Joe Anderson, CFP® and Alan Clopine, CPA summarize the highs and lows of 2016 in YMYW podcast episode 92, then talk about how to automate and increase your retirement savings, how to create a retirement lifestyle game plan, and steps to take if you plan on moving in retirement. Original publish date December 31, 2016 (hour 1). Note that content may be outdated as rules and regulations have changed.
01:30 “This year, if you take away any lesson from this [past] year in 2016 when it comes to your investments…is that it’s very difficult for you to time the market.”
04:52 “That’s what investors need to do – they need to look at the long-term and not worry about the day-to-day, month-to-month, quarter-to-quarter because if you have the right investment allocation for you, then let that work.”
11:23 “Evaluate your Social Security claiming strategies because we know that you can start collecting as early as 62 but there are downsides there – your full retirement age, for most of you, is 66 unless you’re born after 1953 and you can take it as late as age 70. Start thinking about Social Security before you even get there because that’s potentially going to be a big chunk of income for you.”
15:20 “Evaluate your savings. If you have $500,000 in savings, you probably should plan not to take any more than about 4% per year. This is a rule of thumb – it’s called the 4% rule… and doesn’t work in all cases…in fact, if you retire younger than 66, you probably don’t want to take 4% because you’re probably going to run out of money sooner.”
22:35 “Pay yourself first – by that, you’re saving first before you’re spending, and the best way to do that is if you have a 401(k) or 403(b) at your work because it comes right out of your paycheck and you never miss it. Not all of you have 401(k)s, so in that case you’ll have to open your own savings account.”
26:06 “Understand tax ramifications. This one is missed a lot because you may not even realize this but all the money that you’ve saved into your 401(k) or your 403(b) or in many cases your IRAs – [when] that money comes out it’s taxed at ordinary income rates which is the same rates you’re used to paying right now.”
33:03 “Get serious about relocation plans. If you plan to move when you retire, find out how much you’ll actually net for your house and how much it will cost to move to your new location.”
34:30 “In some cases it may make sense to refinance your loan – do that while you’re working because you need the income to qualify.”
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IMPORTANT DISCLOSURES:
Pure Financial Advisors is a registered investment advisor. This show does not intend to provide personalized investment advice through this broadcast and does not represent that the securities or services discussed are suitable for any investor. Investors are advised not to rely on any information contained in the broadcast in the process of making a full and informed investment decision.
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
• Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
• Opinions expressed are not intended as investment advice or to predict future performance.
• Past performance does not guarantee future results.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. As rules and regulations change, content may become outdated.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER™ certification is by the Certified Financial Planner Board of Standards, Inc. To attain the right to use the CFP® designation, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. Thirty hours of continuing education is required every two years to maintain the designation.
AIF® – Accredited Investment Fiduciary designation is administered by the Center for Fiduciary Studies fi360. To receive the AIF Designation, an individual must meet prerequisite criteria, complete a training program, and pass a comprehensive examination. Six hours of continuing education is required annually to maintain the designation.
CPA – Certified Public Accountant is a license set by the American Institute of Certified Public Accountants and administered by the National Association of State Boards of Accountancy. Eligibility to sit for the Uniform CPA Exam is determined by individual State Boards of Accountancy. Typically, the requirement is a U.S. bachelor’s degree which includes a minimum number of qualifying credit hours in accounting and business administration with an additional one-year study. All CPA candidates must pass the Uniform CPA Examination to qualify for a CPA certificate and license (i.e., permit to practice) to practice public accounting. CPAs are required to take continuing education courses to renew their license, and most states require CPAs to complete an ethics course during every renewal period.
