Tips for saving for retirement

Jason 0 Comments August 24, 2022April 13, 2023 Retire Wealthy

We just don’t save like we used to that’s the verdict from financial experts and we’re not just talking about Millennials they say 45% of baby boomers don’t have any gold IRA retirement savings that’s a staggering number about a quarter of all workers and 21% of retirees say they have less than $1,000 saved according to the Employee Benefit Research Institute’s 2022 retirement confidence survey so we want to help get results for our friends when it comes to getting some money in the bank saved up we’ve invited financial expert James D Virgilio back to news 6 and 9 and you know this is a depressing statistic to think about so if you are already nearing that retirement age very quickly what are some ways to accumulate some wealth in the climate today well if you’re the youngest boomer your age 55 if you’re the oldest your age 75 and the advice is going to depend on what stage you’re in if you’re 55 you need to invest and not save a lot of people say save for retirement but if you put that money in a bank account you’re not going to get enough to be able to retire and if you’re 55 you have to invest a lot we’re talking about 25 percent of your gross income if you’re just 65 years older we’re talking half of your gross income needs to be invested you’re going to delay when you retire to age 70 or age 75 as you age so it can be done but it is difficult yeah that sounds I can’t imagine putting fifty percent of my income into investing and you also say that there’s some things you need to remember when it comes to Social Security this is probably the most important thing for boomers because while not everyone could save that much of their income especially if they haven’t yet taking social security at the right time makes a huge difference you can take it early at age 62 you could take it on time between age 66 and 67 or late if you will at age 70 each year that you wait though you get a guaranteed 8% return in annual payments so it’s generally best to delay this as long as possible that’s going to significantly increase your payout and the most important thing to look at is how healthy you are if you’re not healthy this would change what you’re going to do but Social Security and when to take it one of the most vital things for a baby boomer and you say don’t fall for mythical insurance what is that mythical insurance and this is this is a really important thing to don’t mix insurance with investments don’t purchase the annuities don’t purchase whole life insurance these things are often sold psychologically to eliminate fear when it comes to investing the market may go down I’ll protect you with some sort of insurance but the reality is if we had a sort of financial Armageddon and the markets all went to zero no insurance would pay out on that anyway so they’re going to take your money invest it like you would and they’re going to charge you a lot more so you’re far better off investing this money on your own but we see all those celebrities who look so trustworthy on TV telling us this is what we need so you’re saying that they’re not telling us the right information right they’re selling something to you and I think that’s probably the most important thing we’ll talk about today is how to find somebody that’s not going to sell something to you but someone who’s going to do what’s best for you and how do you find that right person you have to find a fiduciary and that word is often sort of laughed at or made fun of because no one hears about it but it is the most important word in wealth management it means that person is going to do what is best for you at all times ask your financial advisor or the person you’re seeking to hire are you my fiduciary at all times that is the most important question you can ask and so is that the make or break between how much money they make off of the investments that they’re working on with you that’s a piece of it but in reality of fiduciary has a legal obligation to do what is in your best interest 85% of financial advisors are not your fiduciary their job is represent their company the products they sell or to do what is merely suitable for you so there’s a huge difference and not only expertise but also care for you as an individual and everyone that’s different circumstances I believe that they all should be taken care of with their best interests in mind well we talked about baby boomers what about in general because you’re saying young people aren’t saving and there’s a I guess a false sense of security about having plenty of time to start doing that it’s incredibly important no matter what age you are to save ten percent of your gross income and invest that ten percent every single year that’s not a magical number that’s the number that allows you to replicate your standard of living when you get into your 60s and that’s really the goal for all of us accumulating wealth it gives you flexibility it won’t make you happy but it will give you flexibility and it’s really important to have that as we age because we have no idea what our future self is going to be like right and people are living longer and so we have to plan for more years Oh many more years in fact it’s highly likely that out of the three of us here two of us are gonna live past 85 and and maybe one of us live past 90 and so you may retire for 25 or 30 years and that’s why it’s so important to save and invest your money otherwise you will not be able to provide for all of your needs in retirement IRA or 401K now you’re counting on family or social security which may or may not be the same by the time we retire so it’s very very important to provide for yourself through saving and investing but bottom line it’s not too late for any of us it’s not too late for any of us almost I suppose but the most important message is learn from the wisdom of others right save and invest now and begin to provide for yourself wonderful thank you so much advice thank you James

As found on Youtube