Excellent list. It was the helpful guides like yours that enabled me to plan and enter retirement. I would put items 7 and 8 at the top of the list as, for me, they were key pieces of information to determine when I could support myself.
@@PranaWealth That makes sense! I guess when I approached my retirement planning I had already spent about 20 career years assuming #1-6 were part of a financially responsible lifestyle that is a prerequisite for anyone thinking about supporting themselves without a job. I am glad you listed them individually. My main focus was understanding my annual burn rate and how that would change in retirement (#7 & 8), so I would have an income target for retirement planning. One thing I haven't seen financial planners discuss on RUclips is the importance of risk mitigation in a retirement plan. The best plans can be derailed by life. I put in several "what ifs" into my plan to help avoid or reduce the impact of life's monkey wrenches. Without giving up your trade secrets, it might be nice to touch on the importance of backup plans, for example, when dividends get cut, the market crashes during retirement, or expenses unexpectedly jump.
@@BSGSV -- That's a great idea! I'll add that to my content queue. I'll also have to think about the best ways to tackle these topics in a way that lends itself to making 6-10 minute videos. This is a great idea for a "retirement risk management" playlist... Give me a few weeks to think about the best way to tackle this. Great idea!
To me they're definitely is a reason to have separate brokerage accounts. 1. SPIC limit for protection 2. Incase my account gets hacked. I have access to money till I fix it This just off the top of my head
I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement.
You are right. I also started my journey towards actualizing Financial independence. I am sick off earning from only one source especially 9-5daily. But I am having a tough time finding a good investment adviser. Seeing your testimonies, I believe that you achieved this through a good tactical means. I hope you don't mind sharing information on how you made it possible?
@@jarrettmacurdy3612 I invest across the top markets but not by myself tho. i follow the guidelines of Alexandra Diana Jose. you might have heard of her.. I can correctly say she’s worth her salt as a investment advisor as her diversification skills are top notch/ I say because i see that in her results as my portfolio grows by averages of 30 to 5O% on a monthly basis, unlike i can say for my IRA which has just been trudging along. my portfolio just mirrors what her place and not just on some particular industries of my choosing
@@davidreus9321 That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
@@jarrettmacurdy3612 She is easy to find , make a quick research of her on the internet with her name Alexandra Diana Jose . She works with anyone independent of their location.
I'd always be willing to do this for the long-term as long as I’m assured of success. I think I've heard Alexandra Diana good mentioned a few times before and I reckon this number of people talking about one person can't be wrong about their experiences.>
When you take into consideration your age, annual 190k net income & those accumulated savings, retirements funds, etc. it appears like you live well above your means. Personally, I'd be more concerned with my retirement plans.
You should start looking for the smaller house you want to retire in and be ready to put your house on the market when you find it. I don't know what it cost you to live a year but you need to put together a budget and live by it. If you can’t, go see a financial advisor. If you are are bringing home $190K a year, live on half that and take the other half and pay off your debts. Once debts are paid off, put half of that $190K in savings and income type investments.
@@kellyhoang1483 I’ve been investing over 5 years and the best advice I have found comes from Jennifer Elizabeth Boland who has several free and nominal cost services that have this type of information.
Remember, retirement is a continuum . Nothing magical happens on your first day. You will have happy days and sad days. Bored or busy days. Unexpected expenses and little windfalls. Feeling great and feeling sick. ...Retirement is great and you do need to plan. But there is no cliff on the last day of work. Like Old Man River, life will keep rolling along.... for example, it is a good idea to pay off your vehicles prior to retiring. But you will probably buy other vehicles during the retirement.
Great video. Thanks for posting it. I agree with all points and would add one. Get the kids off your budget or at least have a clear plan to get them off the budget. For the few months before the pandemic when both of our kids were out on their own our food bill was cut in half and utilities were also much lower. Eating out and take out food costs were far less than half. The kids seem to eat well.
Great point, @Andrew ! At some point, the kids need to get off the payroll and stand on their own feet. Although, that can be tough. It's hard out there to start out as a young person and it's easy to want to help them out as much as you can. That being said, my parents told me they loved me, but I wouldn't be allowed to move back in! Kinda forced us to make it work! Of course, that was many, many years ago...
@@PranaWealth Your parents gave you a great start in the real world. I went in the opposite direction. I told my kids they are always welcome back no matter how bad they screw up. My point was to encourage them to take risks (start a business, take the dream job, and so on) but I told them the offer had no restrictions. I made the offer when I was fairly certain they would not abuse it. My parents did the same for me. I moved out at 29 after completing graduate school and saving for a house. It would not have been possible without my parent's support. I never realized the cost of having me in the house until I saw my own bills with and without the kids. I will let you know in 20 years if my plan works out.
@Andrew -- that's a really interesting take. I really like the idea of encouraging them to take risks. It's probably a good way to get them out of a scarcity mentality. Great take on this!
I think that you should cover student loans, if you wouldn't mind 😃! I mean everyone has heard that credit card debt is bad but these days but student loans are a boat anchor for many now a-days.
Taxes shouldn't surprise you in retirement. They should be part of your long-term plan way before retirement. You should be mapping out your taxes atleast two decades before retirement
True, John! That being said, not everyone knows to look down the road at IRA distributions, especially RMDs. I don't want to assume that everyone knows.
#9 is so important! Finding a new creative activity to learn worked for me. Being a very active person, having something new to focus on really helped establish a routine while finding my footing.
Awesome, Rex! What's the creative activity that you landed on? I worked with a gentleman years ago who got DEEP into woodworking. I think those types of things make a huge difference and keep you from aging. Sitting around watching TV is not something I recommend!
@@PranaWealth Karate. 🥋 Went from white to gold now green belt. On my journey to red belt (1 year) and eventually to black belt (takes 3 years). I'm very competitive and like to challenge myself. No health or joint issues thank God. Btw - happy Easter and holy week my friend.
Great video!👍 All really are things to think about. Healthcare costs, budget and taxes can be kind of easy to come up with; healthcare costs before Medicare can be very expensive depending on how much money is needed to live on. I looked into it since I am turning 63 and thought about retiring, to be totally prepared for the worst case scenario both my wife and I having a major illness, the premiums and out of pocket was about $32,000 a year. It may never happen but just my opinion you need to budget for it, Medicare costs can be found online. I tacked on medical costs and taxes into my retirement budget as part of our living expenses. Knowing how much you will need to live on can give you the amount of taxes that'll be paid. Long term care is a major concern and not sure how to deal with it at this point! Keep up the great info!
Thanks, @Vinny G ! Yes, those healthcare costs can get out of control. That's one of the reasons I'm a big fan of those Medigap policies -- they at least put a cap on your out-of-pocket expenses while Medicare alone does not. It's a good thing to be prepared, just in case! Thanks for watching and commenting, my friend! 🙏
@@PranaWealth I was completely surprised at how much it was when you go to the healthcare marketplace! At least in NJ. Paying possibly $32,000 in premiums and co-payments at my salary and budgeted living expenses is a huge amount and a no go ... I was expecting around $20,000. i believe in capturing all expenses in a budget, even if it's off by the actual amount at least you captured something. I put dog food, Christmas trees (when we bought live trees in the past) and income tax preparation into the budget! It's also true that some budgeted item may come in for less and you have extra money there, my gas and electric budget is like that. Yes, I am looking at the Medicare things now ... Plans A, B, D and I'm leaning toward G; my sister has N but I'm not too sure why. Maybe, just maybe the government will get together and help seniors by closing up that doughnut hole in prescriptions. Again, I appreciate these videos, thanks!
Anytime, Vinny! Although I wouldn't hold your breath on the government closing those donut holes anytime soon. Plan G does seem to be the most popular, by the way.
Why do professionals still recommend LTC when they know most people can’t afford it and companies barely offer it? Maybe financial professionals should exercise discernment when bringing up this topic and find new solutions for the average person.
@Mitzi73 -- great question. It would be a disservice if we didn't at least bring up the topic. One of the old firms that I worked for before starting Prana used to make us have these conversations and document them -- they saw not having the LTC discussion as a legal and compliance risk. That's why you hear it a lot! I'm neutral on whether you actually buy a LTCI policy or not. I'm a fee-only planner, so I don't get any commissions on selling products like LTCI policies. However, I certainly want everyone to know they exist and plan for things one way or another. Does that make sense?
haha pay off just credit card debt?? pay off ALL debt, ALL. and never ever carry credit card debt ever in your life, if you're in it, get out of it. it's the stupidest debt you can have, learn to budget.
Are there any "musts" that I left off this list? Let me know what you think.
Excellent list. It was the helpful guides like yours that enabled me to plan and enter retirement. I would put items 7 and 8 at the top of the list as, for me, they were key pieces of information to determine when I could support myself.
@@BSGSV -- thank you! 🙏 I think I was using 1 through 6 to build up to 7 & 8 -- they're definitely the key to all of this. Congrats on retirement! 🙌
@@PranaWealth That makes sense! I guess when I approached my retirement planning I had already spent about 20 career years assuming #1-6 were part of a financially responsible lifestyle that is a prerequisite for anyone thinking about supporting themselves without a job. I am glad you listed them individually. My main focus was understanding my annual burn rate and how that would change in retirement (#7 & 8), so I would have an income target for retirement planning. One thing I haven't seen financial planners discuss on RUclips is the importance of risk mitigation in a retirement plan. The best plans can be derailed by life. I put in several "what ifs" into my plan to help avoid or reduce the impact of life's monkey wrenches. Without giving up your trade secrets, it might be nice to touch on the importance of backup plans, for example, when dividends get cut, the market crashes during retirement, or expenses unexpectedly jump.
@@BSGSV -- That's a great idea! I'll add that to my content queue. I'll also have to think about the best ways to tackle these topics in a way that lends itself to making 6-10 minute videos. This is a great idea for a "retirement risk management" playlist... Give me a few weeks to think about the best way to tackle this. Great idea!
To me they're definitely is a reason to have separate brokerage accounts.
1. SPIC limit for protection
2. Incase my account gets hacked. I have access to money till I fix it
This just off the top of my head
I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement.
You are right. I also started my journey towards actualizing Financial independence. I am sick off earning from only one source especially 9-5daily. But I am having a tough time finding a good investment adviser. Seeing your testimonies, I believe that you achieved this through a good tactical means. I hope you don't mind sharing information on how you made it possible?
@@jarrettmacurdy3612 I invest across the top markets but not by myself tho. i follow the guidelines of Alexandra Diana Jose. you might have heard of her.. I can correctly say she’s worth her salt as a investment advisor as her diversification skills are top notch/ I say because i see that in her results as my portfolio grows by averages of 30 to 5O% on a monthly basis, unlike i can say for my IRA which has just been trudging along. my portfolio just mirrors what her place and not just on some particular industries of my choosing
@@davidreus9321 That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
@@jarrettmacurdy3612 She is easy to find , make a quick research of her on the internet with her name Alexandra Diana Jose . She works with anyone independent of their location.
I'd always be willing to do this for the long-term as long as I’m assured of success. I think I've heard Alexandra Diana good mentioned a few times before and I reckon this number of people talking about one person can't be wrong about their experiences.>
My Wife and I owe $87,000 on our mortgage and have $400,000 in savings. Should we sell our home now to prepare for retirement?
When you take into consideration your age, annual 190k net income & those accumulated savings, retirements funds, etc. it appears like you live well above your means. Personally, I'd be more concerned with my retirement plans.
You should start looking for the smaller house you want to retire in and be ready to put your house on the market when you find it. I don't know what it cost you to live a year but you need to put together a budget and live by it. If you can’t, go see a financial advisor. If you are are bringing home $190K a year, live on half that and take the other half and pay off your debts. Once debts are paid off, put half of that $190K in savings and income type investments.
Please I need a guide, how were you able to achieve this amount?
@@kellyhoang1483 I’ve been investing over 5 years and the best advice I have found comes from Jennifer Elizabeth Boland who has several free and nominal cost services that have this type of information.
@@berwickperu7683 oh Great
Remember, retirement is a continuum . Nothing magical happens on your first day. You will have happy days and sad days. Bored or busy days. Unexpected expenses and little windfalls. Feeling great and feeling sick. ...Retirement is great and you do need to plan. But there is no cliff on the last day of work. Like Old Man River, life will keep rolling along.... for example, it is a good idea to pay off your vehicles prior to retiring. But you will probably buy other vehicles during the retirement.
I love this! Great comment, @V p ! Life will always throw you a curveball now and again.
Great video. Thanks for posting it. I agree with all points and would add one. Get the kids off your budget or at least have a clear plan to get them off the budget. For the few months before the pandemic when both of our kids were out on their own our food bill was cut in half and utilities were also much lower. Eating out and take out food costs were far less than half. The kids seem to eat well.
Great point, @Andrew ! At some point, the kids need to get off the payroll and stand on their own feet. Although, that can be tough. It's hard out there to start out as a young person and it's easy to want to help them out as much as you can. That being said, my parents told me they loved me, but I wouldn't be allowed to move back in! Kinda forced us to make it work! Of course, that was many, many years ago...
@@PranaWealth Your parents gave you a great start in the real world. I went in the opposite direction. I told my kids they are always welcome back no matter how bad they screw up. My point was to encourage them to take risks (start a business, take the dream job, and so on) but I told them the offer had no restrictions. I made the offer when I was fairly certain they would not abuse it. My parents did the same for me. I moved out at 29 after completing graduate school and saving for a house. It would not have been possible without my parent's support. I never realized the cost of having me in the house until I saw my own bills with and without the kids.
I will let you know in 20 years if my plan works out.
@Andrew -- that's a really interesting take. I really like the idea of encouraging them to take risks. It's probably a good way to get them out of a scarcity mentality. Great take on this!
I think that you should cover student loans, if you wouldn't mind 😃! I mean everyone has heard that credit card debt is bad but these days but student loans are a boat anchor for many now a-days.
Taxes shouldn't surprise you in retirement. They should be part of your long-term plan way before retirement. You should be mapping out your taxes atleast two decades before retirement
True, John! That being said, not everyone knows to look down the road at IRA distributions, especially RMDs. I don't want to assume that everyone knows.
Do healthcare come with a pension?
Not necessarily. Some companies may offer retirement healthcare benefits for retired employees under age 65, but those are increasingly rare too.
#9 is so important! Finding a new creative activity to learn worked for me. Being a very active person, having something new to focus on really helped establish a routine while finding my footing.
Awesome, Rex! What's the creative activity that you landed on? I worked with a gentleman years ago who got DEEP into woodworking. I think those types of things make a huge difference and keep you from aging. Sitting around watching TV is not something I recommend!
@@PranaWealth Karate. 🥋 Went from white to gold now green belt. On my journey to red belt (1 year) and eventually to black belt (takes 3 years). I'm very competitive and like to challenge myself. No health or joint issues thank God. Btw - happy Easter and holy week my friend.
Nice! Martial arts really are so good on so many levels. Good luck on getting that red belt!
Happy Easter, my friend!
The ironically named "Affordable Care Act."
Get a health check-up and have a plan to deal with any health issues.
Always a great idea, Craig. I think covid threw a wrench into everyone's routine doctor visits. Go get yourself checked out, everyone! 🙏
Great video!👍
All really are things to think about. Healthcare costs, budget and taxes can be kind of easy to come up with; healthcare costs before Medicare can be very expensive depending on how much money is needed to live on. I looked into it since I am turning 63 and thought about retiring, to be totally prepared for the worst case scenario both my wife and I having a major illness, the premiums and out of pocket was about $32,000 a year. It may never happen but just my opinion you need to budget for it, Medicare costs can be found online.
I tacked on medical costs and taxes into my retirement budget as part of our living expenses. Knowing how much you will need to live on can give you the amount of taxes that'll be paid. Long term care is a major concern and not sure how to deal with it at this point!
Keep up the great info!
Thanks, @Vinny G ! Yes, those healthcare costs can get out of control. That's one of the reasons I'm a big fan of those Medigap policies -- they at least put a cap on your out-of-pocket expenses while Medicare alone does not. It's a good thing to be prepared, just in case! Thanks for watching and commenting, my friend! 🙏
@@PranaWealth I was completely surprised at how much it was when you go to the healthcare marketplace! At least in NJ. Paying possibly $32,000 in premiums and co-payments at my salary and budgeted living expenses is a huge amount and a no go ... I was expecting around $20,000.
i believe in capturing all expenses in a budget, even if it's off by the actual amount at least you captured something. I put dog food, Christmas trees (when we bought live trees in the past) and income tax preparation into the budget! It's also true that some budgeted item may come in for less and you have extra money there, my gas and electric budget is like that.
Yes, I am looking at the Medicare things now ... Plans A, B, D and I'm leaning toward G; my sister has N but I'm not too sure why. Maybe, just maybe the government will get together and help seniors by closing up that doughnut hole in prescriptions.
Again, I appreciate these videos, thanks!
Anytime, Vinny! Although I wouldn't hold your breath on the government closing those donut holes anytime soon. Plan G does seem to be the most popular, by the way.
Why do professionals still recommend LTC when they know most people can’t afford it and companies barely offer it? Maybe financial professionals should exercise discernment when bringing up this topic and find new solutions for the average person.
Maybe they should teach how to “kill your self but still get your life insurance?”
@Mitzi73 -- great question. It would be a disservice if we didn't at least bring up the topic. One of the old firms that I worked for before starting Prana used to make us have these conversations and document them -- they saw not having the LTC discussion as a legal and compliance risk. That's why you hear it a lot!
I'm neutral on whether you actually buy a LTCI policy or not. I'm a fee-only planner, so I don't get any commissions on selling products like LTCI policies. However, I certainly want everyone to know they exist and plan for things one way or another. Does that make sense?
haha pay off just credit card debt?? pay off ALL debt, ALL. and never ever carry credit card debt ever in your life, if you're in it, get out of it. it's the stupidest debt you can have, learn to budget.
Always laugh when I hear Medicare for all. Not a good way to go