4 Your Money: Mike Giordano talks retirement

4 Your Money: Mike Giordano talks retirement

Ready for retirement?

SO CNBC REPORTS THAT THE AVERAGE AGE WHEN AMERICANS HOPE TO STOP WORKING IS 62 YEARS OLD. BUT ARE THEY FINANCIALLY READY TO RETIRE THEN? WE’RE ALL HERE TO HELP. IS OUR FRIEND MIKE TODAY NO FINANCIAL ADVISER WITH WILLIAMS WEALTH MANAGEMENT. THANK YOU FOR BEING HERE. SO WE KNOW SLUMPING MARKETS, OF COURSE, ARE TOUGH FOR ALL OF THE INVESTORS. BUT YOU SAY YOU’RE REALLY HAVING LOTS OF CONVERSATIONS WITH PEOPLE WHO ARE EYEING RETIREMENT. WHAT ARE THEY TELLING YOU? WELL, WHAT’S INTERESTING, GABBY, IS THAT 62 NUMBER I SEE A LOT OF THEM THAT WANT TO START THINKING ABOUT RETIREMENT AT 52. SO THERE’S A LOT OF PEOPLE THERE AT 54, 55, 57. AND EVEN BEFORE COVID, I MEAN, COVID HAS CHANGED A LITTLE BIT, BUT THERE WERE A LOT OF PEOPLE THAT WANT TO I EARLY RETIREMENT FOR A WHOLE HANDFUL OF REASONS. THE FIRST THING I TRIED TELLING THEM IS THAT YES I KNOW THE MARKETS ARE DOWN A LITTLE BIT. YOU’RE FREAKING OUT. YOU’RE FEARFUL THAT YOU CAN’T RETIRE IN TWO YEARS, BUT, YOU KNOW, LET’S TAKE A LOOK AT THE GAME PLAN. OKAY. SO YOU SAID FREAKING OUT. SO. SO YOU SAY TO PEOPLE BEFORE YOU FREAK OUT TOO MUCH, YOU NEED TO GET A LOOK AT THE AN ACCURATE PICTURE OF YOUR PRESENT POSITION. HOW DO YOU DO THAT? FREAKING OUT DOESN’T WITH SOMETHING. YOU HAVE TWO DAUGHTERS, YOU KNOW THAT, RIGHT? FREAKING OUT DOES NOT GET TO EXACTLY WHAT YOU WANT. YEAH. YOU REALLY HAVE TO STAY CALM BECAUSE, YOU KNOW, IF YOU HAVE A NORMAL 30 YEAR RETIREMENT, YOU’RE GOING TO HAVE A LOT OF DOWNTURNS IN THE MARKET OVER THAT TIME. SO THIS IS ALL PART OF OF INVESTMENT PLANNING. YOUR PLAN SHOULD HAVE ENOUGH BALANCE TAKING OVERCOME THIS. SO, YOU KNOW, A PLAN ISN’T TO HAVE THAT LAST PENNY ON YOUR LAST BREATH. THE KEY IS YOU WANT TO HAVE ENOUGH OF A CUSHION INVOLVED. SO MAYBE YOUR CUSHIONS COME DOWN A LITTLE BIT. WE SHOULD STILL HAVE THAT CUSHION. YOU KNOW, IF YOU DON’T KNOW WHERE YOU’RE AT, TALK TO AN INVESTMENT PROFESSIONAL AND THEY CAN KIND OF WALK YOU THROUGH IT ALL. CAN YOU SHARE ANY RULES OF THUMB THAT PEOPLE CAN USE TO BETTER GAUGE WHETHER THEY’RE THEY’RE STILL ON TRACK FOR RETIREMENT? YEAH. EVERYBODY’S SITUATION IS DIFFERENT, BUT THERE’S A THING CALLED A 4% RULE, WHICH MEANS YOU CAN SPIN OFF ABOUT 4% OF THE OF THE ASSETS THAT YOU HAVE IN YOUR PORTFOLIO EVERY YEAR. SO IF YOU HAD A MILLION DOLLAR PORTFOLIO, IT COULD SPLIT OFF $40,000. IF YOU GOT A $500,000 PORTFOLIO, COULD SPLIT OFF $20,000. THAT’S A GOOD WAY OF GAUGING. OKAY, HOW MUCH CAN I GET OFF MY PORTFOLIO? AND THEN YOU CAN LOOK AT SOCIAL SECURITY, OBVIOUSLY GOT A NICE BUMP COMING NEXT YEAR. YOU CAN LOOK AT SOME OF YOUR OTHER BUCKETS OF MONEY IF YOU’RE LUCKY, TO HAVE A PENSION AND YOU CAN KIND OF PUT IT ALL TOGETHER AND SAY, DO I HAVE ENOUGH MONEY BETWEEN ALL OF THAT TO FUND MY GOALS? QUICK, QUICK. FOR PEOPLE WHO ARE NOT QUITE YET READY TO TO RETIRE ANY MONEY MOVES THAT THEY SHOULD BE MAKING. YEAH. I MEAN, REGARDLESS OF WHETHER YOU’RE READY TO RETIRE OR YOU HAVE A LITTLE BIT LONGER TIMEFRAME, THE FIRST THING I WANT TO MAKE SURE IS YOU GOT ENOUGH CASH. SHORT TERM INVESTMENTS, SHORT TERM BONDS, YEAR TO YEAR BONDS. THAT’S NUMBER ONE THING. NUMBER TWO THING IS, LOOK AT YOUR SPENDING. I MEAN, SOMETIMES PEOPLE THEY CREATE A GOAL AND THEN NOW THEY GO, YOU KNOW, THERE’S A LOT OF SPENDING HERE THAT I HAVE THAT I DON’T REALLY DO ANYMORE. SO IF YOU HAVE LESS SPENDING, IT REQUIRES LESS MONEY TO FUND A RETIREMENT. AND THEN YOU CAN ALSO TRY TO MAKE SURE YOU HAVE MONEY IN DIFFERENT TYPES OF ACCOUNTS. IT HELPS YOU TAKE ADVANTAGE OF OF DIFFERENT TAX RULES. IT GIVES YOU MORE FLEXIBILITY. ALL RIGHT, MIKE, THANK YOU SO MUCH FOR COMING BACK. GOOD TO SEE YOU. ALWAYS NICE TO TALK ABOUT RETIRE AT 62. I’LL BE OUT THE DOOR.

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4 Your Money: Mike Giordano talks retirement

Ready for retirement?

Financial advisor Mike Giordano with Williams Wealth Management shares advice for what to do if you’re concerned about having to delay your retirement plans given the slumping markets.

Financial advisor Mike Giordano with Williams Wealth Management shares advice for what to do if you’re concerned about having to delay your retirement plans given the slumping markets.

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