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My Complete Early Retirement Plan | Mr. Money Mustache | FIRE Movement | Part 1

everybody Dave here in free investing in this first part of this two-part series we're gonna talk about early retirement planning and I'm two years in the early retirement planning and I made significant progress but there's still quite a bit of work left to do so in this first video of this series we're going to talk about where my accounts stand today and kind of the income I get from that and where my will Network stands and all that and kind of where the net worth needs to go and then the second part which I'll release next Saturday is where I want the counts to be post-fire and the ultimate goal with that let's go ahead and dig in so what we're looking at here is something I set up about six years ago after reading a mister money mustache article if you're not familiar with mister money mustache he's you know kind of you know I wouldn't say he's the first but he's definitely a person that made fire kind of a popular term and you know I mean he just really helped a lot of people but he helped me too because I was sitting in a hotel room for literally six months out of the year up and bfv buck Egypt right so essentially when I was sitting in that hotel room I was thinking about okay I want to hike the 80 well that requires me to take about four or five months off of work which theoretically means that I probably need to quit work so I was kind of looking at a way to do that and that's when I found mister money mustache and that's when I came across the 4% rule which is based off the Trinity study you take your you know annual expenses that you have to live and you know you times it by 25 that comes out with how much money you need to retire so you know I got at the top here the $30,000 was the 35 40 45 4855 those are just numbers that came up with I thought would be pretty good to retire on in 25 is the general rule for the Trinity study you know you would draw four percent and it should last you in at least 25 years theoretically probably make it last a lifetime but you know that rule in my opinion is a little old a little outdated back when that was instituted it was kind of I want to say that they're working on the interest rates were super-high back then like I don't think 8% or something like that so there's a lot more viable in my opinion so I came up with you know being another probably gonna be about 46 47 when I retire I came up with just I'm gonna go ahead and do the 3.5% withdrawal rate which gives me 29 X 29 years and then I kind of just bolded those numbers there across the board originally I came up with 1.25 was going be the number and then I upped it at one point three five and then later changed it to one point five and that's just the thing that you have NIP running into when you get close to your number or even surpass your number you start thinking okay what's another year what's another year and I hope I don't play that game going forward but so right now the things that are highlighted in yellow here are things that well I guess I haven't really achieved that one or that one so what it was originally was the number that I already achieved so I just put in there okay it gives me the three percent and thirty three percent in the thirty-five but I have not achieved at one point four eight five yet so I should probably take that out but but I do plan on you know we'll look in the numbers here in a minute but I do plan on you know going to one point five two possibly into one point six five so that's the reason why I probably set these the yellow originally so I probably even set that one a o if you're enjoying my content please like and subscribe and hit that Bell notification alright we are looking a snapshot of my current state as of June 18th alright I have all my accounts there and I have the value in each one of those accounts and then you know that no percent of net worth and the income by account and then yield by a count so as it sits today June 18th there's one point three six million in all these accounts so that is and we're over my original number that I wanted to fire on and like I said a lot of this depends on the customer I've set it in other videos a lot of attend them that depends on the the customer and when they want me to this last project so not to mention we are still in a pandemic and right on the you know I would say the up slide up slope of the recession so it kind of makes sense to just help hold out for another year or two and that's what we're planning on doing so right now there's 401 K accounts 228 k in there the CRA is a company retirement account that's what that stands for that's new part of the solo 401k trust that's in the dividend Schwab account what you've seen me to do a lot of videos on my dividend portfolio here so we're going to be building that out here and we'll talk about that in a minute let me see Sola form with Kate trust notes I do have two notes in the 401k trust in those notes you know generate about 7.6 percent yield which is pretty good income and I'm probably gonna end up keeping those in there but we'll look at the post you know account where we want things to be in the next few years this is just a snapshot of what things look like right now so HSA I am building that out I wish I had an HSA for the last 20 years but unfortunately I didn't and so I'm building that out to $3,500 a year and you know I'm investing that money as well I do plan on contributing into that account once I retire as well so there is you can contribute interest income and contribute dividend income and all that stuff as long as you have a high deductible plan once you retire so I'm hoping I can still build that out and offset some dividends or interest income with that as well so that's kind of good if you don't have an HSA and you are offered an HSA from your work that is one of the best things it's like triple dipping alright so I would highly suggest that you max that out every year if you can I do have a little bit of silver there at about ten thousand dollars in silver and you know the first chance I get to sell about silver about $40 an ounce I am getting out of it but we'll look at that here in a minute so right now that is what I have and silver I do have a Robin Hood account I've pretty much drained a lot of that money out of there and moved it to the TD Ameritrade account mainly just because Robin Hood is just not mature and they really don't report you know P&L what just kind of drove me nuts so I produced during the count left 2000 dollars in there just in case I want to trade some more crypto and my m1 finance I pretty much drained as well that's actually gonna get drained even more and that's gonna go into the dividend portfolio most likely TD Ameritrade account I haven't really done any videos on that but that is where all my spec plays are I have traded carnival in there traded world Bank of America not make America ba I always say Bank of America for be a bowling and I've traded let's see what else have I traded in there Delta and Southwest as well so right now I think those are good spec plays I'm going to go ahead and continue to trade those stocks in my spec account I've already made about $1,500 in that account just in the last couple of months so my Interactive Brokers account I've I haven't really showed me doing any trades in there I've done some covered calls and some cash secured puts and that's pretty much all I do in that account and you know I deal I just want to generate that four percent that twelve hundred dollars a year and I've already way past that this year if I like I think four grand if I'm not mistaken so real estate notes I have done a video on my passive income off those notes and it generates a quite a bit of income $38,000 and I essentially will be draining those out for the dividend portfolio and I've talked about that in previous videos the main reason for doing that is just because I want to reduce my interest income because that is taxed at the ordinary rate so we will be throwing the principal in from you know every every month the principal gets paid back so every month I will put in portion that principal in the dividend portfolio and building that dividend portfolio out so I've been quite a few videos on fund rise right now that counts sits at 16 200 or so sixteen thousand two hundred and you know generates I'd say about 8 percent per years what I've been getting out of it so I don't have any uh plans of getting rid of that account but we'll talk about that in a minute so Lending Club I haven't done any videos on that and shoot I don't know so ten months or so I probably should do a closure video on that I am draining that account out all that cast that's in that account will be going into the fund right of the count you know as I said before we will talk about that in a minute so and lastly here we do have cash in the high-yield savings account I guess that's what it stands for is so high yes I get you guys okay getting out of control now just recently that count was literally 2% drop down to 1.8 and then 1.5 and I just last three weeks it dropped all the way to 1.0 percent which is actually pretty good considering a lot of accounts right now are probably at like 0.3 or 0.03 or something so there are 70,000 dollars in there right now and I'm gonna talk about that in a minute so net worth as it stands right now one point three six and annual income by all these accounts which I call like investment accounts and savings did I include savings in there you know there's no savings in there so that's just annual income from my actual you know what I didand from the notes and from the notes up here a 401 K I've been real conservative and that 401 K accounts up there and I was real conservative a lot of these other accounts too like the options I put it four percent and you know flips I didn't laughter I skipped two flips I do have one hundred seventy three thousand dollars in flips that have turned sideways that's why that house is flipped upside down right there because it's you know real estate flips and you know I need to foreclose in those two houses and we're stuck because the local government shut down all evictions and awful and all foreclosures even though there's nobody living in the house or anything like that it just doesn't matter they said foreclosures across the board or frozen and there's been like that for the last couple months I don't know when they're gonna unfreeze that but right now I got that money just tied up in there and it's just a waste at this point so my right hand side here we do have a current breakdown and let's just make that a little bit smaller here I do have a breakdown of the current net worth allocation you know by pie chart so my biggest income producer is that real estate notes at thirty eight point four percent and you know the real estate flips is a pretty big portion and then the 401k accounts as well so then that's just looking at the pie charts there so let's scroll down a little bit here account type I did break these out up here so if he's noticed let's make that a little bit bigger you notice that that I have a light blue here that's just for retirement accounts in this dark blue is for taxable accounts okay so I broke those out here taxable side of about 1.0 three million dollars and then the tax deferred side for hundred and one thousand dollars at this time and then the income is broken out as well and the reason I have to do that is because I want to know what my income is on the taxable side I don't have any intentions of touching the tax deferred side when I early retire and I need to know that the taxable side is going to support my knees for early retirement it also lets me know that you know what type of income we're gonna have and I need to break that out into dividends and what does ordinary income and/or interest income as well so I can kind of figure out what my taxes are going to be so and that's the yield just in general what's didn't you know coming off this particular income or what this net worth is so the SR is saving slash return and that's just a projection it's a pretty conservative projection on what my actual net worth will increase on a year-over-year period and on a monthly period so I do save quite a bit of income that I make on my nine-to-five not to mention all of this return up here is calculated there as well so that's a rough estimate about one hundred thirty-seven thousand my network should go up in a conservative basis per year so and then here we are looking at the net worth currently and then my goal is one point six five and we're 87 percent to my goal with a remaining amount of two hundred and thirteen thousand dollars and that just seems like it just never goes down so so let's go ahead and look at the conservative net worth projection here and that's based off this number up here and this monthly number here okay so right now in 45 it's twenty twenty-one and it's you know starting to mount with one point three six million and you know I got my lean fire there which would put me in 11 months would put me at a one point five six which we ideally would probably you know get me where I want to be but I'm gonna probably end up pushing it to 2022 which is 22 months out at one point six eight eight in that like I said that's my fire I'm okay with a lean fire and you know ideally just because we're on the upslope of the recession at this point and I don't know when those projects are gonna be done at the customer which I kind of promised I'd stick around for so I kind of pushed it out to 22 months but every time a month takes off as soon as July first kicks off I love to just go in here and set that to ten months and I love to set this to 20 months or 21 months excuse me and watch the numbers kind of just auto-adjust down and all that because that just lets me know I'm getting closer and closer and closer so let's go ahead and reset those back to 11 and 22 and the reason why I have those set out to and not just adjust it off that 11 months there is because the 11 months is my first retirement date and I already passed my first retirement date technically it was for 2020 so that would you know the second retirement was in 2021 but since that one's already passed we have moved it to the first retirement date which is 11 months out so that's the reason why I have those two numbers in there to be Auto adjusted or manually adjusted I should say just because you know I might who knows I might hang it up at 11 months so we'll see where I'm at so and if I stuck it out to 55 years old which I don't see doing some people when they're young could say oh yeah I want to be you know I won't have a B I want to be a billionaire and you know it's like the older you get you start realizing that money it doesn't matter it's all about your time you can't get that time back you're buying time you're trading time for money if you haven't seen my video on the Neil pass richa video that I did watch that video pretty much sums it up okay you're trading time for money the older you get the less you care about money you just need enough money to survive to support your needs of living you know food basic shelter all that beyond that it really doesn't matter as long as you can you know have a one trip a year or something like that that's all the matter stuff doesn't matter at all so you know hanging out to 55 years old on a conservative basis I'd be a 2.78 6,000,000 which likely probably be you know three by that point so I'm not gonna make it to 55 I feel like I'm gonna die today so that's just how I feel just strapped with time working you know Xion hours it's just it's time to enjoy my life and you know all the sacrifices I've made for the last ten years so if you're enjoying my content please like and subscribe and hit that Bell notification let's take a look at the right-hand side here might be your left but this is the current lessee current account income breakdown here and that's just the income broken down so like I said my biggest income is from real estate notes at fifty nine percent and the second would be and the solo 401k trust notes so that's a lot of notes that I have in there and I guess the third one would be the 401k account so it's just this ditz and pretty much this the indexes and emerging markets and all that so alright let's go ahead and scroll back over here and scroll down so I do just put a little gate there and the network's kind of just gives me a little barometer or what are you want to call it speedometer for the network there I'm not in the green the green is set at 1.5 million and I'm close but I'm not quite there I should hit it by the end of this year but let's just say you know it's just a visible visual indicator doesn't mean nothing just for the viewing purposes so let's go ahead and look at this conservative network projection and this goes all the way out to 2030 and that's 55 I don't know why those numbers are so small there but that is 55 years old if I made it to 2030 and don't die before then I would have a roughly about 2.7 million in net worth probably in a conservative basis I was real conservative just because you know four percent I can you know get better return than that most likely but right now we are at 1.3 at one point for 3 which is on 2020 assignment on this chart here but 2022 is what we're looking at would be 47 probably just turned off seven and 1.68 is above my my threshold so we're good to go so so that's it for this video part 2 will come out next Saturday and you know stay tuned for that one if you have any comments questions are concerned on this particular video go ahead and even come a below you know hit me up on Twitter Instagram Facebook and until the next video comes out go ahead and like and subscribe we'll see you the next video thanks for watching

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Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

I want to share an investment system for retirees to hopefully assist you as you're thinking about and planning for your retirement we're also going to look at how to prepare your retirement for the multiple potential potential economic Seasons that we may be headed into so we want to look at the multiple seasons and then the Easy System that's going to help lower taxes and then lower risk as well now if I haven't met you yet I'm Dave zoller and we help people plan for and Implement these retirement strategies really for a select number of people at streamline Financial that's our retirement planning firm but because we can't help everyone we want to share this with you as well so if you like retirement specific videos about one per week be sure to subscribe so in order to create a proper investment plan in system we want to make sure that we build out the retirement income plan first because without the income plan it's much harder to design the right investment strategy it's kind of like without the income plan it's like you're guessing at well 60 40 portfolio sounds good or you know May maybe this amount in the conservative bucket sounds reasonable you already know and and you feel that as you get close to retirement that goal of just more money isn't the the end-all goal that we should really be aiming for for retirement it's more about sustainability and certainty and then really the certainty of income and possibly less risk than before the last 30 years uh the things that you did to be successful with the financial side are going to look different than the next 20 or 30 years now if you need help defining the the income plan a little bit then look at the DIY retirement course below this video now once you do Define your goals for retirement and then the income needed to achieve those goals then creating the investment system becomes a lot easier and within the investment plan we really know that we can only control three things in all three things we actually want to minimize through this investment system the first thing we can minimize or reduce is how much tax you pay when investing we had a a client who was not a client of streamline Financial but of a tax firm coming to the the CPA firm in March to pick up his tax return and he was completely surprised that he had sixty thousand dollars of extra income on his tax return that he had to pay tax on right away before April 15th and it was due to the capital gains being recognized and other distributions within his investment account and he said but I didn't sell anything and the account didn't even go up that much last year and I got to pay tax on it but he was already in the highest tax bracket paying about close to 37 percent on short-term capital gains and dividends and interest so that was an unpleasant surprise and we see it happen more often than it should but this can really be avoided and here's two ways we can control tax so that we don't have to have that happen and really just control tax and pay less of it is the goal and I'll keep this at a high level but it'll get the the point across number one is the kinds of Investments that you own some are maybe funds or ETFs or individual uh equities or things like that the funds and ETFs they could pass on capital gains and and distributions to you each year without you even doing anything without you selling or or buying but it happens within the fund a lot of times now we would use funds and ETFs that are considered tax efficient so that our clients they can decide when to recognize gains rather than letting the fund company decide now the second way is by using a strategy that's called tlh each year there's many many fluctuations or big fluctuations that happen in an investment account and the strategy that we call tlh that allows our clients that's tax loss harvesting it allows them to sell an investment that may be down for part of the year and then move it into a very similar investment right away so that the investment strategy stays the same and they can actually take a write-off on that loss on their taxes that year now there's some rules around this again we're going high level but it offsets uh you know for that one client who are not a client but who had the big sixty thousand dollars of income he could have been offsetting those capital gains by doing tlh or tax loss harvesting that strategy has really saved hundreds and thousands of of dollars for clients over a period of years so on to the next thing that we can control in our investment plan and that's cost this one's easier but many advisors they don't do it because it ends up paying them less now since we're certified financial planner professionals we do follow the fiduciary standard and we're obligated to do what's best for our clients so tell me this if you had two Investments and they had the exact same strategy the same Returns the same risk and the same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times more at point six percent well I know that answer is obvious and we'd go with a lower cost funds if it was all the same low-cost funds and ETFs that's how we can really help reduce the cost or that's how you can help reduce the cost in your investment plan because every basis point or part of a percentage that's saved in cost it's added to your return each year and this adds up to a lot over time now the last thing that we want to minimize and control is risk and we already talked about the flaws of investing solely based on on risk tolerance and when it comes to risk a lot of people think that term risk tolerance you know how much risk can we on a scale of one to ten where are we on the the risk factor but there's another way to look at risk in your investment strategy and like King Solomon we believe that there's a season for everything or like the if it was the bird song There's a season for everything and we also believe that there's four different seasons in investing and depending on what season we're in some Investments perform better than others and the Four Seasons are pull it up right now it's higher than expected inflation which we might be feeling but there's also a season that can be lower than expected or deflation and then there's higher than expected economic growth or lower than expected economic growth and the goal is reduce the risk in investing by making sure that we're prepared for each and every one of those potential Seasons because there are individual asset classes that tend to do well during each one of those seasons and we don't know nobody knows what's really going to happen you know people would would speculate and say oh it's going to be this or this or whatever might happen but we don't know for sure that's why we want to make sure we just have the asset classes in the right spots so that the income plan doesn't get impacted so the investment system combined with the income system clients don't have to worry about the movements in the market because they know they've got enough to weather any potential season I hope this has been helpful for you so far as you're thinking about your retirement if it was please subscribe or like this video so that hopefully other people can be helped as well and then I'll see you in the next one take care thank you

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Retirement Planning From a CFP® Professional: 6 Keys to a Happy and Successful Retirement

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]

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Retirement Planning During Bear Markets – Especially if It’s Your First One In Retirement

bear markets can feel a lot different when you're retired and you're no longer earning income from work especially if this is your first bear Market since you stopped working when you were younger you know you had time on your side you know you may have even seen drops in the market as an opportunity because it gave you additional time and you got to purchase more shares well things were on sale so to speak but now most likely that's not the case the relationship between our money and our accounts now are of money going out versus money going in to put it simply and plus you may have noticed that there's this psychological component now around money and not wanting to mess things up because the decisions we make really carried much more weight now when we're close to or in retirement and it's really that's not only psychological or emotional it's true because planning the distributions is much more complex than the the planning around around saving and putting money into the investment accounts what led to our investment success the last 30 years is a lot different than what's going to lead to success the next 20 or 30 years or at last that's at least what we've been seeing at streamline Financial since 1998 since we've been around so I want to share how to endure through bad markets if you're close to retirement or you're already retired and then what you can do to actually take advantage of of this even if you're already retired and you're no longer saving money and we're going to do that because we know a universal law of physics that can't be disproven and we can actually apply it to our retirement and make it a little bit better if you're thinking Dave what the heck are you talking about here's a brief explanation so Newton's third law of motion is that every action there's an equal and opposite reaction right you've heard that before so the way that I see it is there's a positive to every negative and the same thing there's a negative to every positive it's the law of polarity so I want to share what the positive is to take advantage of during bad markets and by the way if I haven't met you yet I'm Dave zoller and Tim and Luke and I and Sean we run streamline Financial it's a retirement planning firm and we've been around like I had said since 98 so we've seen clients really go through it all the.com bust the financial crisis and then covet and then all the things in between all those uh you know those mini panics that we've had so we created this channel to share what's working and what has worked for them and so that you can hopefully glean some wisdom from them and then apply it to your your own life so the first thing we need to be aware of is that the previous 30 years there were four bear Market Corrections so that's a drop of 20 or more and then the 30 years before that there was a total of five bear Market Corrections so the main takeaway is we need to expect these bear markets to happen during our retirement during that next 20 30 years right the second thing is we don't want to make a change solely on an emotion right and it's not not just making a drastic change like selling everything and putting everything under the mattress right it's we were just talking to someone yesterday and emotions can cause us not to take an action when we know doing so is actually the Smart Financial thing to do for instance during March of 2020 when it wasn't easy to rebalance your accounts it was very difficult to do but if you did follow through and and do the correct rebalancing system or strategy if you were looking back now it could have made a lot of sense the third thing is update your income plan because that helps guide us and make really good planning decisions around our investment plan so it's really start with the income plan you've heard that before and that helps us make the investment decisions versus the other way around and updating your income plan during bad markets that can also give you some confidence as well as you're looking at where we are today and then looking at over the next few years and and seeing that things maybe aren't as bad as it might seem at least when you've got those two things of the unknown and then the known updating the plan is the known and you can get a little bit better picture on what the future might look like for you now to the two things that maybe could give us an advantage during a time like this this is back to the law of polarity so the possible things that we might be able to use here are well first before I say it as always this is not specific advice to you so we're not looking at your your plan together so before you do anything just talk to a financial professional but idea number one to think about is tax loss harvesting that could be a way to write off some of the losses while still keeping your investment strategy intact and I talk about this concept a lot more in other videos so I'm not going to go into details on it today but just keep that in mind the one thing to to really pay attention to though when we're we're talking about the law or talking about tax loss harvesting is that wash sale rule right so look for the other videos or talk to that Financial professional before thinking about doing that the second thing that could be a possible opportunity for really the first time in a very long time is that ability or option to lock in higher yields in that conservative bucket as you know the the bucket strategy you've seen that before where we've got the possible three buckets and having that conservative bucket here is a great way to plan out and prepare for for bad markets and now at the time of this recording some of those historically conservative asset classes are paying a higher interest a higher yield than what we've seen really over the last decade which could be a silver lining during this period of time so those are just two things possible things to look at which maybe could be taken advantage of by you for for your benefit so those are just two things to think about during this period of time that we're in right now if that short video was helpful please like this and then share it with others if you think it could help them too and if you'd like to talk more about your plan feel free to reach out to me in the in the description below or go to our website streamlinedplanning.com for get you click on the get started button we don't always have space available but you'll hear back from me either way so I hope that was helpful and then I'll see you in the next video

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Want to Lose More Than 50% of Your Retirement Savings? Don’t Watch This Video

I don't care if you have $500,000 or a 100 million this video can help you I'm going to give you six reasons of why you may want to consider a trust as part of your retirement plan and exactly how it can benefit you and your family I'm not a lawyer and thank goodness for that but everything we're going to talk about today is to help you understand how trust can benefit you from a financial planning perspective we want to help you protect your assets pay less taxes and make sure there's more money left for those that you love and if you have a worth of 5 million and above stick around to the end of this video because I have a special bonus for you all right let's jump right to it so high level we have two types of trusts we have a revocable trust and an irrevocable trust now in reality there are hundreds of different types of trusts possibly thousands of them the concept of a trust goes back thousands of years but high level without getting into the legal definitions and boring you with some of the granularities of what a trust actually is and the different types and the definitions we want to keep this high level and make sure you can apply it to your particular situation so revocable trusts are money that you can access you have no creditor protection and they are inside of your estate then you have the irrevocable trust which is outside of your estate so when you put money into an irrevocable trust you have to gift it into that trust you lose control over those assets but by losing control it is now out of your estate you do have creditor protection because you no longer own that asset so we're going to talk a little bit more about this as the video goes along but understand high level there are revocable trusts no creditor protection you can access this money but the primary purpose is this helps to avoid probate irrevocable trusts are money that's outside of your estate you'll pay no estate taxes but you cannot access this money the trustee that you assign upon creation of the trust is the person who manages those assets can make distributions to whomever you've named as the beneficiary of the trust okay so I promise you I'm not going to get too deep here I just want to go over this concept because it will apply when we go through the benefits that we're about to get into some of you may have seen this but this is the national debt Clock we are spending $2 billion on interest on the national debt every single day in this country we're adding about $800 million per hour to the national debt so how does this impact you well right now per person in this country you can die with about $12.92 million before you pay any estate tax that's about 2584 million per couple but I want to take you on a little journey through history going back to the year 2000 you could die with $676,000 and that 1,000 above 675 you would actually owe 55% estate tax on so think about this if you died with $2 million everything above 675 you would owe 55% on now what if some of that money is Ira well then you also owe income tax on that money and if you pass it on to a grandchild you could very possibly ow generation skipping transfer taxes on that money you're talking 80 90% possibly even more completely gone of everything you've left now our estate taxes going back to the 2000 levels I don't know but my point here is we're paying $2 billion a day in interest we're adding 800 million per hour to the national debt at some point it's likely that politicians are going to come after the people that have money increasing the estate tax is one way they may do that so the information that we're sharing today for some of you out there that have accumulated very uh large amounts of wealth or own businesses it may absolutely apply to you right now in 2026 the estate state tax thresholds are coming down they're being cut in half essentially so you can die in 2026 with $5 million per person which is adjusted for inflation it's going to be probably somewhere around 6.2 or 6.3 as a married couple you're looking at about 12 12.5 somewhere in that range anything above that 40% goes to the government so the first reason why you may want to consider a trust for your family for the wealth that you've created is if estate taxes come down to a level of wealth that you exceed or if currently exceed the thresholds for the estate tax to be applied the government may take 40 50 60% whatever they deem is inappropriate estate tax rate from your estate in addition to that there are 13 states that impose an additional estate tax so the one I'm talking about is at the federal level but there are 13 states that also impose their own estate tax so you need to speak to a lawyer you need to include your financial planner but this is where the irrevocable trust comes in handy there's a lot lot of ways to do this a lot of times people use life insurance or they make gifts into the irrevocable trust to buy life insurance to leverage those dollars or we just start on a gifting strategy over time to get money out of the estate so this is why the irrevocable trust is out of your estate because once that money is gifted it can no longer be taxed at estate tax levels either at the federal level or the state level so one of the big reasons people use irrevocable trust is to get money outside of their estate so the government cannot tax it but also to create creditor protection the second reason to consider a trust applies to almost everyone to avoid probate so probate is the process where the court follows your wishes if you have a will and distributes your assets if you don't have a will you die what we call intestate and then the Court decides without your wishes being known where your assets are to be distributed so if you die right now and you do not have assets inside of a living trust or any type of trust let's talk about your home for example then that is part of the public record your investment accounts uh your bank accounts your jewelry everything that you own except for IAS because they bypass the probate process they have designated beneficiaries but anything that goes through the court system becomes public record anyone can look it up see exactly what your house is worth what your investment accounts were worth how much you had in the bank and then they know how much money your children have inherited the third reason to consider a trust is to protect your children we live in a country where we have a divorce rate of about 50% if you pass money on to the kids everything may be fine in the marriage right now but down the road they get a divorce it's possible that half of your money will go to your child's future ex spouse if you don't want that to happen a trust could have Provisions in it that protects your child from divorce and his or her spouse receiving half of your money along the same theme of a divorce it could be creditors that are coming after your child because possibly there's a judgment against them they've been sued well without a proper trust in place with the protections the provisions written into that trust then your children could lose that money to some type of judgment could be a car accident could be a bad business decision could be uh something that they've done where they are personally liable those creditors could come after their assets and if that money is in their bank account it could be subject to complete loss the next reason is to actually protect your kids not from creditors or divorce but to protect them possibly from themselves even your spouse may fall into this category so you can have Provisions built into that trust that say an annual income of x% must be provided or they're not able to access the entire Corpus of the trust or principle that has been deposited into that trust until a certain age you can even name a co-trustee along with one of your children to make sure that there's some oversight with the decisions that are being made now if you don't care if your kids go out and buy Lamborghinis and throw wild parties then don't consider this a a good reason but if you do and you think it may be wise to have some Provisions in there at least to a certain age a trust is an excellent tool to accomplish that work the next reason is for your retirement accounts so inherited IAS don't have the same level of creditor protection that traditional IAS do or rollover iaas do now Ira protection from creditors varies by state so you want to make sure you understand what level of protection you have in your state for your IRA and that they may be different for your traditional IRA that you open and contributed to as well as it may be different for the 401K that has gone into what we call a rollover Ira but when IAS are inherited for the most part you lose creditor protection there may be some variances across states make sure to look into this but if you want your inherited IRA that you receive or you give to your children or possibly that you're going to receive from your parents you should look into a very specific trust that is designed to house IR IRAs you want to make sure it has specific language in this you want to work with an attorney who has drafted these trusts before and understand the correct wording because since the secure Act passed if you do not have the correct wording an institution can refuse to roll the money into that inherited IRA or to accept that Ira into that trust I've seen it happen with a client who did his own trust trying to save a little bit of money the language wasn't in there correctly he passed away money tried to go into the inherited IRA when the daughters accepted it and and it was rejected hundreds of thousands of dollars in taxes were due the last reason a trust could benefit you and your family and this is not an all-encompassing list there are plenty of other benefits and things to consider when it comes to placing a trust as part of your retirement plan but it's to create generational wealth usually a dynasty trust is created for this and I mentioned earlier in this video The Generation skipping transfer tax so when money goes to a skip person which is two generations Beyond you so your grandchildren your great-grandchildren the government imposes a generation skipping transfer tax which is an addition to the estate tax on the transfer of those funds so using your GST generation skipping transfer tax exemption as part of an overall Dynasty trust can help reduce or eliminate the impact of that tax now the law is very muddy here um you want to work with a qualified professional to help implement the right tools so you have the right language and the right tax returns are filed to make sure that you are in complete compliance with the law because there is a higher possibility when you have this type of wealth to be audited so make sure you're working with people who know what they're doing and again make sure to include the financial planner because after all the legal work is done there are still administrative items that need to take place there are financial planning considerations and if you have these different professionals not working together with one another you have a huge potential hole in your retirement plan all of this is step five of what we call the retirement success plan where we work with you and your attorneys to help build the financial plan they draft the documents we execute the financial plan so we have more videos on the channel about step five estate planning as part of our retirement success plan and now on to the bonus so if you have a net worth of over $5 million I'm sure you've heard of the certified financial planner professional but what you may not have heard of is the cpwa the certified private wealth adviser professional profal so this is a designation that myself has completed and also Ed Rossy here at our firm Ed and I both completed this program through the Yale School of Management and the designation is overseen by the investments in wealth Institute and the curriculum is designed specifically for those with 5 million and above so if you think of the cfp designation it's a very broad range of topics very very valuable but it goes very shallow on all of these different topics for the most part or at least compared to the cpwa the CP wa goes tremendously deep on a more narrow set of curriculum but it's designed specifically for those who have net worths of 5 million and above so if you go to the cpwa website you can probably find one in your area if you can't do that or you want to give us a call we're here to help but for this type of planning I would recommend working with a cpwa professional if you have a net worth of over 5 million is opposed to a cfp [Music] professional [Music]

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3 Retirement Purchases People Regret – Retirement Planning

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The 4% Rule for Retirement: What You Need to Know!

among the most typical retirement planning.
inquiries people have is just how much money can I draw from my profile yearly and survive.
in retirement which'' s where the four percent rule can be found in useful as well as it essentially states that.
if you can pull 4 percent or less from your Diversified portfolio purchased points like.
supplies and bonds as well as live off of that quantity while maintaining the rest invested after that there'' s. a great chance that your money is mosting likely to last 20 three decades or more and also as a framework of reference.
if you had a million bucks after that 4 percent would certainly be forty thousand dollars if you had.
5 hundred thousand bucks it would be twenty thousand bucks each year and also it'' s not. established in rock it is based off a research that was done several years back as well as has actually held up well over.
time but there are circumstances where individuals as they age might pull a lot more or if they retire.
early possibly they intend to think about even doing much less than that but it'' s a truly good way to get.
a structure of referral on considering just how much you'' ve saved and what that can translate.
into in retired life regarding earnings goes.

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The 4% Rule for Retirement (FIRE)

If you have spent any time researching retirement planning online, you have heard of the 4% rule. If you haven’t heard of it, the 4% rule suggests that if you spend 4% of your assets in your initial year of retirement, and then adjust for inflation each year going forward, you will be unlikely to run out of money. To put some numbers to it, if you wanted to retire and spend $40,000 per year, adjusted for inflation, from your portfolio, you would need to retire with one million dollars to adhere to the four percent rule. This rule is alternatively described as the requirement to have 25 years worth of spending in your portfolio to afford retirement. 1/25 equals 4% – it’s the same rule. While it is simple and elegant, the 4% rule is probably not the best way to plan for retirement, especially if you plan on retiring early. I’m Ben Felix, Associate Portfolio Manager at PWL Capital. In this episode of Common Sense Investing, I’m going to tell you why the 4% rule is not a rule to live by.

The 4% rule originated in William Bengen’s October 1994 study, published in the Journal of Financial Planning. Bengen was a financial planner. He wanted to find a realistic safe withdrawal rate to recommend to his retired clients. Bengan’s breakthrough in determining a safe withdrawal rate came from modelling spending over 30-year periods in US market history rather than the common practice of simply using average historical returns. Using data for a hypothetical portfolio consisting of 50% S&P 500 index and 50% intermediate-term US government bonds he looked at rolling 30-year periods starting in 1926, ending with 1992. So, 1926 – 1955, followed by 1927 – 1956 etc., ending with 1963 – 1992. The maximum safe withdrawal rate in the worst 30-year period ended up being just over 4%. From this simple but innovative analysis, the 4% rule was born. More recently Bengen has adjusted his spending rule to 4.5% based on the inclusion of small cap stocks in the hypothetical historical portfolio.

While the 4% (and the 4.5% rule) may have basis in historical US data, there are substantial problems with these rules in general, and specifically in the case of a retirement period longer than 30 years. In his 2017 book How Much Can I Spend in Retirement, Wade Pfau, Ph.D, CFA, looked at 30-year safe withdrawal rates in both US and non-US markets using the Dimson-Marsh-Staunton Global Returns Dataset, and assuming a portfolio of 50% stocks and 50% bills. He found that the US at 3.9%, Canada at 4.0%, New Zealand at 3.8%, and Denmark at 3.7% were the only countries in the dataset that would have historically supported something close to the 4% rule. The aggregate global portfolio of stocks and bills had a much lower 30-year safe withdrawal rate of 3.5%. Considering returns other that US historical returns is important, but, in my opinion, one of the most important assumptions to be aware of in the 4% rule is the 30-year retirement period used by Bengen. People are living longer, and many of the bloggers citing the 4% rule are focused on FIRE, financial independence retire early.

In Bengen’s study the 4% rule with a 50% stock 50% bond portfolio was shown to have a 0% chance of failure over 30-year historical periods in the US. That chance of failure increases to around 15% over 40-year periods, and closer to 30% over 50-year periods. FIRE likely means a retirement period longer than 30 years. Modelling longer time periods using historical sampling becomes problematic because we have data for a limited number of historical 50-year periods.

One way to address this issue is with Monte Carlo simulation. Monte Carlo is a technique where an unlimited number of sample data sets can be simulated to model uncertainty without relying on historical periods. Even with Monte Carlo simulation, there is an obvious risk to using historical data to build expectations about the future. The world today is different than it was in the past. Interest rates are low, and stock prices are high. While it may be reasonable to expect relative outcomes to persist, such as stocks outperforming bonds, small stocks outperforming large stocks, and value stocks outperforming growth stocks, the magnitude of future returns are unknown and unknowable. To address this for financial planning, PWL Capital uses a combination of equilibrium cost of capital and current market conditions to build an estimate for expected future returns for use in financial planning. This process is outlined in the 2016 paper Great Expectations.

Using the December 2017 PWL Capital expected returns for a 50% stock 50% bond portfolio we are able to model the safe withdrawal rate for varying durations of retirement using Monte Carlo simulation. We will assume that a 95% success rate over 1,000 trials is sufficient to be called a safe withdrawal rate. For a 30-year retirement period, our Monte Carlo simulation gives us a 3.5% safe withdrawal rate. Pretty close to the original 4% rule, and spot on with Wade Pfau’s global revision of Bengen’s analysis. Now let’s say a 40-year old wants to retire today and assume life until age 95. That’s a 55-year retirement period. The safe withdrawal rate? 2.2%. I think that this is such an important message. The 4% rule falls apart over longer retirement periods. So far we have talked about spending a consistent inflation adjusted amount each year in retirement. One way to increase the amount that you can spend overall is allowing for variable spending. In general this means spending more when markets are good, and spending less when markets are bad. The result is more spending overall with a lower probability of running out of money. The catch is that you have to live with a variable income or have the ability to generate additional income from, say, working, to fill in the gaps when markets are not doing well.

We also need to talk about fees. Fees reduce returns. Fees may be negligible if you are using low-cost ETFs, but they become extremely important if you are using high-fee mutual funds, or if you are paying for financial advice. The safe withdrawal rate in the worst 30-year period in the US drops to 3.56% with a 1% fee, making the 4% rule the more like the 3.5% rule after a 1% fee.

Adding a 1% fee to the Monte Carlo simulation reduces the safe withdrawal rates by around 0.50% on average. In both cases this is a meaningful reduction in spending. Of course, fees need to be considered alongside the value being received in exchange for the fee. This value should be heavily tied to behavioural coaching and financial decision making. There have been two well-known attempts to quantify the value of financial advice, one by Vanguard and one by Morningstar. Vanguard estimated that between building a customized investment plan, minimizing risks and tax impacts, and behavioural coaching, good financial advice can add an average of 3% per year to returns. Morningstar looked at withdrawal strategies, asset allocation, tax efficiency, liability relative optimization, annuity allocation, and timing of social security (CPP in Canada), to arrive at a value-add of 2.34% per year.

PWL Capital’s Raymond Kerzerho has also written on this topic, finding an estimated value-add of just over 3% per year. Based on these analyses, one could argue that paying 1% for good financial advice could even increase your safe withdrawal rate. I would not go that far, but the point is that while fees are a consideration, they may be worthwhile in exchange for good advice.

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Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

I wish to share an investment system for retired people to hopefully help you as you'' re believing regarding as well as preparing for your retired life we'' re additionally mosting likely to check out exactly how to prepare your retired life for the numerous potential prospective economic Seasons that we may be headed into so we intend to consider the several seasons and afterwards the Easy System that'' s going to aid lower taxes and afterwards lower danger as well currently if I place'' t met you yet I ' m Dave zoller and also we aid people prepare for as well as Apply these retirement methods actually for a select variety of people at streamline Financial that'' s our retired life preparing company but since we can'' t help everyone we intend to share this with you too so if you like retirement specific videos regarding one each week be certain to subscribe so in order to develop a proper investment plan in system we want to make certain that we construct out the retired life revenue plan first because without the revenue plan it'' s much more difficult to create the best investment technique it'' s type of like without the earnings plan it'' s like you ' re rating well 60 40 profile seems good or you know May possibly this amount in the conservative pail appears affordable you currently understand as well as as well as you really feel that as you get close to retired life that goal of simply even more cash isn'' t the the end-all goal that we need to actually be going for for retirement it'' s extra concerning sustainability and also assurance as well as after that actually the assurance of income and also perhaps less threat than prior to the last three decades uh things that you did to be effective with the monetary side are mosting likely to look different than the following 20 or 30 years currently if you need assistance defining the the earnings plan a little then take a look at the do it yourself retired life training course listed below this video now as soon as you do Specify your goals for retirement and then the revenue required to accomplish those goals then creating the investment system ends up being a whole lot less complicated and within the financial investment plan we actually recognize that we can just control three things in all three points we in fact desire to reduce through this investment system the initial thing we can reduce or minimize is just how much tax you pay when investing we had a a client that was not a client of simplify Financial however of a tax obligation company involving the the CPA company in March to grab his income tax return and he was completely amazed that he had sixty thousand dollars of extra earnings on his income tax return that he had to pay tax on ideal away before April 15th and it was due to the funding gains being identified and also other circulations within his investment account and also he said however I didn'' t sell anything and the account didn ' t also rise that much in 2014 and I reached pay tax on it however he was already in the highest tax bracket paying around close to 37 percent on temporary funding gains as well as rewards as well as interest so that was an unpleasant surprise as well as we see it happen regularly than it ought to however this can truly be avoided and right here'' s 2 methods we can manage tax to make sure that we put on'' t need to have that occur as well as truly just control tax obligation and pay much less of it is the goal and also I'' ll keep this at a high degree however it'' ll get the the factor throughout top is the type of Investments that you own some are perhaps funds or ETFs or private uh equities or things like that the funds and ETFs they might pass on capital gains as well as as well as distributions to you annually without you even doing anything without you offering or or getting however it occurs within the fund a whole lot of times now we would certainly use funds and ETFs that are considered tax obligation reliable so that our customers they can choose when to recognize gains as opposed to letting the fund company make a decision now the second method is by using a technique that'' s called tlh every year there'' s many several fluctuations or large fluctuations that occur in a financial investment account as well as the method that we call tlh that permits our clients that'' s tax obligation loss collecting it permits them to offer a financial investment that might be down for component of the year and after that relocate right into a really comparable financial investment as soon as possible so that the financial investment technique stays the very same as well as they can actually take a write-off on that loss on their taxes that year currently there'' s some rules around this once more we'' re going high degree yet it offsets uh you understand for that one customer that are not a customer but who had the huge sixty thousand dollars of income he can have been countering those resources gains by doing tlh or tax obligation loss harvesting that approach has actually saved hundreds and also hundreds of of bucks for customers over a period of years so on to the following point that we can regulate in our investment plan which'' s cost this set ' s less complicated yet many experts they wear'' t do it due to the fact that it ends up paying them less now considering that we'' re certified economic organizer experts we do comply with the fiduciary standard as well as we'' re obliged to do what'' s best for our clients so tell me this if you had two Investments as well as they had the specific same approach the very same Returns the exact same danger and also the very same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times much more at point six percent well I recognize that solution is evident and also we'' d opt for a reduced expense funds if it was all the very same inexpensive funds as well as ETFs that'' s how we can really assist reduce the expense or that'' s just how you can assist decrease the price in your investment plan since every basis point or part of a percentage that'' s saved in price it'' s included to your return every year and this includes up to a whole lot in time now the last thing that we wish to reduce and manage is risk and also we currently spoke about the flaws of spending entirely based on on risk tolerance and also when it involves take the chance of a lot of people assume that term risk tolerance you understand just how much danger can we on a scale of one to 10 where are we on the the threat element but there'' s one more method to consider danger in your investment method and like King Solomon our team believe that there'' s a period for everything or like the if it was the bird song There ' s a season for whatever as well as we also think that there'' s four different seasons in spending as well as depending upon what season we'' re in some Investments perform far better than others as well as the 4 Seasons are pull it up right now it'' s more than expected inflation which we may be feeling yet there'' s additionally a season that can be less than expected or depreciation and after that there'' s greater than anticipated economic growth or reduced than anticipated economic growth and also the goal is reduce the threat in investing by making certain that we'' re prepared for every one of those potential Seasons because there are specific property courses that have a tendency to do well during every one of those seasons and we don'' t recognize no one knows what'' s truly mosting likely to occur you understand people would would speculate as well as say oh it'' s going to be this or this or whatever could happen but we put on'' t know without a doubt that ' s why we want to make certain we just have the possession classes in the best areas to make sure that the income plan doesn'' t get affected so the financial investment system integrated with the earnings system clients wear'' t need to fret about the movements in the marketplace since they understand they'' ve got sufficient to weather any prospective period I hope this has actually been valuable for you up until now as you'' re believing regarding your retirement if it was please subscribe or like this video to make sure that ideally other individuals can be helped too and after that I'' ll see you in the next one make sure thanks

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Pay This Off Before You Retire – Retirement Planning Tips

in this video clip we'' ll consider what expenditures you should consider eliminating before retiring as well as a couple of blunders that retirees make when it comes to costs in retired life there'' s a couple of things that you might intend to bid farewell to before you bid farewell to that wage or that job revenue we ' re going to cover this in three components it ' s mosting likely to'resemble this first we ' ll review wants and needs and afterwards what i ' d phone call highway burglary and afterwards also what to ear mark in retired life we ' ve seen that the senior citizens that can eliminate these expenditures before retiring have a bit much more breathing area and they really feel much better concerning their retired life plan because when you ' re planning for retirement we normally consider actually two kinds of costs it ' s the demands which are the fundamentals the outright must-haves to just live you know as you think of my maslow'' s pecking order of requirements those things at the base layer and also'then there ' s the desires which are the the nice to have things however after that there are other kinds of expenditures that really put on ' t match that classification of needs or desires those are things that we require to be made with prior to retired life and by the way i'' m dave zoller as well as me and also my team we run improve financial it'' s a riches administration company concentrated on retired life preparation and we'' ve been assisting individuals directly for 13 years and enhances been around for 22 years as well as we produced this channel to share what'' s dealing with our customers so that you can profit also so if you'' re near retired life be certain to subscribe due to the fact that i share one brand-new video each week to make your retirement a little bit better i also placed some totally free resources in the summary below like my preferred diy retirement planner if you'' re more of a do-it-yourselfer so allow'' s enter the list and afterwards as you ' re enjoying if i leave something out please share it in the comments below i'' d love to listen to from you and after that likewise i'' ll attempt to respond back to relying on the amount of remarks i get so the first two you will most likely concur with yet you could not be thinking regarding the various other ones and also i intend to reveal you ways to prepare and also just see to it that your retired life is a little smoother by utilizing our retirement preparation software program the very first one which you currently know is to pay off high interest financial obligation which i occasionally think of as highway robbery it'' s when those interest rates are just so high as well as they ' re billing individuals it just seems unjust right that high interest financial debt i'' m referring to is normally charge card debt and sometimes it'' s pupil finance financial debt and also you'' d be shocked at the variety of individuals that in their initial year of retirement they still have a big month-to-month settlement in the direction of charge card repayments or student financing financial obligation and this must be the leading point that we ought to concentrate on to really lower prior to we bid farewell to that work income or that wage since if you retire with credit card financial debt and afterwards you obtain significant regarding paying it off in retired life then that means you'' ve got this larger amount that you reached draw from financial investments which might alter your retired life prepares i aided a woman lately who'' s not a customer but she was taking a look at her strategy and she desired some aid and also she had regarding 20k of charge card financial obligation she likewise had more than a million dollars and also her regular expenditures adding this 20k of a round figure cost to her strategy it really made quite an impact and also when we looked at that together it gave her the inspiration to function a bit additional and also additional hard to get this financial obligation repayment to absolutely no or obtain the credit score card financial obligation down to absolutely no before retiring since she'' d have a better satisfaction and it would simply increase her confidence as she was entering into retirement that comfort it'' s crucial right i ' m sure you ' re really feeling similarly i in fact intend to share a bit a lot more about exactly how to achieve this prior to you retire and also during retirement and also i share that at the end of this video clip so remain tuned the following ones are costs that you can either pay early or at the very least you intend to earmark these in your retired life plan as well as i'' ll reveal you what i suggest when i claim earmark that simply indicates alloting funds for details purposes and also either not including those funds in your retirement or including them however at least showing the specifics within the plan as well as i'' ll reveal you some pictures turning up of a retirement and just how to do this number one thing to set aside is any type of huge traveling expenses that you'' re eagerly anticipating that first year of retired life or truly the initial couple of years of retired life a lot of people start retirement and also they'' ll truly have a huge unique journey that they ' ve constantly intended to take or a place that they'' ve constantly wanted to go to as well as great deals of times that trip it'' s mosting likely to cost greater than the common trip that you might handle a regular year it'' s really that cap to uh ending work and after that truly doing a larger than typical journey some customers pick to take one of those european uh river cruises that are rather popular and also they can set you back 10 to 20k or even more and recognizing that this is a bigger than normal expense or a round figure expenditure coming quickly into retirement you can either pay that in advance like in fact a lot of the cruise locations make you do or you can at the very least earmark it in the strategy and make certain that everything collaborate with everything and also i'' ll toss it in there as an example showing up quickly here'' s an example of a retirement that'' s based on yearly expenditures increasing yearly three percent regular rising cost of living price and after that over on the left side we can add some expenses that are bigger as well as uneven you understand not the normal every year costs however things we can set aside to ensure that we can see the influence of on the plan prior to in fact spending the cash as well as doing it in this manner we can include some satisfaction to your retirement plan as well as your self-confidence as you'' re pocket money and also so you can just feel that it'' s a good decision and feel great regarding that holiday or whatever it might be a couple of other bigger than regular single expenses we'' ve seen belong to your grown-up children if you have them whether it'' s last college expenditures or perhaps a wedding that you intend to assist with or future gifts possibly towards a house purchase or something like that for those you'' re not really able to pay those before you retire due to the fact that we wear'' t recognize when they ' re going to take place so earmarking them is the next ideal step and also setting funds aside to see to it that these potential expenses that you may have in the future prepare as well as readily available prepared to deploy when needed one mistake that we'' ve seen some senior citizens make getting close to retired life is not considering these one-time expenses and also after that obtaining caught a little off guard when it'' s time to spend for them particularly if we'' re in a market like we are currently currently you might be believing one big cost that i did not point out as well as before i share that a person if you delighted in watching this video until now and also you located it handy please click the like button so this can ideally spread out to other individuals that are like you and also could find it helpful as well to ensure that one huge expense that you may be considering that i didn'' t reference yet is paying off your entire mortgage prior to you retire and this is a huge one for lots of people as you'' ve heard prior to behind every financial choice there'' s likewise a psychological one as well and also lots of people they really feel really strongly or possibly adamant on on being debt-free in retirement which'' s an actually great feeling for for many individuals for others depending on their monetary choice it really a home loan might really make feeling in retired life some individuals see it as a set cost which doesn'' t rise with inflation it in fact obtains less costly as every little thing else boosts with inflation and as one buck can purchase less and also much less gradually which is essentially what what rising cost of living is it may go to really appealing rate of interest as well as well as some people want to have a bit extra versatility in their pension by maintaining some funds offered in their non-retirement accounts versus utilizing that cash to pay off the mortgage the more crucial point to to think of when choosing whether this makes feeling whether to pay it off or not is attempt to determine first just the emotional sensation or comfort with debt you recognize yourself and after that also your partner if you'' re married and after that step 2 is map out both situations what does it look like that strategy that we'' re just checking out over here what does it look like if you pay off debt early or wear'' t repay the mortgage whatsoever check out the distinction see which one'' s alright lots of times it boils down to the strength of the emotional sensation around debt for a single person in the connection or if it'' s simply you then'it ' s just whatever you like when we'' re considering settling costs or allocating points in retirement get assist from a financial specialist a cfp could be a fantastic area to begin yet i'' d like to speak with you what did i not point out as we'' re thinking of these different costs in retirement i'' d love to hear your thoughts about these costs and also especially the thoughts on home mortgage having a home loan in retired life and i wish to share another video regarding just how enhancing peace of mind and also ensuring that you obtain both components required for an effective retirement the depressing thing is that in this industry the financial market most of the time they focus on one point however right here'' s a video to view that ' ll help you consider and also get ready for both sides of retired life so ideally i'' ll see you there as well as if you haven ' t already subscribe and also then i'' ll see you in future videos take treatment you

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