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4 Retirement Tools for Planning

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How much money do you actually need to retire?

Some retirement calculators say it takes an estimated 1 million dollar retirement nest egg to bring in an average of $40,000 a year as a retirement income. But, in fact, just last month, through research from a science journal published by the Max Planck Insititute for Demographics, the probability of living to 110 years has just increased significantly. 

Nevertheless, what does that have to do with you, and how much do you actually need to retire? I will address my opening statement first. I have been helping people plan for retirement for over two decades, and I must admit that while most have saved for retirement, less than 15% have amassed a million-dollar retirement portfolio.  Does that mean that the existing 85% will live below the poverty line in retirement? I am unsure that this will be the case as some still have pensions, annuities, and untapped real estate wealth not primarily counted on for retirement that may help fill monthly income buckets.

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(Sneak Peek at Episode 26 | “Finding your retirement number“) From our Retirement Podcast

My second statement, however, does have larger implications on your retirement savings than you may think. One of the base factors for determining how much money you will need is how long you will need it. The financial planning rule of thumb has always been on average of 20 years. The supporting data shows that if you retire at age 65, you will live another 20 years based on a life expectancy of 85 years old. Depending on what retirement calculator you use, the 20-year number may already be incorporated in the formula

The tools we use over at myretirementexit.com help with that determination because we can enter this information manually.  When looking for online retirement calculators, this number must be flexible on the back end.  The last thing you want to do is run out of money from your retirement buckets because of a formula miscalculation. 

How to make adjustments on your own with retirement tools

One of the biggest problems pre-retirees have is trying to make adjustments on their own.  We created myretirementexit.com as a platform for retirees who want to make adjustments on their own.  We proud ourselves on empowering our users and readers with educational retirement tools.  We believe your working years are so fluid that you could be working to pay bills off today, and tomorrow you could be forced to retire because of health reasons.  The days of expensive advice previously reserved for the wealthy have changed.  You can do it yourself and occasionally add in a little inexpensive professional advice to see if your compass continues to align with your destination and goals.  We create one retirement tool called retirementchat.com just for this reason.  To all retirees to have an inexpensive way to check-in for advice.

I also believe that trying to manage your own retirement portfolio can be just as challenging.  The internet is full of websites and retirement calculators to help guide you on your journey so take advantage of them at every opportune time.  I personally think you can make adjustments on your own with the right guidance. Therefore, I created two more free retirement tools for you to use to get you off to a great “do it yourself” (DIY) start.  One of the tools you can access by simply going to YouTube and viewing this quick 8-minute retirement video.  It is a video created for a person planning for retirement and introduces one simple “DIY” strategy.  The next free retirement tool is a retirement webinar called the 60-minute retirement.  All of the aforementioned retirement tools were created to make adjustments on your own with no help from an advisor.

  

Get an Assessment today not tomorrow

People I meet at most of my live workshops, like Ms. Debra Turner or Andres Rosario, will tell you firsthand how I lay out in my retirement planning workshops the importance of getting an assessment as soon as possible.  What I have discovered over the last 20 years is that you should not run from retirement statements.  Your statements tell a story of your journey and essentially tell you where you should be stopping along the way to get gas or snacks.  Okay, bad metaphor during a pandemic; nevertheless, the same principle applies.

You need to get an assessment as soon as possible to know what adjustments have to be made.  You can make adjustments that will show up in your retirement plan in less than three months.  For example, on Episode 19 of my “Getting to Your Retirement Exit” podcast, I shared three retirement moves you should make today.  I shared that possibly shifting to a Roth IRA strategy could position you well against changing tax laws due to the covid 19 pandemic.  I also recorded a must-see follow-up video entitled a Roth IRA vs. Traditional IRA. Knowing what you have to work with today is much better than finding out tomorrow when it is too late to make adjustments.  Get a free assessment using another one of our free retirement calculator tools to find out where you are at.

Stop listening to friends and co-workers

The last tip I would like to share is pretty much self-explanatory.  This statement may be a little put off by a few, but in all of my years of getting people to their retirement exit, please pay close attention.  Every single person who has ever saved or planned for retirement has their own investment DNA.  Let me explain further.  Every person who has ever paid payroll taxes as an owner or employee has their own retirement DNA.  The co-worker sitting in the cubicle or in the breakroom has a different retirement objective than you do.  They may have only 20 years left on their mortgage versus your 20 years.  They may have a rare medical condition, and you may not have any medical challenges.

retirement tools to stop listening to friends

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My point is you are wasting your time trying to figure out what your friends are doing towards retirement.  Sure, you may both qualify for a pension at a certain age, but there are more than 3 dozen variables that will never match in your households.  Another reason why you should never listen to friends and co-workers is because you all have different risk tolerance.  When I first married my wife, I looked at her retirement portfolio because I am an expert, right? She had her entire portfolio in cash and bonds earning on average 3-4% annually.  She had an entire retirement portfolio with no growth potential.  In fact, she was losing money every year because inflation was averaging 2.7%.  After expenses and taxes, she was losing money, and she still did not want me to make any adjustments.  Why?  Not that she did not trust me, but she has her own investment DNA.

The 4 Retirement Tools that I just mentioned could save your retirement even if you are 40, 50, or even 60.  I have been in the mind of retirees for more than 20 years and have learned from some of their mistakes. So please subscribe with notifications on my YouTube Channel, My Retirement Hacks, for more tips and retirement tools.

Conclusion

You’ve worked your whole life to get to this point in your life. Now, you’re finally at the age where you can enjoy your life and live it in your own way. You’ve worked hard, saved money, and are ready to enjoy the fruits of your labor. Now, it’s time to start planning for retirement. We can help you! Our retirement calculator helps you see what your retirement will look like at your current savings rate. We’ve also got a retirement planner that helps you see what your future will look like when you’re ready to retire. It’s never too early to get started on planning for what your life will look like in your golden years! We hope you found our blog useful. Please do not hesitate to contact us through our retirement chat platform if you have any questions.

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