You May Not Need as Much Money For Retirement as You Think!

Check out this video in which Brian shares how one client saved $18,000 in hidden fees and expenses.

Additionally, Brain reviews some conclusions from Employee Benefit Research Institute that look at the spending habits of retirees. The study indicates that you might not need as much money as you think to retire and live comfortably.

Are you underfunded, on target, or overfunded for retirement?

Knowing where you stand matters as it can mean entirely different planning strategies.

Contact us to take your Nest Egg Stress Test today.

The Big Retirement Income Strategy Risk

What’s the best retirement income strategy for you?

In this video, Brian runs through an example of 3 brothers who have the same strategy of consistent withdrawals and the same initial investment. Each brother retires in a different year, how much do their final nest egg totals differ?

This example shows how sequence return risk had an affect on each brother’s overall nest egg. So, while a standardized withdrawal strategy of 4%, for example, is common practice it isn’t always the best choice due to variables over time.

Contact us to take your Nest Egg Stress Test. Make sure that you are prepared for an incredible retirement.

A Retirement Story: Estate Planning

incredible retirement story

Estate planning is a large part of preparing for your financial future and legacy.

But, in truth, it’s complicated, and if you don’t work with professionals you may miss a small detail that has big implications later on for yourself or your family.

Take this story, for example, which illustrates how leaving your family an inheritance can quickly turn into a more difficult situation.

Several years ago, Roger called me because he and Nancy were worried about Nancy’s father. He was in his early eighties and in poor health.

The elderly man had very little money and Roger and Nancy didn’t want the man’s healthcare expenses becoming a liability for them, jeopardizing their own retirement.

I assured Roger that their assets would not be at risk but suggested we meet to get a handle on all the details and facts concerning Nancy’s father. We agreed to meet two weeks later but Roger called a few days later to say that his father-in-law had passed away.

Roger and Nancy finally came in to see me about two weeks after the funeral. As we began talking, I learned that Roger and Nancy were both sad and glad.

Obviously, they were sad at the passing of Nancy’s father but they were pleasantly surprised to learn that Nancy’s father had left her over $1.5 million dollars.

Nancy had always thought her father was in a tight financial situation. He always talked about having to pinch pennies and using old bread wrappers for garbage can liners, etc.

Nancy, an only child, was astonished that her father had so much money but she was also sad that he never really enjoyed any of it for himself.

As the couple began the process of settling her father’s estate, they found that he had set up a revocable living trust.

Unfortunately, his entire estate still had to go through probate since he never got around to re-titling any of his assets into the name of his revocable trust, essentially rendering it worthless.

For more information on estate planning and planning for your Incredible Retirement, pick up a copy of my book, Worry Free Retirement.

Why Most People Fail at Setting Meaningful Retirement Goals

The single biggest mistake people make when they set goals is that their goals are too vague.

Before you can tackle the necessary decisions related to retirement, including investments, taxes, insurance, etc., you must identify your values and then determine your goals and what you want to accomplish over your lifetime.

The fun comes when you accomplish your goals and you have tangible evidence that you are living life according to your true values.

Here’s what I mean by setting specific goals…

“I want to retire when I’m fifty-five,” is too vague. A specific goal would be,

“I want to retire when I’m fifty-five and for me that means January 1, 2017, with a monthly income of $5,000 after taxes or a yearly income of $60,000 net after taxes.”

That’s a specific goal.

Another example of a concrete goal is not saying, “I want to travel.”

Instead, you might say, “I want to have $10,000 to $15,000 for travel per year. I want that money available and I want to start spending that money next year.”

You would write your goals and specify the year or the month, if possible, in which you want to start traveling and the year in which you will need to have the travel fund available.

In order for you to have a valid goal, you must have something in writing. A goal is not simply something that you discuss with friends.

Your incredible retirement goals are an important objective and having them in writing also reminds you to handle the necessary financial, legal and tax issues that go along with your goals.

Having written goals that you review periodically reminds you why you’re doing certain things and helps you focus on what really matters.

It’s worth mentioning that your goals aren’t static. Some of your goals may stay the same but others will vary as circumstances in your life change.

While you may modify your goals, your core values don’t disappear.

Ready to put your goals into action for an Incredible Retirement? We can help; contact us today to meet with one of our Wealth Managers.