On the Money with Secure Money: Episode 47
What they’ve come to find out is that that strategy, the 4% rule, actually has a high percentage of failure. Matter of fact, it’s a 56% failure rate. So, think about this. The Wall Street Journal, the Harvard Business School of harvest, Harvard School of Business has come out and they said, Look, if you follow this 4% rule, there’s up to a 56% chance that you’re planning to fail.
On the Money with Secure Money: Episode 46
People are investing for growth; people are investing to accumulate dollars. They’re not making the transition to an income strategy, which is completely different than accumulating your dollars and growing your money. And so, it’s one of the most overlooked areas. And I think it’s because for the longest time, my industry has taught people that if you have an investment portfolio, a diversified investment portfolio of stocks and bonds, that you could keep that money invested.
On the Money with Secure Money: Episode 45
In the Roth portion, the 401k. If I want to pull all $100,000 out, I can do that tax free, if that were to go in the traditional portion, right, if that were to go into the traditional 401k portion, that $15,000 grows to $100,000, I pulled out all of that $100,000 counts as the income tax.
On the Money with Secure Money: Episode 44
And once people understand the areas that they need to focus on, and they understand the best practices that they need to make sure that their portfolio is having, they get a sense of peace, right? There’s a peace of mind that comes with having a thorough plan. And that’s the whole goal. You know, I jokingly say to, you know, my team at secure money advisors, I said we provide sleep insurance.
On the Money with Secure Money: Episode 43
I mean, you know, typically the people that are coming into our office are wanting to make sure, you know, as they get closer and closer to that retirement date, that they’re invested properly, right. So, they want to continue to make adjustments to make sure if we saw that 2008 scenario, they don’t significantly take three steps back.
Retirement You TV: Episode 42
And it’s something that we adhere to pretty much on point that secure money advisors, basically what it means is you take your age, so if you’re 60 years old, 60% of your money should be safer, more conservative 40%, you want for more aggressive, more risk for long-term growth.
Retirement You TV: Episode 41
But a lot of people that I’m dealing with are saying I’d rather deal with the known tax rate right now than what the future holds and the potential increase in taxes. So, getting money to a Roth and allowing it time to accumulate, I think can always be a good decision. Now, whether or not it’s the best decision for you, we’d have to know a little bit more details.
Retirement You TV: Episode 40
And inheriting money can be a big taxable event, if not managed correctly. So, it’s important that you really understand the tax implications of where to transfer that money to, to maximize your situation. That’s the first step. Taxation is always the first step, deploying it, whether it be investments or real estate, or wherever it might be, that’s secondary, right, but you know, at the end of the day, you know, a good plan will help you decide where to put that.
Retirement You TV: Episode 39
And this is where things like the rule of 100 come into play. So, this is where we take 100 minus your age. So, if you’re 60 years old, we take 100 minus 60, which equals 40, 60% of your money should be protected, right, we don’t want a lot of risk with that money and 40% of your money can be in a high risk, growth-oriented investment.
Retirement You TV: Episode 38
Okay, well, just taking money out is not a plan, we have a withdrawal rate, is there a certain rate of return we’re trying to achieve? How much income are we going to need? What are we going to pay in taxes? Do you have Roth IRA money, traditional IRA money, there’s a lot that goes into figuring out proper distribution, and to properly do it in a way that you mitigate risk so that you don’t run out of money while you’re still alive.