Month: February 2023
Tips for saving for retirement
user 0 Comments 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 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 2017 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 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
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Read MoreHow to Become Rich | Retire on $10 a day
user 0 Comments Retire Wealthy
Is it possible in this day and age to become a millionaire? Or perhaps the better question is why would you want to become a millionaire? I mean in media today Millionaires and billionaires for that matter are often not depicted in the best light. Characters like Scrooge McDuck or the always supremely evil C. Montgomery Burns come to mind here. And of course right now in real life we have the ever-present Donald Trump as one of the main poster boys of the super wealthy. So I suppose with that kind of media influence hovering over us our entire lives it’s not surprising that most of us have a fairly negative view of the super wealthy and many really do not want to become a part of it. Especially since the majority of us don’t personally know anyone who’s Super Rich so we don’t have anything to really balance the scales, and that’s all we can really draw upon is what we see in the media.
And that’s really unfortunate because there’s a lot of really great wealthy people out there. But most of them are not in the public eye and even the ones that are in the public eye like Bill Gates don’t get as much media attention as someone like donald Trump does. And as a result there are a lot of misconceptions about millionaires and the wealthy in general. Hey guys, Daniel here from Next Level Life and it recently occurred to me that I’ve been neglecting a huge part of what it takes to have that next level life that we all dream of… because whatever your dream life is, you need to have the finance resources in place first to be able to live it.
So with that in mind I’m going to be starting this new series on my channel covering various topics in the field of personal finance. And as you can see by the title for my first video of the series I wanted to talk about a simple plan that, if stuck to, will practically guarantee your future millionaire status as well as take a moment and really define what a millionaire is and is not. Because believe it or not even for the average American it is possible. No you know what possible is too soft of a claim because it’s more than possible. In fact if you follow a few simple steps it’s almost guaranteed. Don’t believe me? Well hopefully over the course of this video as well as the rest of my personal finance videos that will be coming out soon I’ll be able to convince you. So without further ado, let’s get started. What is a millionaire? A millionaire is simply someone who has a million-dollar positive net worth. Meaning after subtracting debts and other liabilities and expenses they have a million dollars worth of stuff leftover between their cash their house and all their other assets.
That’s really all there is to it. It has nothing to do with how much money you make. It has nothing to do with what type of person you are or how well-known you maybe, it simply means that your assets are valued at least 1 million dollars greater than your liabilities. But how can the average American get to that $1000000 positive net worth in their lifetime? I mean $1000000 that’s 6 zeros, i’d imagine that most of us have never written a check with more than three zeros. Unless of course you bought a new car or house with cash and if that’s the case kudos to you, you may not even need this video because you’re already probably well on your way to that million-dollar net worth. Now I said that if you follow a few simple steps it’s not only possible to reach that million-dollar marker, it’s almost guaranteed.
Let’s find out how. Well I did a few calculations and found out that over the course of the last 40 years the S&P 500 has returned an average of percent per year not including dividends. Now technically speaking past results are no indicator of future returns, but until we see the future returns this is the best we’ve got to go off of. So assuming that over the next 40 years the market does roughly the same as it did since 1978 you could invest $2per month over the next 40 years and become a millionaire. Again assuming no dividends. Now 261 dollars may seem like a lot but when you break it down it’s not even $10 a day, and there are lots of ways to save money. You can cut cable, or go down to a lower internet speed, or not eat out quite as often, or use coupons when you’re shopping for groceries, or you can do none of those things and instead find a way to make a little bit of extra income.
Maybe you start mowing lawns or shovel and driveways on the side, maybe you start selling old clothes that you don’t need anymore online, or if you’re young you might be able to start teaching people how to use social media better. You’d honestly be amazed at how many people would pay you to do that. There’s a ton of options out there, all you have to do is pick the one or maybe few that work out the best for you and start your own Journey on the path to becoming financially independent. Now there’s a couple of things that I want to clear up before ending the video for those of you who are a little bit more Analytical in nature. That percent is the geometric mean rate of return that the S&P 500 has had since 1978 according to Yahoo finance. All I did to get it was go through each year and look at where the market was in September because as of the recording of this video September just ended.
Then I put them all into the Excel spreadsheet and calculated the return. And I think the reason why we hear so many different rate of returns thrown around by Financial gurus is because of the inflation effect. I’ve heard gurus say that you can expect to earn anywhere from 6 to 10% per year in the market. And depending on what time frame and type of average you use any of those numbers could be true. For example if you go from 1978 and use an arithmetic average the average return on the market would be about percent per year. Inflation is generally assumed to be about three to four percent so if you adjust for inflation your realized return would be somewhere in that 6 – 7% range. If you don’t adjust for inflation of course you’re at nearly a 10 percent return. So there you go there’s a simple formula to retiring with the amount of wealth that most of us would consider to be rich.
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Read MorePlan For Retirement The Right Way with These Tips
user 0 Comments Retirement Planning
well planning for your life is always personal and a lot of times you want to be in full control but could you benefit getting out of your own way when it comes to financial retirement plan well Adam wolf Jacksonville’s retirement coach is here to explain how that works and Adam is one of the area’s leading certified financial planners his firm Wolf’s retirement navigation helps people plan for a successful retirement good to see you again brother great see Curtis all right how often do you do you run into a client who comes in and tries to tell you how to do your job yeah it’s about it’s about 50/50 and it’s it’s amazing because if we look at it and I try to do what you do it’s it’s almost next to impossible I mean my mother was a middle school teacher she also ran daycare centers I could never do that you know being around mourning and my daughter is too many kids so everybody has their idea of what they want retirement to look like they just need somebody to help them along the way and design that perfect retirement for them and that’s that’s what you do and I’m sure you get a lot of people saying they heard something on this TV show in this TV show and I think this is but it takes somebody like you who studies the entire thing to give them the best advice but what would you have an example of somebody who finally after you talked to him they saw the light and they were like here’s the keys to my portfolio go ahead yeah the best the best ones are there’s a perfect example one where the couple came in and they thought they both had to work another two years and so we took a look at what they had saved in their IRAs in their 401ks the gentleman had a pension and they both had Social Security we were able to design that plan to get her retired like within a month with him within a year and so let me tell you they’d like naming their pets after me now cuz they love you so much but it’s it gets to that point where that’s that’s why I do what I do because I do it every day and I’m there to help people meet their needs and get to that retirement that they truly dreamed of and I think that’s what the important part there is knowledge knowledge is power as they say we all learned that from school school of schools School House Rock but what what why is it so important for people to be not eligible about their retirement yeah so a lot of times you know they design it themselves or they’re working with somebody else who’s just may be focused on investments during their working years and as we get closer to retirement we have to take into account the investments the risk that goes into the taxes they the you know do we do we want to have enough that we’re gonna live and leave to our next generation and we want to take care of the spouses there’s so many nuances to retirement planning and that’s why we we focus on retirement planning and so doing that every day day in and day out is going to help our clients going forward and we hold education seminars we have workshops as well it’s all about the latest and greatest strategies new information new tax laws to better your overall life and retirement well for those people out there who are gonna come and see you obviously after seeing this so that they don’t come again let him do his job but so that so that they come fully prepared what are the type of things they should they should gather before coming to see you yeah we take we make the process very relaxing unlike a lot of financial services shops we have a great you know introductory meeting you bring what you’re comfortable with we have a list of items to gather as well to have an inventory of what you have but that really that first meeting is just you know what are your goals what are you trying to accomplish you know what have you you know you saved over the course of your retire of your working years to get you to in through retirement and because we only focus on retirement it allows us to key in on those issues that they really need to focus on to get them the best retirement possible good stuff all right man is good to see you again good see you if you’d like to learn more Adam has a great offer folks listen up for the first five callers with a portfolio of two hundred and fifty thousand dollars or greater he’s offering a complimentary full blown retirement plan just for you all you gotta do is call right now and that number is on your screen nine zero four two three two eight seven six zero again nine zero four two three – eight seven six zero that’s an incredible offer and you can
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Read MoreFactors That Can Reduce Retirement Income
user 0 Comments Retirement Planning
There are many different factors that can reduce retirement income. The first may be fairly obvious, but it’s the effect of death. For two spouses when there’s a pension involved, the death of a spouse could mean the loss of a pension income. Now if there’s a survivor benefit, that income may continue, so it’s important to evaluate your options when making pension decisions. A lot of people use insurance to protect against this type of income loss. Another way death can reduce retirement income has to do with Social Security. When two spouses are receiving Social Security and one spouse passes there will be a loss of one of the benefits. Now, the surviving spouse will receive the higher of the two benefits, but there still will be some loss of income. The final way that death can reduce retirement income has to do with taxes. Moving from married filing jointly to now filing single can push the survivor into a higher income tax brackets. The reason for this is that the income thresholds for married filers is about twice what it is for single filers. This can have a major impact on the surviving spouse’s net after tax income in retirement.
Taxes in general is another area that a lot of people overlook when it comes to retirement income. The reality is that taxes will take much more from you than the market ever can. For instance, going back to 2008 during the Great Recession, the average portfolio might have declined 20 to 30 percent, assuming it was well diversified, of course. That might have taken a couple of years to recover, but taxes in retirement can easily cost anywhere from 30 to 40 percent. And that’s money that will never come back. So it’s really important to consider where your different sources of income are coming from in retirement. Would it all come from pensions, Social Security, IRAs, 401(k)s, sources that will be taxed at ordinary income rates? Or do you have good tax diversification where you can choose from pulling money from maybe a Roth IRA raise or non-qualified accounts and really get a lot of control over your taxes in retirement? And finally, inflation. Inflation is absolutely something that can reduce your income in retirement. And it does this by reducing the purchasing power of your dollar in retirement.
Inflation isn’t just something that happened in the past – things will continue to cost more in the future. So let’s look back 30 years. 30 years is about the average timeframe for most people in retirement. So in 1989, the average cost of a first class postage stamp was twenty five cents. Today that same stamp will cost you fifty five cents. Also in 1989 the average cost of a new car was $15,000. Today the price of a new car will set you back on average $37,000. So you need to look at how well your different sources of income will keep up with inflation during retirement. For help optimizing your retirement income, visit us at PureFinancial.com. .
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Read MoreLife of Debt? How to: Obliterate Debt, Accumulate Wealth, and Retire Rich | Learn Liberty
user 0 Comments Retire Wealthy
It is an abomination. The Department of Education is a profit-making entity. Student loan debt now exceeds credit card debt. More than a third of college loans are delinquent. Forget about delinquencies. Let’s talk about default rates. The federal government is now hiring private creditors to harass students to pay back their federally subsidized loans. It’s a complete nightmare.” If you’re in your twenties or thirties, then you or someone you know is probably struggling with debt.
To top it off, the government owes about seventeen trillion dollars. Fifty thousand dollars for every man, woman, and child. That’s irresponsible! And you’re going to have to pay taxes to pay off that debt, too. It’s no wonder you’re being referred to as Generation Debt. The question is, is there anything you can do about it? Is there a way to dig out of this hole? I’m Art Carden. I’m an economics professor at Samford University’s Brock School of Business. In this Learn Liberty Academy program on personal finance, designed just for you, we’ll learn how to obliterate debt, accumulate wealth, and retire rich. I’m sure you’re wondering, ‘Hey, what’s the catch? Do I need to send this guy three easy payments of nineteen dollars and ninety-five cents?’ No.
This is a program that’s going to cost you zero dollars. And I hope that you’ll join me, and a group of other experts and guests, as we discuss how to build your financial future. Seriously, you need to sign up for this right now, because this program is going to be awesome. .
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