretty much has a retirement gap that’s why you say money for retirement so that you can start to take some withdrawals from your portfolio but understanding that gap is going to tell you or us how much money you might need to take from those retirement accounts it’s also going to factor into the more money you have to take out the higher that tax rate is going to be so we’re going to start to learn a little bit about what those tax rates are going to be throughout retirement and one of the things that we notice is generally from the time somebody retires to maybe age 62 or maybe even all the way to age 67 if you delay taking Social Security these are what we call the low tax years for many people and that that gives us some opportunity to do a couple of things number one it gives us a strategy for taking withdrawals because in these low tax years if we’re in a lower effective tax rate we can take more money out of those retirement accounts and do it at a reduced tax rate we also can look at doing something called a Roth conversion and so basically what that is is saying okay we’ve got some money in a traditional retirement account and hopefully if that money grows between now and age 70 and a half those accounts can sometimes grow fairly large which means that at age 70 and a half if you haven’t done anything preemptively before then you could end up in a potentially really high tax bracket so by doing a Roth conversion and taking advantage some of these low tax years kind of preempts that a little bit and as allows you to kind of spread that income out over a longer time period so having some really low tax years here and some really high tax years there we can kind of spread that out and keep hopefully things at a lower tax rate throughout retirement so those are some of the planning strategies that we do the other factor that goes into play here on having higher taxes is that also is going to affect your Medicare premiums so Medicare premiums if you don’t know already is tied to the amount of income that you made from actually the prior two years ago basically and higher that income is the higher the Medicare premiums are going to be and sometimes that could be substantial as well so by keeping that income a little bit more consistent hopefully can maybe keep your Medicare premiums a little bit lower as well so these all of some of the planning strategies that go into it the last thing I want to talk about here is in looking at some of these low tax years the potential RMDs we want to look at where are you contributing money while you’re still working and oftentimes what we see a lot is that people have put the majority of their money in traditional retirement accounts those are monies that they get an immediate tax benefit today because it comes off of your income and that’s what people like but again what that might be doing is putting them in a position where they’re paying more taxes in the future so for a lot of people you might want to consider look at making Roth contributions while you’re still working and balance that out a little bit because that’s going to be a situation where you’re not getting any tax benefit today but you can take tax-free withdrawals in retirement so it gives you a little bit of a balance there so hope this has been helpful hope this is helped make some sense on some of the things you should be looking at at these different ages this is something we do all the time with our clients and we do this through our wealth vision comprehensive financial plan of course we get into a lot more detail a lot more information about the tax rates and some of these strategies here
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Read More7 Core Elements of Retirement Planning
Jason 0 Comments Retirement Planning
Everyone bill Lessman here for money evolution calm in today’s video I’m gonna be talking about what I call the seven core elements of retirement planning so if you’re somebody that wants to get more serious about the planning that you’re doing for retirement then I think you’re really going to enjoy this video now if you’ve watched any of my other videos maybe on my blog or my youtube channel or Facebook page then you probably have already heard me talk a little bit about some of these seven core elements individually what I plan to do in this video is really bring them all together really show how each of these seven core elements are all interrelated and hopefully at the end of this video you’re going to have some information to help you make some more well-informed decisions about your own retirement but real quick before I get into the presentation I wanted to draw your attention to a free guide that I put together it’s the seven core elements of retirement planning guide and in this I have all of the information or a lot of the information that I’m going to cover here in today’s video plus there’s some great worksheets that you can complete on your own to really help you get a good start towards putting together some of this planning for yourself so to get access to that guide I’m going to put a link right below this video if you click on that link it’ll take you to a page just put your email address in there and we’ll go ahead and send you out that guide I’ll wait here and I’ll see everyone back here as we get into presentation okay so welcome back so if you’re starting to do some planning for your retirement whether retirements may be coming up in the next year or two or even if retirements still a few years off into the future you probably realize already that there’s a lot of different aspects of your retirement and that’s what we’re gonna be talking about here so let’s take a look at these seven core elements so number one on the list is we need to understand how much your retirement could cost and what we call identify your gap the second thing on the list is we need to know where to save money obviously there’s lots of choices there’s Roth IRAs there’s 401k plans traditional accounts so we need to know where to save the money based on your own personal situation and your own individual tax situation we also need to talk about Social Security obviously that’s going to be a big component for many of you watching this video is when to collect Social Security how to coordinate your Social Security benefits with your spouse if you’re married so that’s very important health care that actually may be what I think is one of the most underestimated or overlooked retirement expenses that’s out there and there’s a lot of information that you need to understand about health care so we’re gonna talk about that a little bit here we also need to look at 401k plans so you might have a 401k you might have a 403b plan at work or some other employer sponsored retirement plans we need to know how to best take advantage of that 401k plan there’s a lot of features that a lot of people may not fully be aware of that could be inside your 401k plan so how to take advantage of that is certainly very important we need to create a plan for income so if you’ve been investing for your lifetime and while you’re working you were in what we call the retirement accumulation phase once you go into retirement we need to think differently we need to look at how to plan for withdrawals on your portfolio we need to look at things much much differently for that and then finally the last item on the list is investments choosing the investments that are gonna fit within your individual retirement plans and to help you achieve what your retirement goals are unfortunately this item here that we list as number seven on the list is oftentimes the one that people look at first in fact if you turn on the business channel you look at CNBC or you open up the Wall Street Journal or read pretty much any financial publication if you flip through the pages a lot of the discussion a lot of the advertisements are all pushing you towards certain investments they’re talking about returns and the performance of this fund versus that fund they’re talk about mutual funds they’re talking about annuities exchange-traded funds they may be talking about costs you know in looking at low-cost options and they would have you believe that really this is the most important thing that you need to be thinking about regarding your retirement and certainly the investments are absolutely very very important but we want to look at these investments after we’ve already addressed these other seven core elements and if we start here with investments a lot of times we can kind of get distracted we can get thrown off course a little bit because we really haven’t put into thought here how those investments are gonna fit within your your own individual retirement plan but once we’ve addressed those seven core elements and we start choosing investments now we have a clear vision for what we need those investments to do and what we want them to do to create your plan for income and to create the retirement lifestyle that you want so we’re gonna get into each one of these here in a little bit more detail and I’m gonna again start to show you how each one of these seven core elements are gonna be interrelated with one another okay so let’s start right here in the middle what we want to do here with this very first core element is we want to try to understand how much your retirement is going to cost or could cost and we also want to identify how much of a gap you have between where you want to be for those retirement goals versus where you are today and what I like to refer to here what I like to think about is begin with the end in mind so here’s your retirement and what I want you to do is start thinking about what it is that you think your retirement is going to look like for example what will your housing situation be do you plan to stay in your current house do you plan to downsize homes do you plan to spend winter someplace warm you also want to think about the things that you want to do in retirement so you can have a lot of free time you’re not gonna have to go to work anymore so think about the hobbies that you plan to do you plan to play golf every day or do you like to travel and start thinking about how much some of those expenses are going to be and you also want to look and see okay so basically what is your current situation how much are you saving for your retirement how much money do you already have saved for retirement and what we want to look at here and I think this is very important that a lot of people may tend to overlook essentially is that we have a trade-off basically we have our lifestyle that we have today versus that lifestyle that we want to have in retirement and if we think about this for a second here if we spend all of our money today we don’t save anything for retirement we’re gonna have a great lifestyle here today but that retirements not going to look very good contrary to that we could be saving a whole bunch of money for retirement putting away all kinds of money but that may be sacrificing that lifestyle that we have here today so I want you to think about that a little bit in terms of what are you trading off and I think there’s a lot of people because they haven’t maybe done some of these calculations they could be in a position where they’re saving almost too much money for the retirement they’re really sacrificing and giving up a lot of things today and there’s a couple of different categories of this there’s there’s things that of course we have our money that we’re saving so if we save more money today that’s less money that we can have for the future for that retirement but we also have time as well and so what I mean by that is we may be working ourselves putting all kinds of stress on our on our health on our situation by maybe working a whole bunch we’re saving a lot of money for retirement but we’re really sacrificing that quality of life here today and so be thinking about all of these different aspects not just the financial aspect of how much you’re saving but think about that think about like I said your health – and are you taking care of your yourself from a health standpoint as well because by the time we get to this retirement we want to have healthy bodies we want to be able to go out and do those things be able to play golf in and live that retirement lifestyle so again this is at the very center of these seven core elements and everything else is going to be interrelated to what this retirement gap is actually going to be and and how that’s going to affect that future retirement lifestyle okay so now that you’ve hopefully uncovered what this retirement gap is and you’ve really kind of gotten an idea of what your retirement cash flow is going to be and cash flow is something that we refer to a lot here on some of the videos that we do but really it is the lifeblood of not only your retirement situation but also your current financial situation it’s basically money coming in versus money going out and almost everything else on this list here is going to in some way or another affect cash flow the other thing that I want to talk about here before I start getting into each one of these seven core elements and a little bit more detail are taxes now when I created the seven more elements I thought a lot about how to include taxes should that be its own separate element and what I ultimately decided was that taxes are certainly very important and it’s a big part of what we do here in terms of some of our planning but what we’re going to talk about is we started looking at these seven core elements as we’re gonna look at how taxes are going to influence a lot of these different categories here okay so let’s start right off the bat and let’s talk about where to save money and obviously we have lots of choices we have Roth accounts like Roth IRAs you even have Roth’s 401k plans now and you have traditional accounts and and for retirement savings those are probably two of the most primary areas and basically that’s a big decision for a lot of us and what we really need to uncover is what is our tax situation likely going to be in the future versus what is that tax situation going to be today and again it goes right back here to this cash flow and understanding what those gaps are and what does our current situation today versus what is that situation going to be in the future so the Roth is going to be favorable if we think we’re going to be in a higher tax bracket in retirement than we are today and the traditional account is going to be more favorable if we think we’re going to be in a lower tax bracket in the future so we want to look at that the other thing we want to take a look at and I’ve actually got a entire video on our YouTube channel where I talk about this is investments for retirement in non retirement accounts and I go into a whole huge explanation as to why I think that is really just wasting a lot of money when it comes to to taxes there so again uncovering what those gaps are is going to help us to figure out where should we be saving money what’s going to be the most optimal for that future cash flow situation and for our current tax situation let’s look over here to Social Security again that’s going to be a very big component we could take Social Security benefits as early as age 62 or we could delay Social Security benefits to as late as age 70 and basically there’s a lot of decisions to make there again it’s going to come back to understanding that cash flow so there’s a lot of be out there talking about how to maximize social security benefits there’s even some calculators that you might be able to find out on the web what often times is missing from some of those calculators is how that decision as to when to collect Social Security is going to impact that cash flow situation and contrary how that’s going to affect your tax situation as well so we need to look at that and there’s also gonna be a coordination of benefits that you need to take into consideration if you’re married and you have a spouse because you might decide that one of you collects Social Security benefits early to get a little bit of cash flow coming in but maybe the other spouse is going to wait and delay those Social Security benefits whether or not you’re going to be working in retirement is also going to impact that and impact the potential taxes that you’re going to have on Social Security health care I talked about this here a few moments ago where health care I think is one of the most underestimated expenses in fact according to a recent survey or study by fidelity investments they determined that an average couple retiring this year that 65 years old could expect to spend two hundred and forty five thousand dollars on health care related costs over their retirement lifetime so that is a huge number a quarter of a million dollars just to cover and fund our health care and that does not include by the way any potential nursing home expenses or long-term care expenses so that’s a big deal we also need to consider health care for any of you that may be planning to retire before Medicare that starts at age 65 so you need to look at how your maybe employer benefits if you have any that are going to continue into retirement how that’s going to come into play or if you have to go out into the exchanges and go out into the Affordable Care Act in fact actually according to the Kaiser Family Foundation they put together some great research on this health care stuff but they actually said that a 64 year old couple could expect to spend about seventeen thousand dollars a year on their health care premiums for a policy that kicks in before Medicare starts and that still leaves them with about a sixty six hundred dollar out-of-pocket expense that they could have in addition to that $17,000 so that is by no means a top-of-the-line gold playing effect that’s actually a silver plan kind of in the middle there but you can see if you want to retire prior to age 65 that that can start to get pretty expensive the other thing here too again taxes are going to also influence your health care as well because your Medicare premiums are going to be largely dependent on what your taxable income what that adjustable gross income is for the year so the higher that is the more likely you are to be paying on your Medicare premium so again understanding that cash flow and understanding what that future cash flow is going to help you hopefully make some better decisions regarding healthcare as well your 401k plan is going to be another one of these seven core elements that you’re going to want to optimize unfortunately in my opinion I think a lot of 401k plans have really kind of watered down some of their investment options here over the last several years but there’s a couple of things that you can still do to hopefully optimize or maximize some of the benefits that you have on your 401k plan so one of those things is you can go all the way up to eighteen thousand dollars a year in contributions if you’re under 50 years old and if you’re 50 years old or older that number can be as high as twenty four thousand dollars a year and most people probably just understand that these are the limitations of the 401k plan but some 401k plans in fact more and more are offering this feature you may have access to an after-tax savings account within your company sponsored retirement plans and that could allow you to go all the way up to as much as fifty four thousand dollars a year in total retirement account contributions and that’s going to be a combination of your contributions plus any employer match that you might be getting can be as high as fifty four thousand dollars so that can allow you to extend even further some of the contributions that you’re making inside the 401k the other thing that a lot of 401k plans are offering now is something called a self-directed account and that is an option that you could have inside your 401k plan that could give you access to literally thousands of additional investment options that are not of the main 401k menu so again not every 401k plan is gonna have these features but you want to definitely look into it and see if that’s something now your self-directed account that may not be for everybody either because there’s going to be a little bit more research and a little bit more due diligence that you’re going to have to do on choosing investments but it could be a great option for somebody to get some additional resources in that 401k plan and then the last thing what will the second the last thing we want to talk about here are planning for income and again we talked about this a little bit earlier that you’re in a much different stage of life once you start going into retirement and you’re gonna start withdrawing or taking money out of some of these investment accounts and something we call the sequence of return starts to become a very important factor so if you think about it like this you know the market obviously is going to go up and down over time and when you are in the retirement accumulation stage of your investing as the market was maybe going through these these these motions as the market was maybe going down you were continuously hopefully making new investments into those accounts as the market was dropping and but the opposite happens though when you go into retirement if we go through a downturn and you’re withdrawing money out of those portfolios that’s going to have a very negative effect or can potentially have a very negative effect so we definitely need to take that into account but what we need to do before we do that is we need to understand what this cash flow is and understand where those gaps are so once we understand where those holes are in your financial plan and we know that in certain years you need to take a certain amount of money out of your retirement accounts then we can plan for that accordingly and sometimes what we do is we use what we call a bucket strategy and we just usually divide the portfolio into three buckets and we want to have some cash reserves maybe one to two years worth of cash needs in a very liquid very safe bucket so that when you do need to take money out you’re not having to withdraw money from volatile investments that could be invested in the stock market you also may want to have kind of this mid-range thing maybe three to four years or three to five years worth of money that’s in a my liquid bucket that’s still going to be on the more conservative side and maybe some of those investments are going to pay some dividends or some interest to help you refill that that first bucket and then finally over here is your long-term bucket and that’s gonna be investments that are gonna hopefully keep up with inflation provide you with some growth that hopefully if you’re in retirement for what could be 20 years or maybe 30 years in length that you’ve got some growth vehicles there but we want to think and break down this down so that you have a plan for income and keep in mind that if you don’t have a plan for income the government has one for you it’s called the required minimum distribution rules and so you may know that after you turn 70 and a half you need to start taking mandatory distributions every year from your IRA accounts in your 401k plans as part of this RMD so having your own plan is usually going to be better than reverting back to the government’s plan and then finally we talked about this earlier the last thing that we want to look at is the investments that we select and again once we’ve answered all of these other issues we’ve looked at the six other core elements then actually choosing the investments becomes pretty easy because now we know what investments are gonna fit into our buckets as an example which investments are going to be able to provide that income or those distribution needs which ones are going to be appropriate for your tax situation that are gonna you know help you you know plan for your Social Security your health care and all of that and then we can start looking at different investments that are going to fit into that retirement plan okay so there you have it those are the seven core elements of retirement planning and hopefully you’ve gotten some great information here out of watching the video here today and hopefully you’ve gotten a pretty good idea of how these seven core elements are all interrelated to each other and how making a decision about one item such as social security or healthcare or choosing investments why that doesn’t necessarily live in a vacuum and how maybe tweaking something over here might have an influence on something over there and so really bringing everything back to cash flow is really very critical so you understand how you know making a change in one category of your retirement planning you know might impact something else so again hopefully you’ve already downloaded the guide take your time look through some of the information in there we try to be very thorough with some of that we’ve got again some great worksheets that are gonna help you really get a good start on putting together some of these retirement plans and certainly think about what you want that retirement to look like also – for some of you you may want a little bit more help and of course we do that we offer a comprehensive cash flow based financial plan that can take a look at this and we will address not only your cash flow today but what that cash flow is likely to be in the future based on what you’re currently doing and we can also start to look at each one of these seven core elements and look at how each one of those is going to help you achieve those retirement goals and even if retirement still a little bit more often in the future if you’ve been saving money or maybe you’ve been putting off some of the planning that you’ve been doing again this is something that can help put you on a good track towards making you better well informed about getting retirement planning done
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