RETIREMENT can be a scary prospect, even with over $1,000,000 in the bank.
That’s why 59-year-old Jeremy recently asked financial expert James Conole for his tips on making his savings last into his 90s.
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James Conole is a certified financial planner and the founder of Root – a retirement planning tool.
In a recent YouTube video, he took the case of his client Jeremy, who was 59 and approaching retirement.
Jeremy had fears about retirement because of what he saw happen to his mom and dad.
His dad passed away at 62, never getting the chance to retire.
Meanwhile, his mother lived until 93 and struggled financially towards the end of her life.
“Keep in mind these two competing fears – living too long, and dying early,” said James.
However, Jeremy had saved well for retirement, with $1.5 million across various accounts.
He also had no wife or children to take care of.
His plan was to stop working at 70, live off $5,200 a month, and save extra incase he needed long term care.
James identified three steps to ensure Jeremy would never run out of money.
THE THREE STEPS
First, he would optimize his income sources.
Because Jeremy was not retiring until 70, that meant he would receive the maximum Social Security payment each month for as long as he lived.
He could also make calculated investments with the money in his 401k and Roth IRA to ensure these pots kept growing.
Next, Jeremy would need to adjust his lifestyle as he went.
That meant budgeting for more expensive vacations during the early years of retirement, and allocating funds for long term care if necessary during his later years.
The third step, careful planning, would ensure Jeremy met all his retirement goals and enjoyed his golden years to the max.
To “fully experience” retirement, James actually recommended Jeremy ought to stop working sooner aged 65.
That would avoid him making the same mistake as his dad and not getting to fully enjoy retirement.
“Some of this process is designed to answer the question: What’s possible? What could life look life? What am I on track for? How does this change based on different assumptions changing?”
It’s also possible to retire even earlier by live extremely frugally, like one couple did in their 30s.
But if you plan to retire on Social Security, be sure to know the answer to these 13 vital questions.
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