Plan Today, Own Tomorrow: Recent Episodes
Garry Thurman
Co-Founder of Guardian Investment & Accounting, Garry Thurman and Insurance and Retirement Advisor, Tyde Mcintosh give advice to those preparing for retirement.
- Understand your monthly spending and /or monthly budget
- Have a proper handle on your monthly income sources
- Don’t forget about medical or health care cost
- Decide whether you are going to enlist the help of a financial professional
- Develop a written financial plan
- Method #1- Systematic Withdrawal- Also know as the 4% withdrawal rule or “Goal-based”
- Method #2- Time-segmentation or “bucketing”
- Method #3- Income Flooring
- Method #4- Guaranteed Cash Flow planning
Why can retirement be so stressful?
- Focus on the big picture, not just potential returns
- Consolidate your accounts
- Broad diversification
- Automate your income
- Strip your investment strategy down
- Go green-paperless
- Can a “bucket plan” help you?
- How much money do I need to retire?
- What is an RMD?
- How do taxes work with my social security and/or pension plan?
- How much could healthcare cost in retirement?
- When can I withdraw money from my retirement accounts?
- Stock market downturn at the wrong time
- Not enough diversification
- Fear of uncertainty
- Not enough monthly income
- What is an annuity?
- Immediate vs Deferred- the difference
- Does the beneficiary inherit your payment or your cash value?
- Do you have to annuitize your annuity to turn it into a income stream?
- Is there any insurance on the annuity or payment?
- How do the fees work?
- How do annuities earn interest?
- How does the insurance agent or financial advisor get paid for the annuity?
Bonus!
Do insurance agents or financial advisor have multiple options for annuities they can use?
- Inflation Risk
- Longevity Risk
- Long-term illness/Chronic Illness Risk
- Rising health care cost
- Emotional/irrational investor behavior
- Losing money “safely”
- Sequence of return risk
- Investing too conservatively
- Best way to approach the lump sum vs. pension decision
- Focusing on your assets instead of your retirement income
- Choosing the right Medicare plan
- How long do you plan to work? What are some pros and cons?
- How long will your retirement last? Identifying income sources, tracking your expense, planning for inflation and managing risk!
- How will you generate income in retirement? Guaranteed income, Non-guaranteed income and Combination income!
- What is the ultimate purpose of your assets?
- What is a “financial milestone?”
- Age 55, age 59.5, Age 62, age 65, age 66-67, age 70 and age 72
- What about Medicare and all it’s moving parts?
- Other financial milestones that change your life (College planning, marriage and divorce)
Let’s define what “rule of thumb” really means
- Save 10% of your income rule
- Using your age to determine your risk/non risk allocations. “rule of 100”
- You will need 70-80% of working income in retirement
- 4% rule
- You need $1,000,000 at least to retire
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Sequence of Return Risk and Stock Market Timing
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Rising Cost of Health Care and Long Term Care
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Outliving your nest egg
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Inflation
Let’s define what happiness means
Key steps:
- Define what you want out of your retirement
- Set your target date
- Develop an income plan
- Get a part time “fun” job
- Don’t get complacent
- Time to “tighten-up” that budget
- Explore some consolidation efforts
- Payoff or reduce your debts
- Hire a financial planner
- Reduce your investment risk
Mistake #1- Underestimating your needs
Mistake #2- Panic Selling
Mistake #3- Not knowing what happens when you take money out of an account
Mistake #4- Listening to the “hot tip” Don’t follow the herd-
- What is the right number to focus on?
- Best method to determine where you stand?
- Creating a retirement budget and all if its moving parts!
- What about life’s variables? Are you prepared?
- What should you do?
- Is there one superior financial vehicle to all others?
- Can I have money in only one world of money and still be successful?
- What financial vehicles should I consider once I retire?
- How can I invest my nest egg to help maximize my retirement income?
- Are there financial advisors that have access to all 3 worlds of money?
- How much does it cost to buy and sell stocks?
- Are all mutual funds loaded with commissions attached to them?
- What other type of fees are inside mutual funds?
- Why do ETF’s have lower expense ratios that most mutual funds?
- Do annuities have fees?
- What exactly is Medicare and what all does it cover?
- What is the difference between Medicare part A, B, C and D?
- What is the difference between and Medigap plan and a Med Advantage Plan?
- Avoiding assumptions
- What assumptions? The magic number, understanding your lifestyle, life expectancy, contingent assets, and inflations impact.
- How to determine how much you need to retire
- Key factors- creating a safety and growth bucket
- Health Care
- Debt
- Why to old school retirement in ending
- The current retirement age
- Finding the right advisor
- What questions to ask that advisor.
These are the 5 phases we will discuss- 1. Imagination 2. Anticipation 3. Liberation 4. Reorientation 5. Reconciliation
We will also discuss why it's never too late to plan for retirement, no matter how old you are!
- reduce your fixed expenses
- keep earning income
- maximize social security if possible
- consider using programs that offer income for life
- don't overlook taxes
- protect your health and well being
- We are living longer
- Pensions are becoming extinct
- Social Security Under Pressure
- Not knowing how to invest
- Interest rates are low
- Rising health care cost
- Stock Market Risk
- Sequence of return risk
- Longevity Risk
- Inflation risk
- Bond Risk/Interest Risk
- Why companies are offering pension buyouts
- How does interest rates play a part in this?
- What about longevity and liability?
- Have you forgot about 2008?
- Are you in the retirement red zone?
- Have you considered the impact of needing long term care?
- You are not alone
- Set a goal (save more, spend less, work longer)
- Sooner you start the better