Other Retirement Facts:
You know what happens when you assume, right? We all make assumptions from time to time as humans, but what assumptions are you making from a retirement standpoint that you really shouldn’t? On today’s episode, Phil talks through the assumptions you might be making and how to adjust your thinking.
Do you think you’ll spend less in retirement? That’s not always the case. We all underestimate what we spend, even before retirement. Do you know your budget? Without knowing what you actually spend, you may be in trouble when it comes to retirement. Right before you retire, you might be making the most money you’ve ever made and spend more than you used to.
Are you banking on taxes being lower in retirement? What happens when taxes go up? Even before the stimulus packages was factored in, taxes were bound to rise over time. Your brackets might change but you might still be paying more in taxes than you expected.
As you save for retirement now are you also planning to pay for your kids’ college? Make sure your retirement isn’t sacrificed for the sake of college for your children. You can get loans for college, but your retirement needs must come first. What happens if your kid doesn’t get the degree or the job to pay off the loans later on? It’s important to have these discussions with your kids and your financial advisor.
Worried you can’t ever retire? Have you actually run the numbers yet? Don’t assume you’ll never be able to reach certain goals. Running the numbers alongside an advisor might give you the plan and the confidence you need. Where do you actually stand? Believe it or not, the financial planning process may not be as painful as you think it will be.
1:11 – Do you assume you’ll spend less money in retirement?
4:38 – Think taxes will be lower in retirement?
8:33 – Expecting to pay for your kids’ college?
12:30 – “I’ll never be able to…”
Thanks for listening! We’ll be back with another episode next week.
A Quotable Moment:
“The quicker you start to analyze and understand and put that timeline together, you have time to make some changes.”