Skip to main content

Creating a Retirement Plan for Debra. What happened on Day Two

Comments

Popular posts from this blog

What To Do with Your Retirement In A Market Correction

I have been getting a lot of requests to put up a blog post to prepare everyday retirees for an upcoming market correction.  First of all let’s describe or identify a market correction.  A market correction is essentially an overall market drop of about 10%.  A market correction is not to be confused with a bear market, which is about a 20% drop in the markets.  First, let’s discuss when the last official market correction was on the books.  The last correction was the summer of 2015, and it started with China’s market in June.  China had a stock market crash that continued into July and August, then around the middle or August the Dow Jones Index (a collection of key stocks that measure the market as a whole)  The Dow Jones Stock Index basically measure the pillars or historical fortune 500 giants of the United States fell about 10%.  The Dow Jones fell 588 points during a two-day period, 1,300 points from August 18–21. Then on Monday, August 24, the world stock markets were down sub…

The Number 1 Reason Why I Hate Your 401k Part II

The Number 1 Reason Why I Hate Your 401K Part II

I remember sitting in a classroom about 17 years ago, and the instructor passed around a magazine for us to look at.  On the cover was a person by the name of Ted Benna, and if you research or look him up you will see that he is called “The God Father of the 401k” or something of that nature.  I wanted to add some context to the readers who are yet to listen to Part I of the Reason Why I Hate Your 401K, which is available as a podcast here, and I recommend as an introduction to this Part II blog.  In celebration of our 10th podcast for “The Retirement Exit”, I decided that this subject was too complex to share on my podcast so this blog is Part II.  Part I (podcast) will share two other important reasons, but Part II (blog) is the biggest reason why I hate your 401k.

I share in that podcast why I hate your 401k, and why I no longer hate my retirement plan.  This blog will take into account that my listeners have heard the podcast and pull…

Why Taking Social Security Early Could Cost You More than a few bucks

Some people say that one of the biggest decisions a retiree can make is deciding on when is the right time to draw social security.  In my opinion, this is in fact, the most important decision you would make going into retirement.  In my podcast entitled “The Shift” from Accumulation to Distribution, I mentioned that the decision should be planned out well in advance because the stakes are higher once you go into the distribution phase. I want to give you a few reasons why getting it wrong could cost you more than you think.  One reason why you need to absolutely get it right is because if you take it to early, then you miss out on one important benefit, Medicare as it is not available until age 65. So if you retire at age 61, where will your medical insurance come from?  Trying go it alone with private insurance for 4 years can get quite expensive.  Another reason you might not want to take social security to early is that you can leave a lot of money on the table.  
Take the graph be…