Why the 80% Rule for Retirement Income is Mostly Wrong.
Wise Money Retirement
One of the primary goals of retirement planning is to figure out how to use your retirement assets in the best way to generate the income you’ll need after you stop working. But to do this, it is important to have a pretty good idea as to the amount of income you’ll actually need. Estimating this is not a simple matter because there are so many things to consider. How much income will you need to pay your bills and essential living expenses? What amount do you want to spend for travel, pursuing hobbies and living your retirement dreams? How might your needs for income change over time as...
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Safe Ways to Balance Risk and Reward for more Retirement Income
Wise Money Retirement
There is a very definite and unbreakable connection between risk and reward. Choose a financial instrument that helps provide greater potential returns, and you inevitably increase the degree that your money will be subject to investment loss. If instead you chose safety and protection over growth, expect the compromise of lower rates of return. Many retirees become frustrated as they search for the “perfect” investment that breaks this rigid risk and reward connection. Any time you hear of people getting taken advantage of and becoming the targets of fraud and financial abuse, it is...
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4 Steps to a Better Retirement Plan
Wise Money Retirement
4 Steps to a Better Retirement Plan Do you have your retirement date set, or have you already retired? And how about your financial plan…. Do you have things squared away? Or are you still working on putting all the pieces together? Creating a financial plan for retirement can be a tough job. There are a lot of moving parts and a ton of uncertainty that you’ll have to consider. We want to help you with some easy tips that you can follow to create a better retirement plan. These 4 areas of retirement planning are all areas that we see a certain level of misunderstanding. When we consult...
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Strategic Roth IRA Conversions
Wise Money Retirement
Converting to a Roth IRA might be a key to help your retirement dollars last longer.
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Don't Out Live Your Money With These Helpful Tips
Wise Money Retirement
Tips for Making Sure You Won’t Outlive Your Money.
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Social Security Millionaire
Wise Money Retirement
Maximize your future Social Security benefits to enjoy a more confident retirement.
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How to have a "Tax Wise" Retirement
Wise Money Retirement
It’s not how much income you have, but how much is left to spend.
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3 Essential Elements to a Successful Retirement Plan
Wise Money Retirement
Make sure that you have a plan that addresses these three key areas of retirement planning.
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Could Your Financial Behaviors Wreck Your retirement?
Wise Money Retirement
Could Your Financial Behaviors Wreck Your retirement? In recent years, there has been a huge push in the field of “behavioral finance.” That is, what types of behaviors do people that can affect one’s portfolio. That’s what we are going to talk about on the today’s show. We're going to discuss if it's possible that your financial behaviors could affect your retirement. To dive in deeper we’ve outlined 4 biases people tend to run into! More specifically, the bad behaviors that could impact your financial life. Believe it or not, science has shown there are certain human...
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6 Common Retirement Misconceptions
Wise Money Retirement
6 Common Retirement Misconceptions Planning for major life events can be very exciting, but it can also be very stressful. These types of events should require some deep thought and a thorough planning process. Some people enjoy the planning process and take the time to do so, while others do not spend as much time preparing. It is important to plan properly in order to be successful. Today, we want to discuss the importance of retirement planning, and how to avoid the common misconceptions many people make while planning for retirement. Misconceptions are common in every area of life, and...
info_outlineHow to have a "Tax Wise" Retirement
Today, we are talking about taxes and how they can lead to some surprises after retirement. This can be especially scary for anyone nearing retirement. Being “tax-wise” is no longer a concern for only the wealthy. Most fear that increased tax rates are looming on the horizon. That's why it's important understand tax diversification. .
Lots of people believe their personal tax bracket will be lower after they retire. However, it can surprise you that your income, after taxes, is less than you expect. Even, perhaps less than what you need. From a risk management perspective, you'll need to diversify to deduce your exposure to the risk. Creating a tax-wise strategy starts with understanding tax diversification
The "One-Trick-Pony" Approach
When looking at different retirement income sources there are a variety of financial vehicles. While a variety could result in “tax-wise” income strategies, most people aren’t tax-diversified. Which is why the “One-Trick-Pony Approach” has been coined.
Most people reach retirement with 95% or more total savings in a 401(k) or IRA. That is where the “one-trick pony approach” to retirement savings comes into play. This is the case because we are “rewarded” with the postponed taxes. Don't forget that these taxes are only postponed. When you retire, 100 percent of this money will be subject to taxation. Traditional retirement planning has dictated that it is OK to postpone taxes. This is because you will probably be in a lower tax bracket after you retire. Tax diversification starts by considering how investment accounts are taxed. Then create many income streams with a tax-efficient withdrawal strategy.
To understand this, it's important to look that most contracts can be in one of three categories. It might be easier to think of these categories as buckets that you might use to hold your retirement assets.