Your Retirement Planning [2020]
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- Опубліковано 15 вер 2024
- COVID-19 has affected just about every aspect of our lives: our jobs, our health, our family and social interactions, children’s education, and leisure time.
But what has it done to retirement prospects? Not surprisingly, it has hurt them.
According to a survey of American workers with qualified retirement savings accounts, “...almost half (49%) had experienced a reduction in work income through job loss, or decrease in hours and/or a pay cut”.
Also, “...workers who lost their jobs or experienced a drop in income due to the COVID-19 pandemic were at least twice as likely to take money from their qualified retirement savings accounts as those who weren’t impacted.”
Retirement plans for older workers are particularly stressed. Not only do they have less time to make up any shortfalls, but seniors are more at risk from COVID-19 than younger people, so returning to work is more problematic. According to the Urban Institute, the combined rate of unemployment and underemployment for workers over 65 was 26% recently, much higher than for those between 25 and 54, and the largest gap on record.
How can we improve our retirement plans to withstand the current shock of this pandemic and future crises, which will inevitably occur?
This week we’ll be joined by one of WEALTHTRACK’s long-standing and most popular guests, retirement expert Mary Beth Franklin. Franklin is a Certified Financial Planner, award-winning personal finance journalist, Contributing Editor at InvestmentNews, and Author of “Maximizing Social
Security Retirement Benefits.”
Franklin explains what the pandemic has revealed about the state of retirement planning in the U.S., and how to best manage your own retirement in the current situation.
WEALTHTRACK # 1711 originally broadcast on September 11, 2020
More Info: wealthtrack.co...
Maximizing Social Security Retirement Benefits: www.investmentn...
Surveys & Articles:
www.limra.com/...
www.nytimes.co...
![Social Security Benefits: More Valuable than Ever [2020]](http://i.ytimg.com/vi/oNlMlyAnXrk/mqdefault.jpg)
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Love these types of conversations. I am targeting my retirement for 15 years from now and am binging on tax and retirement videos. The future isn’t guaranteed but at least I will have some financial literacy.
Interesting video! We are in our 80's and feel better than ever! Still work for a strong body and a calm mind. Doing some research for our tiny new healthy-aging advice channel for people of all ages. Learned a lot. Keep it going!
Guest is very articulate. I appreciate her important points about financial literacy and the importance of saving cash.
According to Robert Kiyosaki savers are losers, hahaha!
@@luisasterioquerubin6829 You don't really take him seriously, do you?? His so-called "advice" is dangerous to financial health. Except his own, from peddling all that snake oil.
@@murarikaushik33 Robert should qualify his advice, counting risk.
I always lived well below my means,...never spent money on frivolous junk and recently retired at 60. I don't have care in the world,....and I am not apologizing to anyone.
How much can you live on now??
@@y.r.9401 It costs me $600 dollars a month as my share of an apt outside of Baltimore with my girlfriend. I have 7 years of living expenses in savings and 700k in my 401k. I will take S.S in 23 months which will be $1600 a month.
@@Tonymanero1960 WOW. That's awesome! I need to start putting away more but can't yet bc of this pandemic!
Stay active and healthy. Enjoy the fruits of your labor! 👍👍👍
@Marco Deo Marco,...the $600 a month is my 1/2 share of a $1200 a month apt that I split with my girlfriend.,...and my other expenses are about $400 a month to equal about the same $1000 a month expense like your friend. I also get my health insurance with a subsidy thru the Maryland version of Obamacare/ACA. That costs $133 a month and I don't have a car payment. I drive an old 1996 Lumina which I have had for over 10 years. Sorry if my original post was confusing.
Spot on advice as usual. While painful to pay the tax, I’ve converted to my Roth the last 3 years and plan to continue until age 72. Each year I set my target dollars, wait for a dip in the market and initiate the conversation.
Like most things in life success comes from planning and timing. We are both 73, debt free, driving new cars and enjoying life. Am I concerned with my investments ? Sure I am, but I never lose sleep over it. We have always lived below our means so we can enjoy whatever years we have left. I have encouraged our children to invest and be judicious in spending. So far they are ahead of where we were at that age..
I think a good subject for them to cover is investment strategies like the All Weather and Permanent Portfolio approaches.
I've looked into that and there are some market conditions it would have done well and other market conditions where you would have lost a little money. There is less volatility with that approach, but you can experience some losses. I think some kind of balanced approach may make sense. Spread your money out in all assets including some real estate or REITS along with a bond ladder. Get your income needs from the bond ladder and use the rest for some growth. Once a year rebalance your growth part selling off some of the assets that gained some profits and put it into the stuff that has declined, keeping the overall balance the same. The stock portion should be dividend and high quality stocks. I would stay away from the high flyers.
Great advices!
Love Your Show, Especially having Mary Beth as a quest.
I wish she was my financial advisor!
@Marco Deo THANKS! I was going to buy some for my retirement mom! ;)
@Marco Deo Where can I earn 10plus %!?
@Marco Deo at what percentage should i sell and buy to rebalance my stocks? I have one +90% while the others at -40 30%
@Marco Deo sadly we dont have tech stocks here. My port are mostly legacy stocks but give decent dividends.
I love annuities. I have some of the newer financially engineered annuities. I'm younger but one thing about my annuities is I will collect a monthly annuity payment based off the total principle of my investments. I also get to collect my total principle and reinvest it. It is a great plan.
Where or who did you buy them from & what kind!?
@@guillemodred3938 Yes, I have those same concerns. It's kinda like buying gold through a fund; do they really take the money and buy gold and store it for you. People are so crooked you can't count on it. My mom had a life insurance policy she paid into for decades; then she was notified that the company was going out of business. Always be very wary of "I'll gladly pay your tomorrow for a hamburger I can have today."
Yes annuities are great.......... for the salesperson making the commission and raking in the fees. They are not a good choice for just about anyone. Maybe an SPIA might be a lazy way of creating a stream of income but it probably isn't the best option.
How much can most people live on in their retirement age requirement of 65 if they have no debt?
Unless you plan to spend money on travel and other things, add up your basic required expenses. That's the number. I've heard it said that you need to make 70% of your current working income to live comfortably in retirement. I'd say that is a high number, because you are less likely to spend money when you're older.
Planing?
Annuity
Why would anyone buy an annuity?
The money paid to you by the annuity is taxed, I believe,
So you given up a huge amount of your retirement savings to purchase an annuity just for a portion of what is paid out to go to taxes.
I would not pay for anything that would result in me having to pay more taxes.
My social security will be taxed, RMD’s will be taxed, pension will be taxed. Rental property income taxed.
Every dime I make now either goes to ROTH 401k or to my whole life policies.
many people do not believe in the delay gratification strategy and planning
Hi I am 65 and tried to get my late husbands survival benefits and told I wasn't married long enough to collect survivors benefits.
Excellent interview and information, but I'd think about annuities very carefully. They may be something to consider, but the best thing I heard was limiting investment in annuities. Staying active and healthy in your later years is another important thing to do.
@Marco Deo I'm leaning your way, Marco. These financial devices that are run by somebody else are subject to just as much risk as the market maybe even more. Who remembers Bernie Madoff?
@Marco Deo I disagree about gold. There are many reasons to own gold. Allocating about 10-20% of a portfolio in gold is good advice these days. It is a store of value when cash is becoming funnier money (massive money printing). You can't print gold. It is a big hedge against inflation and does very well in down markets and during crises. I can remember when gold some years ago was $489/oz. It's close to $2,000/oz. now. Anyone who bought gold at the time would be very happy with such a return, and it's there when needed! Since gold fund managers can't be trusted, the best way to own gold is physically. In the end, asset allocation is the way to go to create balance. When times are good, stocks will do well. When times are bad hard assets and bonds will do well. You also need what they talked about, reserves that get you through the gaps between the good and the inevitable bad markets and personal emergencies like unemployment. For money to live on, you don't want to be forced to sell your index fund position if the stock market tanks. Your other assets are there to keep you afloat until things recover. Cheers, mate! 👍👍👍
7 yrs.widow He was much older .He got hit by a car.died 6 mths. After hospital care.Together 37 yrs. Moved toP.R..I was uneducated. COULDN'T SPEEK SPANISH BUT WORKED WITH HIM PHYSICALLY BUT HE NEVER PAID ME.I BECAME INCAPACITATED BUT WAS ONLY57 YRS OLD. WE LIVED POOR.WE ARE MARRIED. AS SOON AS HE DIED I STARTED SS. WHAT HAPPENS IF I REMARRY TO SOMEONE WHO RECEIVES MORE THAN ME BY 400.00 I ONLY RECEIVE LESS THAN 500.00 . HOW DOES THIS AFFECT ME? WILL I RECEIVE MY CK. SEPARATELY IN CASE THIS MARRIAGE DOESN'T WORK OUT? I STILL LOVE MY HUSBAND .
But my new love is very humble.
I'm 67 Still working 45 Years working.. Planing to Get my Full Benefits . But Social Security why are they giving me a round around ... I Need Help Who can I Talk to ..... How can I go by getting my money. .. do I need an attorney .
to find out what you need in retirement is simple, take your NET take home ( after ALL deductions), and find out what you need to save/invest to keep or come close to that income...one key is to be debt free, you don't need millions in investments, that is a myth...if you work longer that is less time to enjoy in retirement, obviously if you have to keep working because you can't retirement thats on thing, but to keep working because your scared, just do the math
It cost 3K to stay in a very nice retirement community - in Stockton, CA (2020)! Food is included 😁
Yeah, but you're in Stockton. It's not exactly like being in Maui.
I have a question for Mary Beth, my apologies if I missed it, but can I start by collecting my SS at FRA while my ex-husband is still living, then if/when he passes away switch to survivor benefits? I've been hoping/planning to continue working until my 70's to collect my maximum benefit amount, but my ex-husband is collecting more than my maximum by about $1K/mo. He was a much higher earner with a much longer work history while I was a stay at home mom then had to start out at entry level wages after the divorce.
There are folks who because of circumstances have not been able to be in a good financial place there are others who have chosen to be in too much debt and buy all the toys
The next 5 years will be HORRiBLE in performance. So if you're going to retire in the next 5 years, adjust your association wisely.
So our economy is a snake eating its tail. If the consumer is using money that the govt is giving them to prop up the economy.
Some very disturbing comments from the interviewee:
Social Security is many peoples only source of money in retirement. If that is true than you did a poor job planning; it was not created to be this.
Low income workers "can't" save for retirement. Wont save isn't the same as can't save. It is a matter of delaying gratification to achieve a goal. I don't have a cell phone, don't eat out and live below my means and save and invest everything I can.
Annuities are rarely a good option for anyone. An SPIA might make sense for a small group of lazy conservative people. Those esoteric annuities tied to investments are confusing and have a huge fee load.
Annuities are not an investment they are a bet by the insurance company that you are going to die before you recoup all the money you sunk into it. Guess what the insurance company ends up winning most of the time. Even a conservative balanced portfolio would outperform an annuity (and you don't lose access to the principal).
What other annuity company you recommend?
I have annuity for myself and my wife for 10 years, I totally regret it (many of those years, they gave me only 1% despite the market was up 10%). I just cancelled them early this year, and that was the best decision I made. There are many other much better investment choices than annuity out there.
It is a black box management, there is no information on why they gave me 10% for 2-3 years and then 1% on few years despite the sp500 steadily above 8% or more each year. I called and they don’t know what to tell me
Worse part of it, you got a bigger penalty the early you withdraw, that is why I wait till it pass 9 years to cancel both of them. Trust me, precious metal is where everyone should head into in the next 5-10 years. I got doubled my investment from my annuity withdraw just within a year!!!!
Pls check carefully. My 401k has “Wellsfargo precious metal fund Class A” , see if you can find it. If not, pls move to treasurer bond or cash before the stock market crash (possible between Nov to early next year). Then move back in Sp500 right at the bottom of the bust. I have a list of good utuber I learned in the past years, I will get back to you tomorrow. We need to understand what the fed is doing and how the economic cycles response to it so we will be immune From this mess that FED did to us. Next year is gong to be worse then the 1930 Great Depression
What are all these US debt slaves going to do when they reach retirement age? Most will have to work until 80.