The realities of retirement planning are different than they were even a decade ago. Let’s talk about some of the realities that affect how you need to plan…
Click the timestamps below to jump ahead in the episode…
Other Retirement Facts:
2:47 People are living longer.
- Back in the ‘30s, the average life expectancy was 60 for a man and 64 for a woman. Today, if you live to 65, you can expect to live another 20 years. 25% of us will live to 90.
- And because people are living longer, they’re also working longer than they used to. So, don’t feel like you have to retire at a certain age just because your parents did.
5:38 Retirement is an active stage of life.
- Phil shares a story about some clients who travel in retirement to follow their favorite baseball teams.
- Playing shuffleboard or sitting on the front porch in a rocking chair is no longer the dream retirement for most people. Instead, retirement today usually involves things like volunteering for a favorite cause, traveling, developing a new skill, or helping raise grandchildren.
- And while being active is more fun, it can also be more expensive, so it’s important to have a realistic income plan for retirement.
- Whatever your passion or vision is, make sure you’ve got a plan to accomplish that as you get into retirement. An active retirement may cost more money than a passive one.
8:55 The current investing environment is more challenging than it used to be.
- Phil explains why you have to be careful in how you withdraw money due to something called sequence-of-returns.
- The stock market is more volatile than it’s ever been. Interest rates are as low as they’ve ever been. If you’re retired or close to retirement, this isn’t the best time in history to be investing without a plan or without a good advisor.
In The News:
11:47 Tax Change Update
- First year of the inaugural tax change had mixed reviews.
- Overall taxes have been lowered.
11:47 Lou’s assumption
“I’ve always assumed that I’ll be in a lower tax bracket in retirement, but now I’m questioning whether or not that’s true. What do you normally see?
- A lot of clients think this way, which is why an IRA or 401(k) is a common vehicle to save for retirement.
- That assumption is often false because people like to continue their same level of lifestyle and will need similar income to support it.
Getting To Know Phil:
14:53 The most beautiful view
- We ask Phil what’s the most beautiful view he’s ever seen?
- Hint: He’s looking at a photo of it right now!
A Quotable Moment:
Whatever your passion or vision is, make sure you’ve got a plan to accomplish that as you get into retirement. - Phil's Tax Hacks PodcastTweet This
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