Can You Retire On 1 Million Dollars?

One million dollars used to be the gold standard when it came to figuring out how much money you would need to never have to work the rest of your life.   Now, we all know if you really put your mind to it that you could probably retire on a million dollars, but the real question is whether or not you could maintain the standard of living you have been accustomed to off of your current income.  With our society having become more of an outsourced society than a do it yourself society, here’s why 1 million dollars isn’t what it used to be. The Slient Killer – Inflation may be the number one item underestimated when it comes to overall retirement planning. Inflation is on the rise, and if it rears its ugly head at the 4% level you better seek shelter to figure out how to make your money last.  At a 4% inflation level, 1 million dollars ...

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Who Will Take Care Of Your Aging Parents?

Generation X will have its first official fifty year old group next year.  It’s hard to imagine for a  Gen Xer because we are still convinced that bands like Huey Lewis and The News and Foreigner are kind of cool when officially on the music circuit they are considered ‘oldies’ already.    Most of our parents are hitting that late 60’s to mid 70’s range and now we are wondering who is going to take care of Mom and Dad.   You may have even joked last Thanksgiving by putting your finger on your nose and declaring NOT IT when asked this very question by your sister or brother.    Here are four important ideas to be thinking about when it comes to who will take care of your aging parents. Who Is Playing Quarterback? The bigger your family, the more of a likelihood that someone has become the favorite son and there is a black sheep lurking in the family as well.  ...

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I Need A Pension Plan

We know that for years that planning for retirement was a three legged stool.   Pension plans, social security, and then whatever personal savings and investment plans you could muster up over the course of your lifetime.   With a great deal of uncertainty looming over social security and pension plans dwindling away from large corporations, I continue to stress to people that retirement planning feels more like a pogo stick than it does a stool. Product companies understand that the greatest way to attract customer is figure out how to fill a void in the marketplace.   As investors struggle to figure out the best way to plan for retirement, a fairly new type of fixed product has been gaining traction called a Deferred Income Annuity (DIA).   A deferred income annuity is a newer type of annuity that is essentially a mixture of a single premium immediate annuity and a single premium deferred annuity. With a DIA, the idea behind the vehicle ...

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Join Me on the Journal Report Spreecast: Retirement Planning for Millennials

Co-CEO and Founder of oXYGen Financial, Ted Jenkin, has been asked to be on select panel for the Wall Street Journal’s Retirement Planning live video interview. Please join us and show your support! You can RSVP for the live spreecast by clicking the link below. http://www.spreecast.com/events/retirement-planning-for-millennials. Thank you for your continued support! ...

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Is Your Retirement Plan Full Of Swiss Cheese

Last year, I did a piece on retirement planning assumptions.    As I continue to see more and more plans done by other financial advisory firms, I become more concerned about consumers.    Most projections that are done in business or in your personal household need to carry assumptions.   These are the variables in the equation that allow to make a reasonable assessment about what needs to be done when you are trying to achieve your goals.  When you last did your projections for retirement through the tools offered from your 401(k) plan or the nifty 35 page book your financial advisor put together, are you sure the assumptions that were made were explained to you clearly?  You may have left feeling great about yourself only to realize now that your plan is full of gigantic Swiss cheese like holes.   Here are ten assumptions you need to consider within your plan.  I highly recommend as a smart money move you use conservative ...

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Three Mistakes With Retirement Planning Assumptions

When you last did your projections for retirement through the tools offered from your 401(k) plan or the book your financial advisor put together, are you sure the assumptions that were made were explained to you clearly?    Or, did you challenge each assumption made within the financial plan to be certain that the assumptions matched your level of risk tolerance.   The assumptions made within your financial plan can be very conservative or very aggressive depending on your viewpoint about planning for your retirement.   Making assumptions is something we do every day in our lives.   Essentially, as assumption is nothing more than something taken for granted or accepted as true without proof.  In other words, it is belief without proof.   When it comes to your retirement, you need to ask about these three assumptions or your retirement plan may really be nothing more than a pipe dream. 1.) Inflation Assumption – Most financial plans give you or a financial advisor a ...

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The Words We Don’t Want To Hear: “You May Need To Save More”

I really think over the next five years the whole notion of retirement planning is going to change.   The X and Y generation don’t think about retirement the way their parents or grandparents did.   Since so many more people are staying active during their golden years, the next couple of generations will be thinking more about making work option than pulling themselves over to the retirement shelf.    What still holds true for most us is that since companies don’t really often pensions anymore, it’s up to you to figure out how you can save enough money to do what you want when you want irrespective of cost.    No matter what you calculate your ‘work’ optional number to be you should remember that you only have four options should you start falling short of hitting those numbers.  Here are your four choices: Extend your time frame  – If you planned for your ‘retirement’ goal to be at the age of 60, ...

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Personal Finance 101 – Retirement Planning – Getting Income From The Water Faucet

Last week in Retirement Planning 101, I discussed the different types of investments used in retirement plans. If you do a good job saving during your working career, the most difficult phase of retirement planning in my opinion is the distribution phase. Since most people who think they are ready to financially retire worry about running out of money, figuring out the right way to take income from your investments is crucial during retirement.  I think about retirement asset distribution much like the water faucet you have at home. You need to know which spicket to turn on in order to minimize taxation while you take home the most net income possible. Remember that the first couple of years of retirement will generally result in a slightly larger amount of income needed before you settle into your regular expense mode for retirement income.  We have found over the years that clients will spend more in the beginning of retirement filling ...

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