Skip to main content

4 Retirement Tools for Planning

How much money do you actually need to retire?

Some retirement calculators say it takes an estimated 1 million dollar retirement nest egg to bring in an average of $40,000 a year as a retirement income. But, in fact, just last month, through research from a science journal published by the Max Planck Insititute for Demographics, the probability of living to 110 years has just increased significantly. 

Nevertheless, what does that have to do with you, and how much do you actually need to retire? I will address my opening statement first. I have been helping people plan for retirement for over two decades, and I must admit that while most have saved for retirement, less than 15% have amassed a million-dollar retirement portfolio.  Does that mean that the existing 85% will live below the poverty line in retirement? I am unsure that this will be the case as some still have pensions, annuities, and untapped real estate wealth not primarily counted on for retirement that may help fill monthly income buckets.

​​

(Sneak Peek at Episode 26 | "Finding your retirement number") From our Retirement Podcast

My second statement, however, does have larger implications on your retirement savings than you may think. One of the base factors for determining how much money you will need is how long you will need it. The financial planning rule of thumb has always been on average of 20 years. The supporting data shows that if you retire at age 65, you will live another 20 years based on a life expectancy of 85 years old. Depending on what retirement calculator you use, the 20-year number may already be incorporated in the formula

The tools we use over at myretirementexit.com help with that determination because we can enter this information manually.  When looking for online retirement calculators, this number must be flexible on the back end.  The last thing you want to do is run out of money from your retirement buckets because of a formula miscalculation. 


How to make adjustments on your own with retirement tools

One of the biggest problems pre-retirees have is trying to make adjustments on their own.  We created myretirementexit.com as a platform for retirees who want to make adjustments on their own.  We proud ourselves on empowering our users and readers with educational retirement tools.  We believe your working years are so fluid that you could be working to pay bills off today, and tomorrow you could be forced to retire because of health reasons.  The days of expensive advice previously reserved for the wealthy have changed.  You can do it yourself and occasionally add in a little inexpensive professional advice to see if your compass continues to align with your destination and goals.  We create one retirement tool called retirementchat.com just for this reason.  To all retirees to have an inexpensive way to check-in for advice.

I also believe that trying to manage your own retirement portfolio can be just as challenging.  The internet is full of websites and retirement calculators to help guide you on your journey so take advantage of them at every opportune time.  I personally think you can make adjustments on your own with the right guidance. Therefore, I created two more free retirement tools for you to use to get you off to a great "do it yourself" (DIY) start.  One of the tools you can access by simply going to YouTube and viewing this quick 8-minute retirement video.  It is a video created for a person planning for retirement and introduces one simple "DIY" strategy.  The next free retirement tool is a retirement webinar called the 60-minute retirement.  All of the aforementioned retirement tools were created to make adjustments on your own with no help from an advisor.

  

Get an Assessment today not tomorrow

People I meet at most of my live workshops, like Ms. Debra Turner or Andres Rosario, will tell you firsthand how I lay out in my retirement planning workshops the importance of getting an assessment as soon as possible.  What I have discovered over the last 20 years is that you should not run from retirement statements.  Your statements tell a story of your journey and essentially tell you where you should be stopping along the way to get gas or snacks.  Okay, bad metaphor during a pandemic; nevertheless, the same principle applies.

You need to get an assessment as soon as possible to know what adjustments have to be made.  You can make adjustments that will show up in your retirement plan in less than three months.  For example, on Episode 19 of my "Getting to Your Retirement Exit" podcast, I shared three retirement moves you should make today.  I shared that possibly shifting to a Roth IRA strategy could position you well against changing tax laws due to the covid 19 pandemic.  I also recorded a must-see follow-up video entitled a Roth IRA vs. Traditional IRA. Knowing what you have to work with today is much better than finding out tomorrow when it is too late to make adjustments.  Get a free assessment using another one of our free retirement calculator tools to find out where you are at.


Stop listening to friends and co-workers

The last tip I would like to share is pretty much self-explanatory.  This statement may be a little put off by a few, but in all of my years of getting people to their retirement exit, please pay close attention.  Every single person who has ever saved or planned for retirement has their own investment DNA.  Let me explain further.  Every person who has ever paid payroll taxes as an owner or employee has their own retirement DNA.  The co-worker sitting in the cubicle or in the breakroom has a different retirement objective than you do.  They may have only 20 years left on their mortgage versus your 20 years.  They may have a rare medical condition, and you may not have any medical challenges.

​​

My point is you are wasting your time trying to figure out what your friends are doing towards retirement.  Sure, you may both qualify for a pension at a certain age, but there are more than 3 dozen variables that will never match in your households.  Another reason why you should never listen to friends and co-workers is because you all have different risk tolerance.  When I first married my wife, I looked at her retirement portfolio because I am an expert, right? She had her entire portfolio in cash and bonds earning on average 3-4% annually.  She had an entire retirement portfolio with no growth potential.  In fact, she was losing money every year because inflation was averaging 2.7%.  After expenses and taxes, she was losing money, and she still did not want me to make any adjustments.  Why?  Not that she did not trust me, but she has her own investment DNA.

The 4 Retirement Tools that I just mentioned could save your retirement even if you are 40, 50, or even 60.  I have been in the mind of retirees for more than 20 years and have learned from some of their mistakes. So please subscribe with notifications on my YouTube Channel, My Retirement Hacks, for more tips and retirement tools.


Conclusion

You’ve worked your whole life to get to this point in your life. Now, you’re finally at the age where you can enjoy your life and live it in your own way. You’ve worked hard, saved money, and are ready to enjoy the fruits of your labor. Now, it’s time to start planning for retirement. We can help you! Our retirement calculator helps you see what your retirement will look like at your current savings rate. We’ve also got a retirement planner that helps you see what your future will look like when you’re ready to retire. It’s never too early to get started on planning for what your life will look like in your golden years! We hope you found our blog useful. Please do not hesitate to contact us through our retirement chat platform if you have any questions.





Comments

Popular posts from this blog

One Retirement Myth To Be Aware Of Today

I love talking retirement and rightfully so, as I have been working with clients and their portfolios for nearly 20 years. One thing that was hard for me to understand as a young life insurance agent was why I had to know everything about a client before I started writing their life policy. My manager would always tell me that you have to do confidential questionnaires. My thought as a young agent was why when they wanted insurance, and I want to sell it to them. This type of approach was a win-win for me trying to get a commission. As a veteran in the business for more than 35 years at the time, he said you young kids just do not get it. How do you go into a doctor and tell them your elbow hurt because you bruised it, and they give you some cream and send you on your way, only to discover that you have a fractured bone chip? Now that I am older and around the same age, he was when he started sharing his sage wisdom with me, I truly understand what he was talking about now that I am ol

Why I Popped The Retirement Question

I was creating a retirement plan for a client by the name of Ms. Smith the other day, and I popped the question to her. She said, well, I don't know. It depends on how I feel at that time. I said what do you mean how do you feel at that time, better yet how do you feel about it today. She said I feel pretty good about it today. I said I have been married for 23 years and have never proposed this question to my wife. She said you should; she would probably feel the same way I do about it. The question I had popped to Ms. Smith was, "If we could go back to November 2007, the "Great Recession" and her entire retirement portfolio was cut in half by 50% would she stick it out?" She said mainly she was in a different place financially and mentally at the time verse where she is now. I told her I get it, and she should be in two different areas in her life versus back then, but preparing retirement plans, I have to ask that question. Not because it's on my q

What To Do with Your Retirement In A Market Correction

I have been getting a lot of requests to put up a blog post to prepare everyday retirees for an upcoming market correction.  First of all let’s describe or identify a market correction.  A market correction is essentially an overall market drop of about 10%.  A market correction is not to be confused with a bear market, which is about a 20% drop in the markets.  First, let’s discuss when the last official market correction was on the books.  The last correction was the summer of 2015, and it started with China’s market in June.  China had a stock market crash that continued into July and August, then around the middle or August the Dow Jones Index (a collection of key stocks that measure the market as a whole)  The Dow Jones Stock Index basically measure the pillars or historical fortune 500 giants of the United States fell about 10%.  The Dow Jones fell 588 points during a two-day period, 1,300 points from August 18–21. Then on Monday, August 24, the world stock markets were down s