Ken: Hi everybody, I’m glad you can join me for this video. Daria is taking a little bit of a break but I’m closer to retirement. I’m closer to retirement age as Daria’s. So what I want to do is talk a little bit about set and I know you’ve read magazines and read books and everybody said, “Alright, you’re over 50 or 55 or 60 or even getting close to that approaching retirement. I know you’re getting retirement tip to death.” Well, we have to tell what we think because we hope it will be helpful and we’ll get you going.
What you do now whether you are 50 or 60 or even older is going to win back for the rest of your life and of course there’s no big secret you’ve heard and you don’t me tell you. We’re all living longer. At age 65, it was gold watch, a belt and some golf clubs, thanks very much. Thanks for coming and enjoy the next six or seven years of your life. Statistically now, at age 60 or 65 enjoy that last third of your life maybe 20 years or more.
So the good news and the bad news is the same when we talk financially. Ee’re living longer. Okay, four step processes and now I’m simplifying it because I want you to feel that is doable. Review the way you are now financially and number one. Where are we? Never mind where we going, where are we?
Number two, set goals. How do we want to live our retirement? How do we want live it at the same standard of living? Do we want to downsize, do we want to use that 70% to 80% of your pre-retirement income that may not work for some people, that’s number two.
Number three, how is going to cost to do to live the way we want to live? What is going to cause to do that? Number four, let’s get the plan together and let’s review it periodically. However all the best laid plans for man, man can go wrong. So I want to give you some traps to avoid as you’re planning for retirement. I know retirement made to some of you because we have a lot of young people, adults that come too and senior citizens. Seems so far away, you’re young’s just saying anybody over 30 I don’t trust. You’re going to see how fast 30 comes.
Traps, too much debt going into retirement, try to get the zero before you get there. Probably it’s going to cost you more in retirement than you think. Not matching employer contributions for heaven sakes and you’re qualified plan. If your employers putting an excess, boy you’d better imagined because it’s free money. Yeah, but I got other stuff—match it. I’m going to trap to avoid paying high banking and investing fees.
Well, you found somebody that can help you, so many in the banks it’s pretty nice and maybe a financial a planning and then maybe nice. Check fees because they can nickel and dime you to death and really hurt your purchasing power in retirement. So do a little homework.
Don’t depend on financial help from your kids. You know your kids are doing so great now and so he’s a dentist, he’s a lawyer, he’s a financial planner and he’s doing great above and they both have jobs, it’s great. Marriage has breakup, businesses go bankrupt. Don’t say the kids are loaded. The kids are doing okay. They’re going to take care of me. You want to look at the other side of that and some kids are going to hate me when I tell you this. Don’t lend a lot of money to your kids, No. Don’t lend a lot of money to your kids that you do expect to get back again. That maybe money you need but then will back to the other one but the kids over there doing. Be careful.
Don’t buy variable annuities that make this a lot of enemies, I don’t care. Don’t buy them. We don’t like them. Don’t buy variable annuities. In retirement especially in our IRA, in retirement the less risk you’re willing to take probably the better. And I just mentioned it before, under estimating your retirement needs. It’s going to cost a little bit more than maybe than you think. Yes, you want a dry cleaning, you don’t have to drive to work and you only need a train passes and you know other expenses launches and stuff, just be careful. It might cause a little bit more than you need.
And last but not the least probably the biggest mistake and we hear this on radio and television all the time. Not taking the time to learn about investing. If you talk with somebody in the bank, you talk with the financial planner and then talk about laying out alternatives to your retirement or even pre-retirement, 20 years pre –retirement.
If you don’t understand what the alternatives are then how you possibly going to work with somebody to work in a plan that makes sense for you? I will guarantee if you spent one hour per week learning about personal financial matters, you’re going to be very, very well off and I promise you that will pay dividends in retirement. Start now okay, all right, okay right now.
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