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Listen to Johnson Brunetti's Money Wisdom with Joel Johnson CFP®, host of Better Money Television program and Forbes Contributor. Gain true financial wisdom and advice aimed at educating you about all of your financial options when it comes to retirement so you can make the best decisions for you and your family. Get information and education that can bring you peace of mind with your savings and retirement. Whether it’s your 401k account, IRA, or an underperforming asset, Joel Johnson can answer your questions and make you more aware of issues that may affect you.

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Aug 17, 2018

Main Questions Asked:

Will I have enough income to last my retirement, longer life expectancy, and outpace inflation?

Am I being smart about planning my retirement while still helping my kids and looking out for my parents?

Do I have lazy money that is not earning a good return?

 

Key Lessons Learned:

The Glory Days of Retirement Planning

  • Fewer people have pensions these days. Companies are also trying to buy out pensions. We are on our own a little bit more.  
  • Longer life expectancies. Living longer is great, but we need more money to last longer. Many people will live past 100. We also will need to keep up with the cost of living.
  • Taking care of parents and kids. It is harder for the sandwich generation and there is an emotional component. There can be a high cost with long-term care and kids in college.
  • More takers than contributors to Social Security. Working people pay in now for those who take it out now. There will be a shortfall when more baby boomers retire. Have extra savings to offset the possibility Social Security could get cut.
  • Retirement planning is more difficult with 1% interest rates. Lower expectations and don’t reach for risk to make up the returns. No one has been hurt, but it will change.

 

Lazy Money That’s Not Earning a Good Rate of Return

  • What is lazy money? It’s money either earning a very low return or money that is just sitting around in cash. This excludes emergency fund money.
  • How to help people who have too much lazy money? Help find investments that limit the downside and use different products to get a higher rate of return safely.
  • The instinct not to have money exposed to the market is correct. But if you are not earning enough to keep up with inflation, you are going backwards. You need a solid plan. Only emergency money should be at the bank.

 

Links To Resources Mentioned

Money Map Retirement Review

1-800-757-0436

The Lump Sum Pension Payment Guide: 7 Crucial Factors of Your Decision to Take Monthly Payments or Rollover a Lump Sum

Thank you for listening!