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Old 02-26-2016, 07:20 AM
 
Location: Central Massachusetts
4,800 posts, read 4,851,516 times
Reputation: 6379

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Hi all I thought you might like to read this article I read last night. Very well written and asks good questions of you to help you think of your own situations. I can't quote the entire article but this last paragraph is good.


Quote:
In the end, there is just no substitute for a comprehensive retirement income plan. Major retirement decisions like when to retire, when to take Social Security, and how many resources will be needed to meet your income needs should not be made as a single transaction. Instead, you must consider all potential retirement income decisions as part of a coordinated plan to meet your retirement goals. While rules of thumb can be helpful to start the conversation, they should not be relied upon in your individual situation. The only way to get to a good answer for these major retirement decisions is to eschew the single transaction focus and engage in a comprehensive retirement income plan analysis

Forbes Welcome
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Old 02-26-2016, 07:30 AM
 
Location: NC Piedmont
3,911 posts, read 2,881,013 times
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Short and not pushing a particular viewpoint. I think it is a must read for anyone who thinks that there is a slam dunk answer to the questions (when to file, how much to save and when to retire). But I think most of us know there isn't.
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Old 02-26-2016, 09:10 AM
 
Location: Charleston, SC
1,362 posts, read 768,419 times
Reputation: 2428
Great article. Thanks for posting.

Here's my takeaway....

"In order to figure out how much you need for retirement, you first need to be able to visualize retirement and come up with realistic retirement expenses. Once you can estimate your expenses, you can then start figuring out how much income you need in retirement."
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Old 02-26-2016, 09:19 AM
 
4,484 posts, read 4,746,514 times
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Quote:
Originally Posted by FiveLoaves View Post
Great article. Thanks for posting.

Here's my takeaway....

"In order to figure out how much you need for retirement, you first need to be able to visualize retirement and come up with realistic retirement expenses. Once you can estimate your expenses, you can then start figuring out how much income you need in retirement."


Isn't that essentially what everyone has been saying on all the other threads regarding money amounts in retirement?? Nothing new really.
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Old 02-26-2016, 09:40 AM
 
Location: Central Massachusetts
4,800 posts, read 4,851,516 times
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Quote:
Originally Posted by brava4 View Post
Isn't that essentially what everyone has been saying on all the other threads regarding money amounts in retirement?? Nothing new really.


True but he does explain it differently and maybe that does help? Not so much for you since you already know it but......
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Old 02-26-2016, 09:46 AM
 
Location: Charleston, SC
1,362 posts, read 768,419 times
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Quote:
Originally Posted by brava4 View Post
Isn't that essentially what everyone has been saying on all the other threads regarding money amounts in retirement?? Nothing new really.
Well....no it's not what everyone has been saying. You need only look at the $2 Million Dollar Retirement thread (all 20 pages of it) to prove that.

I developed an expense budget years ago, and fine-tuned it as expenses changed. Since my last job was not a salaried position with the same income every month, I tailored my budget to meet my expenses. And it worked for me.
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Old 02-26-2016, 09:48 AM
 
Location: Idaho
1,455 posts, read 1,156,701 times
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Quote:
Originally Posted by brava4 View Post
Isn't that essentially what everyone has been saying on all the other threads regarding money amounts in retirement?? Nothing new really.
I agree that there is nothing new in the article. However, I think it is good to see these common sense financial principles to be reiterated especially by financial advisers instead of some one-size-fit-all arbitrary rules like 80% replacement income, $1M retirement saving, delaying SS collection until 70 etc.
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Old 02-26-2016, 10:01 AM
 
6,283 posts, read 4,740,348 times
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I did not learn anything from this article except that this financial advisor claims that potential retirees need an advisor because the issues are complex. Not really. No advisor can tell you how much you need to spend or how you should live your life in retirement. Each individual or couple needs to estimate how much they need in retirement. They also need to balance this with the stress and lost time in continuing to work. Often cutting back expenses are a better alternative to continuing to work and save. Estimating income based on savings is also not that difficult. Anyone who wants to do a precise job needs to be able to predict rates of investment return and rates of inflation for decades into the future. No FA that I know can do that.
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Old 02-26-2016, 10:44 AM
 
30,129 posts, read 47,361,961 times
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People need to be flexible both in expectations and in assessment of how to meet expectations

No plan is likely to fit a lifetime extending 25-30+ yrs of retirement w/o some adjustment
Some people want exact sureity and that is likely to be impossible
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Old 02-26-2016, 11:21 AM
eok
 
6,684 posts, read 3,173,524 times
Reputation: 8464
To most people retirement means taking a long vacation before you die. That's a morbid viewpoint. To me it means having plenty of time for creative hobbies. Each of my hobbies has the potential to become a future business, from which I might get rich.

If you have my viewpoint, you might or might not ever get rich, but you will be happier just from working towards that goal, at your own pace, with no boss to harass you. You can write books, do art, invent stuff, write computer programs, make websites, and/or almost anything that lets you be creative and work towards the goal of making something that might turn out to be big enough to make you rich and/or famous.

And it makes it easier to figure how much money you need. You need enough to not be harassed while you work towards your goals. To not be harassed by bill collectors, repairs you can't afford, medical care that leaves you bankrupt, etc. Having enough money to avoid harassment should be your goal for retirement finances.
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