If You're Like Most, You Need to Think About This!

By
Real Estate Agent with Bill Cherry, Realtor 0124242
https://activerain.com/droplet/4hZw

 

So how much will you have to save each month to accumulate enough money to be able to retire financially safe, and be able to live un-financially assisted for the remainder of your life?

 

Here's what you'll need to save  each month to have about $50,000 per year to spend and with only a marginal chance of running out of money.

 

25 Years Until Retirement.................$5,000.00

30 Years Until Retirement.................$4,166.00

40 Years Until Retirement.................$3,125.00

45 Years Until Retirement.................$2,777.00

Unless you are planning on your children helping you, getting a significant inheritance, or hope to depend on government assistance, you've got to do this.


According to the results of multiple studies, a significant percentage of people in all age groups and in all financial groups, have no viable plan, while multitudes have no plan at all.

Some laugh and say, well I can't save any significant amount each month.  It's taking all we make just to pay the day to day bills.

So they virtually use that as justification for doing nothing.

Whether you can save what you will need to accumulate by the time you retire or not, saving --- however much --- will make things a lot easier on you when that time comes.

If you are one of these who's not properly preparing, let's get together and put you on the right track.  One that is from an educated prospective; one that you can depend on to be the truth.

 

William S. Cherry & No Company
Park Avenue
Wealth Coach.Com

972 677-7028

 

 

 

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Ambassador
4,381,896
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Bill- I'm sending this to my nieces.  We're already there and doing ok!

Jun 15, 2014 11:33 AM #4
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Kathy!  That's supurb.  Good for you!

Jun 15, 2014 12:51 PM #5
Rainmaker
202,942
Marcie Purcell
Better Homes and Garden Real Estate Cassidon Realty - Quakertown, PA
Realtor, Bucks & Montgomery Co PA

Bill,  It is truly scary how many people can't do this because of living paycheck to paycheck. There are always excuse on why this can't be done but some people just do not have it and very little support to try to go back to school or get better jobs. 

Jun 16, 2014 09:12 AM #6
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Marcie, it makes me crazy!  

There's a guy here in Dallas who is about 70+ years old and who has weekly seminars. He captures and encourages people through his radio program on a station that primarily focuses on seniors, to come so he can teach them how to "retire safe and happy."

He's a nice fellow.  I know and like him.  People go to him for advice, and leave having bought the investment products he recommends.  

I asked him a year or so ago how his own finances were going.  He seriously told me that his personal net worth was only about $40,000.

My point is, even some of those who claim to be "in the know" have been unable to follow their own advice.

Thanks for adding your important observations.

Jun 19, 2014 07:25 PM #7
Ambassador
4,381,896
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Jun 21, 2014 10:37 AM #8
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Thank you, Kathy!  What a nice compliment.

Jun 21, 2014 08:42 PM #9
Rainmaker
808,931
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee - 423-677-6677

Those numbers are eye opening.  People just have no idea how fast time flys.  I'm sharing with my daughter.

Jun 21, 2014 09:36 PM #10
Ambassador
3,718,141
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Bill, I know almost no real estate professionals who have seriously planned for their retirement.  So there are many really, really old people still on the streets who will help their clients shop - until they drop (the agent that is)!

Jun 22, 2014 12:35 AM #11
Rainmaker
3,514,542
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Start early and keep being consistent...it will pay off, no matter what the actual amount!

Jun 22, 2014 12:47 AM #12
Rainmaker
535,405
Gay E. Rosen
Julia B. Fee Sotheby's International Realty - Larchmont, NY
As Real as Real Estate Gets!

Hi Bill -  sometimes life gets in the way for some and they are not able to put money aside..   but your words and advice are sound and good!

Jun 22, 2014 01:48 AM #13
Rainmaker
1,602,855
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

William, all good information here. I am surprised by the  number of my fellow agents that are not attending to this activity. Social security will never be enough to survive, efven if you retire today.

Jun 22, 2014 02:21 AM #14
Rainmaker
2,191,699
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Where do these numbers originate, William? Because most people with 25 years to retirement or even 10 years are not saving $50,000 to $60,000 a year. Plus the only way to defer taxes on that amount of money is to set up an SEP, which maxes out at $51 or 52K, so you'd have to do a Defined Benefit Plan, not to mention people don't have that kind of money to start with, so are you telling everybody they are doomed to live under a bridge in a cardboard box?

Jun 22, 2014 02:42 AM #15
Rainmaker
1,030,096
Beth and Richard Witt
Long Island Cash Home Buyer - Center Moriches, NY
Long Island Cash Home Buyer 516-330-6940

Bill ... Great advice... Few give any thought to what they will live on when they retire... Thank God Rich and I gave it lots of thought and have no financial concerns... Old age rocks when you have a lot of $$$$... Folks would be well served to speak with you...

Beth

Jun 22, 2014 04:17 AM #16
Rainmaker
2,285,049
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Bill -  I am hoping that I will enjoy what I have worked for.  People don't plan to fail they just fail to plan.

Jun 22, 2014 04:34 AM #17
Rainmaker
797,007
Liz Wallace
Century 21 Sherlock Homes - Rockville Centre, NY
Broker C21 Sherlock Homes, Rockville Centre, LI, N

I came over by way of Kathy and I also think this was a real eye opener.

Jun 22, 2014 04:56 AM #18
Rainmaker
249,745
Janice Zaltman
United Realty Group - Boca Raton, FL
South Florida Residential Real Estate

To make money and  to save it is the first step and also to invest well. Some of us got hit hard during the recession and when the stock market crashed. If you lost 50% value in your stock portfolio it needs to recover 100% to get back even which is almost impossible.

Jun 22, 2014 11:51 AM #19
Rainmaker
247,189
Brien Berard
Remax Professionals Laurel MD - Laurel, MD
Maryland Real Estate Agents - Laurel Real Estate

$5000 a month?  Holy Cow!  I am in trouble.  Looks like I will be working till the day I die.

Jun 23, 2014 05:28 AM #20
Rainmaker
371,013
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

Ouch - a little too late for me! But, 62 and still having fun, so no retirement soon. Gonna grab a few more Investment Properties first!

Jun 23, 2014 12:24 PM #21
Rainmaker
3,331,885
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Too much instant  gratification and not enough planning ahead !

Jun 23, 2014 09:52 PM #22
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Elizabeth Weinetraub asked where my numbers came from, and then talked about the various ways one can either save or defer income taxes.  Those are good points.

First, tax deferal.  There is an undercurrent among finance people, and I admit that I'm one of them, that believes saving money that has already been taxed is often a better position than the rules that allow tax deferral, especially when it is likely that many who take that route will, in the end, be stuck with paying taxes that are about the same as they would have had they paid them in the beginning.

Second, my formula is not my invention or a maverick idea.  Some of my collegues even believe that the most a person may be able to comfortably withdraw each month without the worry of depleting his account before he passes away, is more in the neighborhood of 3%.  (I think that to be a bit too conservative.)  Most of us hold to the 4% figure.

Here's why:  You are putting money away that 1) will be spent at a future date that begins, say at 65, and could likely continue until you are well past 90. (How much will the purchasing power of the dollar diminish over those 30 years?)  2) could be substantially diminished in value along the way as a result of economic downturns and 3) you may have to draw out more each month than 4% of the remaining total investment.  Will there be enough in your account to allow you to do that and still remain financially independent?  We believe the 4% factor has a reasonably good opportunity to provide safety.

The 4% figure -- what we divided $50,000 by -- takes these contingencies into an educated accounting and resolution.

But finally, throwing up your hands and ignoring some kind of defined savings plan because you can't save the amount the formula says you'll need, is totally idiotic.

Nevertheless, my post is not to provide individual financial advice. It is to point out to readers that they need a plan, and that they should consult with a well-educated, independent financial and tax advisor to determine how to go about comprising one.

While I offer this service and have for almost fifty years, many others do as well.  I do it for a flat fee.  I don't sell any investment or insurance products. Others do it that way as well.  We don't believe it is prudent to ask for and use overall financial advice from anyone who sells those products.  Their job should be to provide the products, not opine as to how to build, adjust and maintain your portfolio.  That's what we do.

Jun 23, 2014 11:48 PM #23
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