101 Beyond Your Wedding Day Podcast-Retirement

by mike on December 4, 2012

101 Beyond Your Wedding Day Podcast-Retirement

Click Play Below

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

In this episode of the Beyond Your Wedding Day Podcast, we discuss the Total Money Makeover by Dave Ramsey.  We take a look at Chapter 9: “Maximize Retirement Investing: Be Financially Healthy For Life.”

2 Ways to contact us and get your question answered on the show: www.mikeyoungcoach.com/feedback

Call us at: 847-780-6632

*Meg wrote in about her debt free story! You can read all about it here!

*Retirement should not be just about getting to the end of a career you hate and quitting

-if that is the case, then you should develop a game plan to change careers

-some scary stats:

*56% of Americans do not consistently prepare for retirement age by investing

*40% of those making less than $35,000 per year say that the best way for them to have $500,000 at retirement is to win the Lotto

*80% of Americans believe their standard of living will go up at retirement

*97% of 65-year olds cannot write a check for $600

*Baby step #4 is to invest 15 percent of your income in retirement

-15 percent is a good rule of thumb

-you don’t want to do much more because you need money for your kid’s college and to pay off the mortgage

-you don’t want to do much less because you have to have  a good enough nest egg for retirement

-Invest 15% of your gross income, don’t factor company matches in (that’s just gravy!)

-Also, don’t factor in Social Security benefits in your calculations, I certainly don’t plan on it being there!

*Mutual funds are the way to go!

-Growth stock mutual funds are great LONG TERM investments

-I have some that have averaged over 13 percent in their lifetime including this economic downturn!

-Find investments that have a long track record of doing well, don’t pay attention to what they did over the last year or even 3 years

-Spread them out over 4 types: Growth and Income (Large Cap), Growth (Mid Cap), International (Foreign), and Aggressive Growth (Small Cap)

-Always start where you get a match (usually a 401k)

-Then go to a ROTH IRA

-After the match and you max your ROTH, if you still have more to reach your 15%, put it back in your 401k

*There is an ideal nest egg to have, but you have to start where you are at

*Obviously, the younger you start investing the better.

*Your goal is to have a nest egg large enough to live off of 8% per year and let it grow 4% to keep up with inflation so you get a cost of living raise every year

-For example, if you think you can live with dignity on $40,000 per year, then you will need a nest egg of $500,000.

-This is not a get rich quick scheme, the tortoise beats the hare

Would you like to work with Mandy and Mike one on one?  Check out the Beyond Your Wedding Day Marriage Prep Course.

Right-Click Here to Download the Show

Leave a review in itunes

Previous post:

Next post: