I’m talking about penny pinching in retirement because (as you said and I agree with) lifestyles between working and retirement don’t change much. Going from an annual salary to a fraction of it often causes people to be scared of spending and only withdraw a small amount of their wealth. If you use, say, a variable annuity, you can withdraw your retirement funds at a higher rate (~6%) and when your money depletes from the IRA, an annuity kicks in and continues to pay you for life. Being a planner is about reducing the uncertainty our clients have in retirement so they can worry about other things. Sure, the 4% rule can work, but why use that when there are significantly better options out there? Also, with these variable annuity contracts you can keep yourself allocated aggressively (even up to 80/20) because the contract allows you to capture all the upside while having an annuity option that doesn’t drop in value.
I’m aware of what the 4% rule is, I work as a Financial Planner. Only withdrawing 4% a year at retirement will make you penny pinch and worry about running out of money before you die.
It’s all about diversifying your income during retirement so it’s not all in one pot (401(k)). You should definitely be contributing to your 401(k) (at least up to your match) but it shouldn’t be your only bucket. You also want to create a steady income stream (Annuity) and contribute to a tax-free bucket (Roth IRA or Life Insurance). The average American has no idea of how to properly save for retirement because only contributing to your 401(k) will leave you penny pinching in your later days, especially taking inflation into consideration. JayTas– If you want some proper planning in NYC I’ll help ya out.
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This is phenomenal. Tip of the hat for #23, #24 is subjective, and 100% #25.
Wait, this is amazing. I can’t believe I’ve never heard of this.
Pretty damn accurate. My company luckily expenses all my food when I’m travelling so I get to eat well and save bank at the same time.
Anybody that works in consulting does something like this. Fly/train out on Monday, go home Thursday.
I think the episode that officially got me hooked was episode 4. Give it a chance to let it into you heart.
Same. No regrets.
this gave me a mind boner. well put sir.
Sprickets. The demon-spawn crossbreed of a spider and cricket. They’re terrifying.
The Friday’s in NYC aren’t taking part in the promotion. Complete blasphemy.
I would purposely not tip if I could somehow make that^ situation not happen. Does that make me a bad person?
They’re unfortunately not branching out to new cities anytime soon. I think it may take years to get it here in New York.
FiOS or die.
Bitches love baby teacup piglets.
“Douchebag” has another meaning that isn’t negative? Please share.
Just be aware that Budweiser is owned by a Belgian parent company so you’re supporting the other team by drinking it today.
I’m talking about penny pinching in retirement because (as you said and I agree with) lifestyles between working and retirement don’t change much. Going from an annual salary to a fraction of it often causes people to be scared of spending and only withdraw a small amount of their wealth. If you use, say, a variable annuity, you can withdraw your retirement funds at a higher rate (~6%) and when your money depletes from the IRA, an annuity kicks in and continues to pay you for life. Being a planner is about reducing the uncertainty our clients have in retirement so they can worry about other things. Sure, the 4% rule can work, but why use that when there are significantly better options out there? Also, with these variable annuity contracts you can keep yourself allocated aggressively (even up to 80/20) because the contract allows you to capture all the upside while having an annuity option that doesn’t drop in value.
I’m aware of what the 4% rule is, I work as a Financial Planner. Only withdrawing 4% a year at retirement will make you penny pinch and worry about running out of money before you die.
It’s all about diversifying your income during retirement so it’s not all in one pot (401(k)). You should definitely be contributing to your 401(k) (at least up to your match) but it shouldn’t be your only bucket. You also want to create a steady income stream (Annuity) and contribute to a tax-free bucket (Roth IRA or Life Insurance). The average American has no idea of how to properly save for retirement because only contributing to your 401(k) will leave you penny pinching in your later days, especially taking inflation into consideration. JayTas– If you want some proper planning in NYC I’ll help ya out.
VUL Policy. Same tax deferral as a Roth with no annual contribution limit or income limit.
Your comment shows that you have no idea what you’re talking about.