Things We Wished We Knew Before Retirement
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Well it's great to be with you all again it's
another video day for us – It is – So things that we wish we knew before we retired almost
sounds like a country music song there Tina – And I guess you must be feeling lucky
today Norm – Oh yeah got my lucky shirt on so because we're filming been to
Costco – Got the great deals haven't we – We have so one of the things that we wish we knew
before we retired was how free it is how stress free no longer having to get up and go through the
morning ritual of preparing yourself to go to work and being accountable to somebody else all
day long it's wonderful to be accountable to your own self and your partner that's it
you're your own person and it's such a freeing feeling and we saw that with Tina when she gave
up work the amount of stress we hadn't realized until a few years after retirement just how
different she was she'd lost all that stress of meeting quotas and all that good stuff – And I think
I'll just add Norm that when you're actually doing the job you actually don't think it is stressful
you don't think you are under all this stress until you stop it do something else and
you think wow this is a lot better we like this it's great so just being accountable to ourselves
we love it don't we – It is totally life changing – One thing that we do think is very important
before you retire is you do need to have a discussion with your partner as to what it is
that the ideas that you're both thinking you have when you're going to retire you do need to
have some goals about, do you want to travel do you want to garden or do hobbies do you want
to stay home you really do need to have that conversation to make sure you're both on the
same page – I think it is it is important and we hear a lot from some comments especially
married women who are saying that their husband their frightened the husband will get under their feet
because he'll be hanging around all the time in retirement but that really isn't the case – Not
for us is it – We've been secure as a couple for the longest time and retirement hasn't changed
how we feel about each other and about what our expectations of each other is it's not as if
we've all of a sudden being locked up together in retirement (no) so it is important to figure out
what you both want out of retirement and to have that discussion a few years before you actually
do retire (yeah) one thing to bear in mind is the first few years of your retirement you'll
be your most healthy so just use that health and strength that you do have in the early years
to achieve some of the goals that you want – Yeah and if you want to be traveling do it while
you've got that – Don't think about traveling if that's on your list just do it right away – Yeah
absolutely and that's what we've done isn't it when we retired we just traveled everywhere
didn't we it was great – About two years before we retired we had an inspector come to the house
for I don't even remember what it was but it was some form of home inspection that we had to and
so we got chatting with him because he was a few years older than us but not that much and he told
us that he had a house very similar to ours that he had sold and now he was living an apartment
and he went through the whole process of them and how they moved to the apartment and how
it was such an improvement on their life and it was something we'd never ever considered
– This was big news to us wasn't it we never even thought about renting an apartment – We had been
homeowners since we were 19 years old so to rent we had that preconceived idea that it was throwing
money away but the more that we looked into it so after he left the next couple of days we spent
many hours thinking about this we did a budget of how much it cost to keep our mortgage free
home – Yeah crunched all the numbers – And what the rent would be and if we had sold the house and it
made more and more sense to us to sell the house to downsize into an apartment bank the money
from the house live off that as an investment and that's what we did – And that's what we did didn't
we – But had that guy not come to our house we might never have come up with that idea – No because
originally we had thought that we would just buy a smaller house didn't we – That's right yeah
– So part of our decision when we had actually now decided that we were going to rent and we realized
that would take care of we wouldn't have all this maintenance and stuff like that to do we decided
after we started looking at apartments that if we moved to a cheaper area could we benefit by
getting the same as what we wanted in an apartment but would it cost us less money so the more
we looked into it we did have a family member who lived in a cheaper place so we looked
at the equivalent of renting an apartment in this new place and it was so much cheaper
wasn't it Norm – Because we initially thought we would just sell our house and stay in
the same area so we started shopping for apartments to find out how much they cost and the
availability and we were pretty surprised that at the expense of them but we were prepared
to pay that (yeah) and then we came to a what you would call it a small town that's cheaper
(yeah) we came to visit a family member here and so we started looking around at the apartments here
and they were substantially cheaper about $800 a month cheaper than where we were initially going
to – Yeah and not only that Norm there was a lot of extras with it wasn't that we got there was
underground parking and what else a swimming pool – And laundry facilities in the apartment – And that
was one thing the gentleman had told us he didn't have on-suite laundry he had it in a laundry room
so we wanted that – But coming to the cheaper town it wasn't just the rents that were
cheaper everything was cheaper the Tina's hairdresser as we've
said in the past was cheaper it just permeated everything so our budget became
so attainable (yeah) by moving – That gave us a lot more money to be able to travel didn't it because
we thought if we can save money on a daily basis and it worked perfect didn't it – It did it was
great, take a look at that if you do have family that live in an area that might be cheaper or
just consider going not knowing anybody – No it's like a new adventure isn't it a new chapter in
your life because we've made friends here and they don't have any family just here but they've
made it a new place for them haven't they – A lot of people have moved out of the big cities to a
small town because it's it's far more conducive to retirement (yes) and friendlier another
thing that you really need to consider is where your friends are going to come from
in retirement because once you leave work those friendships tend to wither away because
the only common bond you have was your job your workplace so we've never
really had lasting friendships from work colleagues they've always been outside
of there so it's it's critically important to continue looking for friendships in retirement
and being outgoing and prepared to speak to people Tina when we moved to this apartment building
they did have a social room and they did a coffee morning and so she would go down there and we
found out so much information about the town and businesses to use – It was great wasn't it – It was – It
was kind of my mission wasn't it to find out new information and to try and make new friends
which we did and we made some fabulous friendships – Well in particular there was one couple that Tina
made struck up a friendship with and they in turn have introduced us to another couple yeah and then
they in turn have introduced us to another couple so that's how it goes – Yeah so now we've got
a group of really close nice friends that we socialize with don't we – And the thing that we have
in common isn't an employer it's being retired – It is isn't it – It really is so don't be afraid
of striking out to a new city a new town because it's relatively easy to make friendships
– Yeah you just have to push yourself out there a little don't you and be confident to going to
things and it's very exciting isn't it so we hope that everybody is staying safe – And keeping
well – Until the next time bye bye, bye bye
Retirement Planning From a CFP® Professional: 6 Keys to a Happy and Successful Retirement
user 0 Comments Retire Wealthy Tips for Retiree's
sometimes I feel like I've lived through my 60s and 70s thousands of times sitting with people in retirement or those that are entering retirement we come across a lot of the same fears negative thoughts and feelings that really hold people back from having a happier retirement now we try to address those through retirement strategy and implementing plans but in today's video instead of talking about strategy I want to talk to you about how we look at retirement so you can hopefully look at retirement through a different lens and I believe this will help you have a happier retirement foreign [Music] Happy Gilmore recently and there's this place that he goes to and he calls it his happy place and if you remember the movie the lead actress she's sitting there by like a fountain of beer with pictures and Happy's grandmothers there and it's just his happy place and this helps Happy Gilmore putt a little bit better to find your happy place in retirement I want you to shift your focus away from simply trying to maximize return in retirement it's not about growing Your Nest Egg anymore what we want to do is have an acceptable level of risk something that when the market goes down we can still stay invested we can stay committed to that plan but at the same time for that level of risk we have an expected return that can help make sure that you don't run out of money and generate enough growth to provide the income that you need to maintain your standard of living so here is one of the tools that we use to help understand your willingness to take risk so risk tolerance really has two components it has a capacity component meaning given a certain level of income that you desire from your portfolio can your portfolio withstand a certain level of risk and still provide that income so that's what we call risk capacity but then you have your willingness to stay invested in a down market so when we look here this is a standard 60 40 portfolio 600 000 stocks 400 000 in bonds has a risk number on a scale of 1 to 99 of 54.
now in isolation that means absolutely nothing to you but when we start to break it down into percentages and also or I should say more importantly dollars over a six month period your standard 60 40 portfolio has the potential to lose a hundred thousand dollars with a million invested this is a statistical quantitative analysis of volatility of this portfolio going back many years now over a 12-month period that means you could lose two hundred and twelve thousand dollars mathematically speaking is that a comfortable level of risk for you if you have a million dollars it's not for me to answer that's for you to answer that's your willingness to take risk so over a 12-month period mathematically you should expect to lose at some point in time up to twenty percent you could lose more of course this is a 95 probability or what we call two standard deviations but we have what we want to achieve here is a more optimal level of risk for an expected return so we have asymmetry here where the possible upside mathematically speaking is 15.92 percent over a six month period so we do have some asymmetry here but when we look a little bit deeper the annual range midpoint is 5.27 so this would be the expected return kind of moving forward with a two percent dividend this GPA this is a pretty cool feature of this software it's designed to help you understand what we call risk adjusted returns and this is this concept is kind of what I'm talking about here they've developed this GPA and a 4.3 would be most Optimum now not every portfolio that fits your particular needs is going to be a 4.3 we're not necessarily trying to achieve that but the higher we can get to that it means we have more expected return for the For Less risk so the question really becomes are you comfortable with this range of expected outcome if not this is too aggressive of a portfolio for you but instead of just focusing on like most people do the upside we need to focus more on this downside in having a plan that is optimized or having an investment strategy that's optimized for your happy place number two I want you to start to look at all of your investment choices in retirement for what they actually are now this is much different than in the accumulation phase in the retirement phase your financial investments all the various choices out there they're really nothing more than tools tools that are used to accomplish a certain objective similar to ingredients in a recipe if you have too much sugar or too much salt or not enough herbs or spices is it may not come out the way you want it to taste we want to use the appropriate tools to accomplish the objectives that you have in retirement stocks for example they aren't used to accumulate anymore stocks are designed to help keep you ahead of inflation so you can generate income that lasts as long as you do now in the accumulation phase that's exactly what stocks are designed to do they're designed to give you the best opportunity historically speaking to accumulate a larger and larger Nest Egg of course that assumes that you save enough money but in retirement you are no longer accumulating you are Distributing so stocks are used to help keep you ahead of inflation now the downside to stocks you could lose a lot of money especially if you get too aggressive or if you invest in things that don't perform well now does that make stocks bad because you could lose a whole bunch of money no they're just a tool and once you understand how to use that tool in conjunction with other tools now you can actually construct whatever project that you're building or have a retirement plan that provides you the income you need to maintain your standard of living the number three key for a happier retirement I want you to accept that you're in the distribution phase don't expect your accounts to continue to grow each and every single year this may seem like common sense but in reality and in practice it's much harder for many people to do now you've seen your accounts hopefully grow grow grow you've been putting money in the market has performed well over most years in the past even when the market performed poorly you are still putting money into your 401k getting that match hopefully saving money elsewhere now that you're in the retirement phase you're putting a lot of stress on your portfolio through distributions now I'm not saying your accounts can't still continue to accumulate especially if we have consecutive years in the market that that does really really well but what I'm saying is don't expect it you are in the distribution phase that means you're probably taking three percent four percent five percent out when we have years where the market is also down your portfolio is down you're digging a bigger hole than you were in the accumulation phase that means that hole is harder and harder to climb out of this is why the allocation of your Investments is so important and not taking too much risk you don't want to dig such a big hole that you can never get out but at the same time you need a certain level of risk to achieve a return that can give you a Secure Retirement so mentally let's not look at our accounts every single year and say oh man they're not going up they're not increasing in value I'm going to run out I need to stop spending my money now actually if you look at it appropriately you should not expect your accounts to continue to appreciate every single year in retirement that very May well happen but if it doesn't if you're just staying level or even going down a little bit it's okay you just need to have a plan monitor your progress with respect to your goals and stay on top of it number four I want you to understand the value of secure income in retirement the more secure income you have the less you have to withdraw from your portfolio and the less emotionally you're impacted by the stock market ups and downs by political goings on by economic slow Downs if you don't have to withdraw large percentages from your Investments because you're living on passive income from Real Estate from Social Security from annuities from a pension but the point is the more income you have coming in from multiple different places that is independent of the stock market going up typically the happier you'll be in retirement also I don't want you to underestimate the power of Social Security as part of your overall retirement income plan now I hear a lot of people making comments on some of the Social Security videos that we do and also just day to day having conversations with clients that Social Security seems to be an extremely underestimated part of retirement many people want to take it early and that may be the case maybe it makes sense for you to take it early but if a husband and wife have combined Social Security of 60 000 a year and you live let's say 25 years that's 600 000 1.2 1.5 million dollars of retirement income and for many of you watch watching this your Social Security is going to be a lot more than sixty thousand dollars per year so we're talking anywhere from one million to possibly over three million dollars of retirement income for a married couple for someone who's single Social Security you can just basically cut that in half so it's a significant part don't underestimate the power of secure sources of income in retirement and also don't underestimate how valuable deferring Social Security could potentially be if you're going to live past age 80 81 or so number five I would like you to stop looking at short-term outcomes whether your portfolio is up or down whether you pull too much out whether you had an unforeseen expense and you had to spend x amount of dollars I'd like you to start looking at these short-term outcomes of things that happen to you or decisions that you've made as nothing more than bumps in the road don't get too high don't get too low retirement is a very long and windy and arduous Journey this is why it's so important to have a plan and stay connected to that because when you have visibility into the future and you're looking at things not in the short term lens but over a 20 25 30 year time frame you can see a lot of times how actually unimportant these short-term events are so don't get too high don't get too low understand that these are bumps in the road in the short term but if you have a plan these bumps in the road have been accounted for next time the Market's down and your portfolio is down 10 or 12 or 15 or more say you know what I have a plan I expected this to happen this is not a surprise and retirement is a very long journey this is nothing more than a bump in the road the number six key to a happier retirement and I know this is going to be virtually impossible for many of you watching but the number six key probably the number one is to not look at your accounts more than once a month I would prefer it once a quarter so I know some of you right now are saying Troy that's impossible I look at it every single day I need to know what my stocks are doing what my accounts are doing how am I ever going to know if I'm going to be okay well there are numerous studies on this I encourage you to look some of them up the more frequently you look at your accounts typically the worst performance you'll have over long periods of time but the person who looks at it every single day over a long period of time I think it's 25 or 30 years averages somewhere around two to three percent per year the person who looks at it once a month averages somewhere around four to five the person who looks at it once a year averages somewhere around six to seven and the person who never looks at it has averaged around 10 or 11 percent and it makes sense because we are emotional beings when we see that something isn't going right we want to Tinker we want to make adjustments this typically leads to holding on to bad Investments maybe a little bit too long or getting rid of good Investments that just haven't really had the Catalyst that maybe you were expecting and selling them too soon or we're selling our winners and cutting our losers without giving them a chance to really perform well whatever the situation may be Studies have proven this over and over again the more frequently you look at your portfolio the worse you should expect to do so instead of discussing strategy and execution in today's video hopefully today's content helps shift your perspective just a little bit with the goal of helping you to have a happier retirement [Music] foreign [Music]
Read MoreHow to Transfer Retirement Funds into a Gold IRA and Silver IRA
user 0 Comments Gold IRA Rollover Retire Wealthy
the function of this video is to explain the conceptual procedure of just how to transfer your existing retired life funds into a physical metals IRA in order to do this keep in mind there are four unique entities with an usual objective to assist you with the service for having physical valuable steels in your IRA these four entities are the pieces of the puzzle which will certainly be working jointly to aid you put physical gold and silver in your IRA so please take a great note of this representation your very first action will be to speak to the individual retirement account custodian gold silver calm deals for specialized rare-earth element individual retirement account custodians you can select from merely most likely to exactly how it works from the major menu of our web site and after that select the IRA area to watch the custodian alternatives we provide please note since we can not make suggestions for you we do ask that you put in the time to do your own due persistance before selecting your IRA custodian the IRA custodian is the company who will certainly assist you with any one of your IRA relevant questions and based on the kind of retirement plan you have they can offer you with the proper types you will certainly require to send to get the round moving on so you can get a brand-new IRA account number and fund that new account once you have a physical metal IRA account and have actually moneyed that account then you can continue to tip 2 your next step will certainly be to contact your precious metals dealership and hopefully that will be gold silver calmness put simply the dealership will certainly assist you to purchase and or market your steels at a later day and ship those steels to the appropriate destination the easiest component regarding this action is that you will be able to position your order over the phone and your credit scores card is not needed if you are unsure what to buy then your representative will talk via and talk about certifying concerns to take into consideration to aid you assess what to purchase as soon as you'' re prepared and with your authorization to carry out the order your gold silver representative will enter your order in your place and lock in the rate at that moment this actually takes minutes to do in enhancement we will certainly additionally attempt to look for payment from your IRA custodian to pay for the billing of your freshly placed our order lastly we the dealer will ship your order to the depository the vault is the safe storage location of where your IRA holdings will certainly be kept you will not need to contact the vault straight since the dealership is liable to obtain the order to its proper location so once again here'' s the larger image of the sequence of events for you to follow and ideally this tutorial offers you with a much better point of view of exactly how you can start to buy physical silver and gold in your IRA you
Read MoreZERO Savings at 50? Plan for Retirement NOW 💰
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What are we doing here? What's going on?
>>What are we doing here? >>This is a super-simple game. We're fishing for advice. Give me that.
>>See, I chose the right outfit today.
Yeah. [Fishing for Advice With Financial Advisers] I know you guys are probably thinking
I'm a professional fisherman, but I'm not. I'm a financial coach.
You are 50 years old and have not started
saving for retirement. What is the first thing you do? Panic! No, I'm just kidding. So, at 50 years old, that is a big
wake-up call for a lot of people, and the very first thing you do is take stock of where your money is going today, because
you are gonna need to seriously amp up your saving. So, not everybody needs to
have some giant savings. You need to have enough to replace the amount of income
you're gonna spend in retirement.
I'm gonna just cheat a little, because I'm
really embarrassed. So I would just take a minute to assess my full
financial picture and actually sit down with the numbers to take financial
inventory. So I think step 1 is just going through what are all the
accounts I have, what is everything I own, what's the value of everything I own, and
then making another list of everything that I owe.
And then from there you can
be like, "OK, well, this is the money that I actually do have, and so maybe there's a
better way for me to maximize this for my retirement." I feel like 50 is the new 20 or
30, you know, still not too late. Yeah, don't think that it's over.
Consider it like a halftime. This is where you go
into the locker room and you look at what you did in the first half and what
can be done better for the second half. You come up with a new strategy, a new game plan, and then you go out into the second half,
and you prepare to win the game. [Cheering] I have to say this is the weirdest game
I've ever played at a FinCon. You're 50 years old — I am 50 years old — and
have not started saving for retirement. What's the first thing you do? You breathe, and you don't panic, and you start now. What you should not do is
think, "Well, it's too late now, so let's just see what happens in the next 20, 30
years." Because that is going to lead to disaster.
You still have time to turn this around,
but you have to get serious about this now. So you would talk to a
financial planner, come up with a game plan of how you can reduce your spending,
how you could put extra money into savings, and how you can kind of catch up. Once you've found the money, you are gonna automate the flows into those IRAs and 401(k)s, because if you don't automate it, you're gonna force
yourself to go through this exercise again and again, but if you set it and
forget it, you will continue to make headway. All right, here we go. It’s why I got this net, man. The first thing I want you to do, I want you to take positive action.
I want you to look around this minute, right now, and make a decision on some things you're gonna change. And it might be your attitude, it might be
the way that you're spending money, it might be the way that you're even looking at money. Be positive.
You know, it's not over till it's over. You can do it, you just have to start
doing it right now. Whoops! All right, everyone, listen. Gaining
information is absolutely imperative. It keeps you aware and it keeps you motivated. So be sure to subscribe to AARP's YouTube channel. OK, come on. All right. I'm just gonna pick these
fish up. OK! [Laughter].
This is how much you need for retirement to live the life ‘you’re hoping for’ #shorts
user 0 Comments Retire Wealthy Tips for Retiree's
it isn't a dollar amount that can seem daunting the last thing you want to do is put out a dollar amount that's going to be discouraging you want to put out guidance at least Fidelity wants to put out guidance that's going to encourage people to save for retirement so the fact that this is based on variables that people understand and the fact that it's not based on dollars we feel that that's why it's much more easy for a lot of retirement Savers to grasp and hopefully will be a good guy for people as they save and and approach their retirement age there's two things that we really encourage people to do when it comes to retirement savings take a long-term approach saving for retirement is a marathon not a Sprint and try to have a plan in place
Read MoreWhat Rate Of Return Should I Use For Retirement Planning
user 0 Comments Retire Wealthy Tips for Retiree's
welcome to today's video what rate of return should I be using for retirement planning this is really key we want to get this number right so that we don't have to continue to invest even longer by the end of this video you will have the knowledge you need in order to determine the rate of return you should be using for retirement planning so let's Dive Right In [Music] all right I'm going to go over the different factors to consider when you are determining your rate of return for retirement planning and I'm even going to share the rate that I personally use not only that I'm going to show you a calculator so that you can see the difference in using a lower rate versus a higher rate all right the first thing we want to consider when we are determining our rate of return to use during retirement planning is what we are invested in if we are invested in stocks that is going to give us a higher return and if we are invested in bonds that is going to give us a lower return so this is really critical when you are determining your rate of return number a lot of people will just say oh use 10 rate of return but if you're investing all in bonds there is no way you're going to get a 10 rate of return so this is a really critical factor to consider when you're determining that rate and we also want to factor in inflation I know that recently we have seen really high rates of inflation nation and other years have been a lot lower so we want to take this into consideration when we are determining our rate of return for our retirement planning we also want to consider our time Horizon how long are we going to be investing before we actually retire is it going to be five years is it going to be 30 years we want to know exactly how long that time Horizon is because that's going to make a difference on our rate of return if we are investing for a longer amount of time then we're able to take on more risk and get that higher return but if it is a short amount of time we are investing and we decide to be super risky our investments could drop within that short amount of time and that would mean our rate of return would also drop and we also want to be aware of market conditions if we are investing during a bull market we are going to see really really high returns if we are investing during a bear Market we are going to see lower returns and this kind of goes along with the time Horizon because if we have that longer time Horizon we're going to be able to go through a bull market and a bear market and another bull market and another bear market and be just fine but if we have that shorter time Horizon we may only be in the bull market or the bear market so we want to be aware of that so now that we know what factors to take into consideration in order to determine our rate of return what rate of return should we be using if we are just investing in stocks then the average return for the stock market has been 10 but we don't want to just use 10 for our rate of return we want to take into account inflation so on average I know recently it's been a lot higher but on average it's a three percent inflation rate so we can take that 10 and subtract out that three percent and use a seven percent return but we want to make sure that we are investing only in stocks if we have half in stocks and half in bonds that seven percent return is not going to work for us and I feel like a lot of people don't realize that because they don't want to be as risky with their Investments but they have to understand that they are not going to get as high of a return on their investments in order to get that higher rate of return we need to have that higher risk associated with it and that's not just to say oh be super risky with all of your Investments we can still take calculated risks and still see that high return for example if you're putting all of your money into just one company maybe you're putting all of your money into Amazon that is going to be super risky we want to make sure that we have diversification within our investments even if we just choose to invest in only stocks we can do a stock fund which has a whole bunch of stocks or companies inside of that one single fund so we're still Diversified but we're still being risky because we are only investing in that stock fund so we can still expect to see that higher rate of return and this is what I do I have the majority of my money in one certain stock fund and if you want to know which one that is I have another video I'll leave a link above you can check it out later on and then I have a few different individual stocks but I don't just have one stock one company that I have all of my money in that would be too much risk for me personally and then going back to using that seven percent return some are worried that may be too high of a rate of return to use so they want to be more conservative so they might use a five or six percent return so you have to determine where you feel comfortable along with taking into account all of those other factors that I mentioned because if we say oh I'm going to get a 10 return on my money I only have to invest for 10 years and then when you get to that 10 years you did not receive a 10 return then you'll have to invest for an extra amount of time I personally use the seven percent rate of return and I have heard of some others using even 10 because usually really over time when you are progressing in your career you're getting raises so you're actually investing more of your money as you go along and all of these calculators out there allow you to just enter in one certain number or one certain amount you're going to be investing every single month but honestly that could increase over time so a 10 return might feel comfortable to you taking a look at bonds and what they have returned it could be around four to six percent but then we would have to adjust for inflation so taking off three percent of that so it's barely above inflation and I just want to show you the financial samurais blog post about investing a certain percentage in stocks versus bonds because if you are going to invest a certain percentage in stocks and bonds then you can't just use that seven percent return or the three percent return there would need to be a combination so just make sure that you feel comfortable with whichever rate of return you're going to be using because if you are investing a certain percentage in stocks and then a certain percentage in bonds we want to adjust for that so we wouldn't want to be using the full seven percent return it would be a little less if we were putting maybe 80 in stocks and 20 in bonds and of course it is hard to know the exact number to use because we are looking at historical data but that doesn't mean that is what is going to happen in the future for me personally I feel comfortable using that seven percent but you may not feel comfortable doing that especially if you're going to be investing a certain percentage in bonds so come up with the number based on this data that you feel is going to work best for you and if you want help investing in the stock market and determining the number for your rate of return I have a free master class on how I can help you invest in the stock market and figure out all of these little details like your rate of return for your Investments if you're interested in that make sure and click the link below and watch the free free master class and tell me also what rate of return are you going to use and if you found this video helpful please hit that like button and share it with someone else who would like to hear this information and to the Subscribe button to subscribe to my YouTube channel and the little bell to get notified on when I post new videos and if you want to see even more amazing content for me make sure and check out the videos on the side of the screen thanks so much for watching I'll see you in the next video
Read More31 ways to Improve Retirement Planning – Part 1 #SavingForRetirement
user 0 Comments Retire Wealthy Tips for Retiree's
It is always a great idea to commence a new year
on the positive note. As I said in my previous video "Proposed Changes in 2022" I really want all of us to have this New Year 2022
one of the best years ever, financially, emotionally, spiritually, and physically,
but all those components work together. I know from experience that if my finances are not in order,
if I feel financially drained and insecure, there is no way I will feel
emotionally happy, fulfilled and satisfied. So whether we like it or not, money plays a big part
in our lives and in our well-being, not to mention our choices and abilities
to do something good and positive in the world.
So as I said, I really want to start this New 2022 Year on a positive note,
and what is a better way than going over steps how you can improve your retirement planning
or any financial planning for that matter. Originally this video started with only 9 steps,
but once I started thinking about it, all those ideas and suggestions came
rushing through my head and I thought well, what a great way to slowly improve step-by-step
your planning system. Some of those listed ideas, I have already covered in parts
in my previous videos, so I will link them all for you, others might be just short information, but some could be
a totally new idea for a completely new video. So today our topic is:
"31 ways how you can improve your retirement planning" or as I said before any financial planning
regardless of your stage of life.
As the number has grown from 9 to 31, I will divide this list
between two videos not to make this one too long, so please return next week for part two of today's video… My name is Katherine Isbrandt from About Retirement,
I'm a Certified Financial Planner, and you are watching About Retirement TV,
just about the only place that you can find all the information and ideas how to be well prepared for your retirement or how to improve your retirement, income, assets,
and lifestyle if you have already retired. So as I said before, today I will cover 15 steps
you can take to improve your retirement planning, and next week I will cover the other 16 steps. 1.
Save enough
– have a plan for the future with a defined strategy this is most likely their most important information
in your planning you really have to have a starting point to know
what you are striving for, what type of assets, and what value you need to accumulate by the time
you plan to retire. Nothing is set in stone but you need to make a solid start
and a very good starting point are my videos: How much do I need to retire" and
"What Income is Needed in Retirement". 2. Understand your longevity and do not underestimate how long you are going to live This is most likely the biggest worry for most retirees with many thinking of ways how you can make
your money works harder. If you believe that at the age of 90 you will need a lower income
or lower asset base, well think again. Just watch this video "How long will you live in retirement".
This is one of my older videos, so please be gentle As I had no video presenting experience, but the
information is still valid and current as of today. 3. Believe that it is never too late to start planning or saving. Some might think that once you retire there is nothing you can do
to improve your retirement income and to make your money last longer.
Well, this is an incorrect assumption. Unless you have no assets saved at all,
your situation can always be improved. I have a whole series of videos related to Age Pension and how you can improve the government benefit or organise your income streams
to provide you with a secure income for life. Feel free to binge-watch the whole series of 14 videos
devoted to this subject Age Pension and your retirement 4.
Make your decisions rationally and not based on your emotions Money is an emotional topic.
We might believe that all our decisions are made rationally and well thought through but, let's be honest,
whatever decision you make you can always justify it. And justification comes from the
emotional state of needing to prove to yourself and everybody around you, that your decision is
right, even if deep down you know it's not really. Good planning and sticking to set steps defined
in your plan can help to remove the emotional distress, and allow you to make your decision
calmer and to your actual financial benefit. If you are unable to remove your emotions from
your financial decisions just please admit this to yourself and ask for professional assistance to manage your money,
organise your plan, and check your progress. You are always involved in
the decision process but the emotional drama can be taken away and the financial planner can
cool down your nerves, by removing any uncertainties, by explaining issues providing you with information research
that will rationally support your decisions.
That can bring you a great deal of peace of mind while improving your investment portfolio
performance at the same time. 5. Prioritise your own needs and your own retirement
before helping your children to build their wealth. Unfortunately, I see this all the time when parents sacrifice their own lifestyle,
their own level of savings, and assets in order to help their kids to buy their first home faster,
to pay off their university loans immediately, to have a fabulous wedding. Well, if
you have sufficient assets to look after yourself and help your kids at the same time, absolutely, do
that, congratulation you have done very very well. But if you do this out of parental love, guilt,
obligation, shame, scarcity, or you are being forced to do it. because the other parents are paying for the wedding,
the other parents are helping with home deposit, and you feel obligated to do the same.
Well, I respectfully disagree you have done your duty as a parent, you have raised your kids to be
a respectful and responsible members of the society, you have supported them throughout their
childhood and their young adulthood.
Now it is their turn to take their responsibility and
create their own lives and their own mistakes You are always there to support them, but you also need to make sure
that you are in a position to look after yourself for as long as you are alive,
because well nobody will come to your rescue. So it bothers me when I see parents giving
their savings away to kids to help them only later to end up on Social Security check
of Age Pension with very little savings left, so they can hardly get by in their retirement. 6. Don't leave money in a bank Well, this one is the most common mistake people make. If you sold an asset and you park your money in cash,
as it will be needed for your next purchase that's what cash is for. Short-term holding. Another reason to have funds in a bank in cash, it is for your "rainy day and security account" as an emergency fund.
But most people who keep majority of their savings in cash in the bank,
do this due to fear. So we are going back to the
previous issue discussed in No.4 decisions need to be made rationally
and not based on your emotional state. There are so many negatives of keeping too much money in cash
and I would need to prepare a separate video to go through all those reasons, so we will return
to this topic again in one of my future videos. 7. Don't carry too much debt into retirement, especially high-interest debt Well, life is life, sometimes there are reasons why
you would still have debt outstanding when retired. When assisting clients, we do try to have all that's paid off before the big day of retirement arrives
but sometimes it is not possible. If this is the case, then we try to find another option
to assist clients with the level of income, as whatever repayments you need to meet,
they will reduce your income dramatically But one of the worst debts you could have in
retirement or actually any other period of your life, is a credit card debt or any high-interest debt, such as personal loans,
store loans, all those fast loans facilities advertised constantly on TV that
supposedly can be approved within 5 minutes. Nothing, and I mean nothing is as urgent to buy to even consider those loans
as some of them carry interest as close as 50%.
But most people don't really bother checking agreements all they want is that new TV, that new phone, or another holiday. Just watch my video: "How Banks keep you poor – shocking truth" and you will be blown away
by my calculations and my findings 8. Don't retire too early
Early retirement means early spending on their savings. If you do this then you might run out of money
while you are still very healthy and full of energy.
You might not have enough savings to pay for your medical care
at the time when you are much older. So please speak with a financial
planner or financial advisor that can assist you to figure out when is the most beneficial
time for you to commence your retirement. 9. Invest well in growth assets. Yes many people in retirement are far too
conservative with their investing, which in most cases comes again from fear and
lack of understanding of investment choices but a good advice can go a very long way
to improve not only your ongoing retirement income but the value of your assets
backing you up for the remainder of your retirement, or as your legacy you wish to
leave behind for your beneficiaries either to your partner to your children or any other person
or organization you wish to leave your estate too I have created a video:
"Investing for Income and Growth in Retirement" that explains the benefits of investing into growth assets but as this topic has been requested by many,
I will create new videos about different forms of investing. 10.
Do not chop and change your investment strategy This is a sure way of constantly losing money,
when people are trying to keep changing their investments based on some information heard on
the radio, or on TV, read in the paper or heard from a neighbour. Investing based on such advice is a sure
way to keep losing money it is not based on any solid information, it is not based on any research that you might have done. So please stay away from, keep on
jumping from investment to investment you really need to create an appropriate strategy for your needs,
stick to it, but with annual or even semi-annual reviews. 11. Do not participate in panic withdrawals Oh my god don't even get me started on this one.
This is common knowledge. I'm sure every single person listening to me right now
will agree with me and yet every year, I see the same mistakes being made.
I meet many people who are telling me how much money they lost, for example during GFC Global Financial Crisis
that happened between 2007 and 2009 or the recent drop in March 2020 due to COVID.t Those people blame the economy, the market, but the truth of the matter is that once the market drops,
it is too late to sell any investments. Whoever patiently waited for the market recovery,
got their money back and more.
It took two years after GFC for the market to recover
and it took only a couple of months after COVID crash. Nobody likes market crashes and volatility
but it is part of investing and you need to accept it if you want to see any capital growth of your savings. If you are a person that panics when markets are uncertain you really need professional service to
help you with your investments and how to deal emotionally with those market changes
and that's where a good financial planner can assist. 12. Don't try to chase historical performance.
Don't invest into last year winners most likely this asset or this fund manager
will not be a winner in the following year. Markets are alive, they change daily, there are
many forces that impact performance of assets in one year and decline in the year after.
If you keep on trying to switch between last year winners your transaction cost will skyrocket
and you will keep on paying the highest price to buy new investments. This is a sure way to be going backwards
with your performance of your retirement savings 13. Stay away from timing the market.
It is not about timing the market but rather about time in the market
that will bring you financial benefit. Research shows that those investors that stay invested over long term
in a well-diversified portfolio will be better off than those trying to guess the market
and trying to benefit from market movements. When we start talking about shares as I promised,
I will go much deeper into explanation of this topic 14. Diversify, Diversify, Diversify.. Investment diversification is most likely
one of the most important aspects of your investing and it will have the biggest impact on your overall asset security meaning investment risk and
your portfolio performance and your portfolio of volatility Have you read my eBook "12 Principles of Investing"?
Well if not, I highly recommend for you to download it and read it cover to cover.
Diversification is most certainly one of those principles and it is well explained so hopefully
it will help you in building your investment portfolio and while you are visiting my website
AboutRetirement.com.au to download this eBook feel free to sign up to my newsletter that will
provide you with all the details you need to be up to date with all financial data that can impact your retirement.
15. Always include fun in your budget I want to leave today on the happy note, and I believe that as much as it is very important
to be a financially responsible person we cannot forget that life is meant to be happy, enjoyable, with lots of fantastic memories that
we create over our lifetime, that we can return to at the time when we feel blue or nostalgic. So don't forget to allow in your budget for some fun whether that is your holiday, subscription to
things that you love doing such as for example: attending Opera shows or Theatre, or some kind
of hobby maybe like me, you love photography, or coin collection. Or maybe just simply you enjoy
going out with your family and your friends. So please include some fun in your budget
so you don't feel guilty spending money because you've done your budget and you know
exactly that you can afford it and you don't have to justify your spendings either. Here there are 15 ways to improve your retirement planning or financial planning at any stage of your life. If you enjoyed this video please LIKE IT, If you found it informative please SHARE IT with your
family, with your friends, I'm sure that they could benefit from this
information just as much as you do.
And please don't forget to SUBSCRIBE to this channel as well. Next week we will continue discussing further 16 ways
to improve your financial planning journey I wonder if you can come up with few suggestions yourself. Please let me know in the description below this video
what would you think are important ways to improve your retirement planning?
Please share your ideas with us. And now I want to invite you to watch some of
today's mentioned videos: the first one, “How much do I need to retire” very important information if you are planning your retirement soon. The second is the series of retirement income
videos: Age Pension & Your Retirement So feel free to jump onto those recommended videos and I will be speaking with you soon. See you then.
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