Important Considerations for Having a Successful Retirement

Joe and Al discuss Chuck Jaffe’s Market Watch article titled “5 Things you Need to Have a Successful Retirement.” This article is chalk-full of eye-opening statistics about retirement readiness and saving. For example, only 58% of workers are confident about having enough money for retirement. If you are part of the population who feels unprepared and nervous for retirement, creating a plan is the first step toward a successful retirement. Joe and Al also discuss the 4% rule and current events regarding the push for an industry-wide fiduciary standard.

3:28 “Once you’re within five years of retiring, it’s a whole new ballgame. It’s an entirely new phase of retirement—the planning and the strategies that you’ve done have to change entirely”

6:09 “There are three reasons you need a retirement game plan: one, it will help you identify risks; two, it will reveal new ways to maximize every nickel you’ve saved; three, you will expose the gaping holes or critical mistakes you’re making right now that could cost you thousands”

14:27 “You always want to plan to live to at least 90 or 95 because life expectancy is pushing out”

16:10 “What the 4% Rule is is that you don’t want to take out any more than 4% out of your portfolio. For example if you have $100,000 saved then you don’t want to take any more than $4,000 out”

17:26 “To make sure your portfolio is structured appropriately, you have to look at the tax consequence when you take those distributions. I believe tax rates can only go one way; they are going to go up and the market’s going to get volatile”

23:06 “The Department of Labor introduced a bill for the fiduciary standard to be in effect across the board”

24:54 “If everything is transparent and you understand how everything works, I think more and more people would seek more advice”

32:20 “More planning doesn’t just lead to more saving; it also breeds confidence!”

35:34 “Seven in ten workers said they could save $25 a week more than they currently set aside” (Source: Marketwatch)

37:45 “A faulty assumption that a lot of people have is that their taxes are going to stop when their paycheck does, but it’s not true; in fact, tapping your nest egg comes with all sorts of new rules and opportunities”

To read Chuck Jaffe’s article, click here