A number of friends and family have had questions relating to Retirement Planning, Investing and other financial oriented questions. Here I supply some information related to various topics associated with financing.
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Where: Zoom Meeting
Meeting ID: 823 953 2181
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Meeting ID: 823 953 2181
Find your local number: https://zoom.us/u/adZRrHAWOB
Most data presented here is dated. Tax laws, stock quotes and the general economy changes on a regular basis (yearly, weekly, daily). Information provided here is just the starting point. It is up to you to ensure you have the latest information.
Guidance and advice provided here is just my opinion. Guidance and information is just from what I have learned through the years. I have no degree associated with money, and have no certifications associated with finance. Take all information provided here with a grain of salt and verify with other resources before making a decision.
Your situation is unique - Advice or recommendations provided here may NOT be appropriate for your situation. Financial moves and investments that a person in their early 20's may be completely in appropriate for someone who is retired. Also investment considerations and moves are dependent upon what your total financial resources are. Consider if the advice given is appropriate for your situation.
Your Winning Retirement Plan webpage - This page contains resources that can be downloaded including the review of the book used for the meeting agendas, meeting recordings and spreadsheets corresponding to worksheets in the book.
Kiplinger's Personal Finance - Good basic finance magazine.
Kiplinger's Retirement Report - Great resource for people preparing for retirement (5-10yrs) and those retired.
Kiplinger's Investment for Income - Exactly what the title indicates. If you are looking for investments to generate income this is great.
Planet Money - Anything having to do with the economy. Always interesting.
Kiplinger - Great overall trusted resource
Investopedia - Good source of information
Internal Revenue Service (IRS)
Roth VS Traditional IRA Calculator
Roth IRA Conversion Calculator
Frontline: The Retirement Gamble (Video, 52minutes) - This will open your eyes to financial institutions and hopefully motivate you to take control of your financial future, because no one else will. YouTube Link
Planet Money: Money Episode 688 Brilliant Vs Boring - Warren Buffet, one of the world’s richest persons, and perhaps the best investor made a bet with a group of hedge fund managers that a basic index fund could perform better than any investments they selected over a 10 year period.
H & R Block Tax Preparers Class - One of the best investments I have ever made. This helps you to understand the rules of the game and will enable you to do your own taxes. Course cost about $150, total class time is 73 hours.
Investopedia Academy: Investing for Beginners - Completely online this course is a series of short videos covering most topics a beginner needs to know. I would think of this as a one day seminar on basics of investing. Cost is listed as $199 but you may be able to get a discount (Try BX2020 it might get you 15% off). they state you will have access to the material for your lifetime. A good investment if you are serious about understanding the fundamentals of investing.
Your Winning Retirement Plan (J.K.Lasser) - Best retirement planning book that I have ever read. Sadly out of print, but you can still get a good used book on Amazon for less than $10.
2022-03-13 Your Winning Retirement Plan Book Review: Chapter-6 Spending in Retirement (pages 197 - 241)
2022-03-06 Your Winning Retirement Plan Book Review: Chapter-5 Gates 3,4 & 5 (pages 160 - 196)
2022-02-27 Your Winning Retirement Plan Book Review: Index Fund Investments, Chapter-5 Gates 1 & 2 (pages 139 - 154)
2022-02-20 Your Winning Retirement Plan Book Review: Chapter-4, Return on Investment (Pages 11-138)
2022-01-30 Your Winning Retirement Plan Book Review: Chapter 3, Part 1, Investments (Pages 61-84)
2022-01-23 Your Winning Retirement Plan Book Review: Chapter 2, Part 2, Chapter 3, - Investments (Pages 44 - 109)
2022-01-16 Your Winning Retirement Plan Book Review: Chapter 1, Part 2, Chapter 2, - Some Fundamental Planning Facts (Pages 12 - 44)
2022-01-09 Your Winning Retirement Plan Book Review: Chapter 1, Part 1 - The Realities of Financial Planning (Pages 1 - 12)
2021-09-19 What you should know about Social Security - Review of factors to consider when determining what age to start claiming benefits.
2021-04-25 Annuities - Review if different types of annuities, and how they may be used in your retirement planning.
2021-02-21 Investing and Taxes - Discussion on how tax laws impact investment decisions.
2021-02-07 Asset Allocation - Part 2 - Deep dive into the Asset Allocation Example spreadsheets.
2021-01-31 Asset Allocation - Part 1 - Discussion on factors to consider for Asset Allocation.
2021-01-17 Investing 101 - Discussion on investment options including Stock, Bonds Mutual Funds Et al.
2020-12-20 Review of Vehicles for Retirement - Discussion on various options for saving for retirement.
2020-12-13 Using the Investment Spreadsheet - Review the spreadsheet created for comparing stocks and funds.
This meeting is a open conversation on a number of items including:
Update on current investment approach and models I use
Dividend producing investments
Investment options where principal is not at risk
Model Portfolio discussion
2022-03-13 Chapter-6 Spending in Retirement (pages 197 - 241)
This chapter details the process of planning, executing and maintaining a budget in retirement. It shows how using the Autopilot method can be used to ensure you have adequate funds to keep the same lifestyle that you have projected in your pre-retirement planning. It also helps identify the order you should tap accounts in the spend-down phase of your retirement.
2022-03-06 Chapter-5 Gates 3,4 & 5 (pages 160 - 196)
We continue our pre-retirement calculations completing the following gates:
2022-02-27 Index Fund Investments, Chapter-5 Gates 1 & 2 (pages 139 - 154)
Before diving into chapter 5 we will briefly review a couple of papers originating from the American Association of Individual Investors that address Asset allocation and diversification, identifying a number of approaches and index funds that can be utilized to build your portfolio.
Diving into chapter 5 is where the rubber hits the road. We are introduced to a number of worksheets used to determine your current retirement situation, how to determine your future needs, and finally how to determine the type of lifestyle to expect in retirement. We also discuss how to evaluate an early retirement offer if your company offers you one. Finally, this chapter discusses options on what you might consider to meet the lifestyle you want in retirement if your current situation doesn't appear to support the lifestyle in retirement you would like.
2022-02-20 Chapter-4 (pages 111 - 138)
This chapter is focused on the concept of Return on Investment (ROI) aka Returns. This may be the single most important input in your retirement planning and execution, so it is vital you understand how it works and how important it is to try to get as accurate measure and estimate of this value to be used in your calculations. This chapter also covers how to measure performance of your investments to determine if a new strategy is in order.
Chapter 3 is focused on Investments and identifies the various types of investments (ie stocks, bonds, etc) the various types of accounts (ie vehicles) created for holding these investments ad finally introduces the concept of Asset Allocation, a process of distributing your investments across various risk level investments to minimalize risk and maximize gains. The importance of placing investments in the appropriate vehicles to minimize tax implications is also discussed. Finally some thoughts on the appropriate approach to creating a plan and implementing it based on the level of involvement you desire are discussed..
Chapter 2 Part-2, Chapter 3: Investments (Pages 44 - 59)
We Continue Chapter 2 with more definitions then discuss unplanned expenses. Finally we introduce taxes and how to determine what you Net Tax Rate is.
Chapter 3 is focused on Investments and identifies the various types of investments (ie stocks, bonds, etc) the various types of accounts (ie vehicles) created for holding these investments ad finally introduces the concept of Asset Allocation, a process of distributing your investments across various risk level investments to minimize risk and maximize gains. The importance of placing investments in the appropriate vehicles to minimize tax implications is also discussed. Finally some thoughts on the appropriate approach to creating a plan and implementing it based on the level of involvement you desire are discussed.
Chapter 1, Part-2, Chapter 2: Some Fundamental Planning Facts (Pages 12 - 44)
We wrap up chapter 1 with a discussion on hazards of post and pre retirement projections. Continuing onto Chapter two where we discuss Opportunity Cost associated with spending money on unnecessary items. The concept of life expectancy and how these tables are used by the IRS is explained along with how the expected life expectancy in these tables change as you age is explained. The dynamically changes estimate of life expectancy is used to help insure you never outlive your retirement funds. The concept of compounding is introduced here and how this can work to your benefit when applied to investments but work against you when applied to inflation. The concept of Today’s Dollars is introduced and explained why this is used with the Autopilot method. Basic financial terms are introduced. Recognizing that unplanned events and what some of these may be is discussed. It is pointed out that Taxes should play a role in financial decisions and retirement planning. Finally it is pointed out that there are many uncertain factors that may impact your retirement planning. It is also pointed out that Autopilot method introduces mechanisms for dealing with these uncertainties.
Chapter-1, Part-1: The Realities of Financial Planning (Pages 1 - 12)
This chapter points out the importance of having pre and post retirement plans on how to save and spend-down your nest egg. It identifies risk of out-living your savings and provides real-world scenarios on how some of the various approaches would have faired in different historic market conditions. Common mistakes and incorrect assumptions that many plans make are identified. A side-by-side comparison on how theses methods would have performed in comparison with the Autopilot method is provided.
Things to consider and when determining what is the best age to start claiming Social Security Benefits (ie Breakeven calculations), we also discuss how benefits are taxed. We run through a few scenarios on when to claim benefits and tax calculations in relation to Social Security
We take a high level view of the different type of Annuities and options (riders).
We take a more direct look at how tax considerations should help guide you in decisions on what investments should be placed in what accounts, and how taxes should be taken into consideration when withdrawing from these accounts.
Before our discussion on taxes we will have a brief discussion on possible investment opportunities due to COVID-19. These are considered Tactical Investments. We will also briefly discuss recent Bitcoin developments.
We continue our discussion on Asset Allocation In this conversation we do a deep dive into the Asset Allocation Example spreadsheets. We review the details of the three sample portfolios (Conservative, Moderate, Aggressive) portfolios and detail how they were created, examine how they would have performed thought the housing market crash and the recent COVID-19 pandemic correction. We then move on to show how you can use these spreadsheets to review and adjust your portfolio and get an idea on how it would have performed during these two corrections.
It is highly recommended that you view Part 1 of this discussion before viewing Part 2. We will be referencing the same spreadsheets that were introduced in Part 1
Webex Recording (1:08) (MP4 Format).
One of the keys to successful investing and retirement planing is having the appropriate Asset Allocation. In this meeting we will discuss what Asset Allocation is and some of the factors that need to be considered when determining what allocation is appropriate for you.
Webex Recording (1:06) (MP4 Format).
There are a myriad of options when investing your money, here we have a brief overview of CD's, Stocks, Bonds, ETFs, Index Funds, Mutual Funds.
Webex Recording (1:13) (MP4 Format).
Different Asset Classes Examples
This is a very brief rundown of some of the various investment vehicles one should consider for securing ones retirement. Various vehicles including 401k's, 357's, IRA's Roth IRA's, Health Savings Accounts (HSA) and regular investment accounts are discussed.
In this WebEx we review the spreadsheet I have developed for evaluating Stocks, ETFs, bond Funds and other investments that can be purchased through a brokerage account or other investment account.
NOTE: Updated spreadsheet with updated macros
[Control][Shift]Q – Will rename cells for the newly defined investment.
[Control][Shift]W – Will insert investment data defined for new investment.
[Control] means to hold down the Control key
[Shift] means hold down the Shift key