May 25, 2018
Learn how things have changed when it comes to retirement. This
is not your father’s retirement.
Main Questions Asked:
- What things are now different as I enter the world of
- Is it ok to work past the age of 65?
- Will I need more or less income than when I was working?
Key Lessons Learned:
Modern Retirement Changes
- It’s okay to work past the age of 65. In some cases it is even
healthy. It’s not uncommon to have CEOs work beyond 65. People
sometimes work not because they have to but because they want to.
Although, some have to work because their retirement ages have been
moved up. It’s just an expectation that people work longer.
- Being retired might be more expensive than working. The old
rule of thumb was that clients needed 20% less income. The reality
is that retirement has a larger price tag. Staying healthy, going
to the gym, eating better food, and travel can cost more. There is
no guarantee that expenses will decrease.
- Portfolios today need to fund a lifestyle for 30 or 40 years.
It’s unfortunate to see Americans run out of money or have to cut
their lifestyles back. Planning for retirement was easier in the
old days when life expectancy was 73. People today need to plan on
living into their 90s. You have to have a plan that includes
inflation, market volatility, and tax changes.
The Three Worlds of Money
- The banking world. Our first introduction to the world of
money. The banking world today is good for our emergency and
short-term deposit money. It’s good for depositing paychecks and
paying bills. Short-term emergencies and bill paying.
- The insurance world. I own an indexed annuity. These may not be
right for everyone. What insurance companies do that banks can’t do
is pay higher interest because they hold onto dollars longer. You
have to make a time commitment.
- The Wall Street World. Moving up the scale from smaller risk
and low return to more risk and higher returns. Saving for
retirement in mutual funds. Most own stocks, bonds, or mutual
funds. The principle is take more risk and potentially more return.
There is also risk for loss.
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!