In this episode, Troy Sharpe, CFP®, walks you through the process of figuring out if Tim and Jane can retire, after saving up $1 million dollars (they have $900K in a Qualified Account, an IRA and $100K in a Non Qualified Account,) with $100K in income for the first 10 years, then $75K thereafter. This case scenario walks you through the probability of their success, making it through their retirement without running out of money.
00:00 Introduction
01:00 Tim and Janes situation – retirement planning inputs
02:38 Tim and Janes spending goals in retirement
04:50 Where do you have your retirement savings, IRA, Roth IRA, Savings, Investments
08:54 Social Security Benefits breakdown for Tim and Jane
10:54 Tim and Janes net worth breakdown
11:10 Asset Allocation of Portfolio Step 1 Oak Harvest Retirement Plan
11:51 Monte Carlo simulation results for successful retirement
13:38 Looking at one of the Monte Carlo Trial Simulations
14:51 Sequence of Returns Risk example
17:02 Risk Tolerance of Tim and Jane
17:28 Taking a look at Social Security and When to Take it
19:48 Visual display of Base Spending with Go-Go spending plan
21:38 Modifying the parameters to increase chances of retiring successfully
30:15 Closing Remarks
Working with a CFP® professional can be an important step toward reaching your financial goals. Not only do these advisors meet rigorous education and experience requirements, but they are also held to some of the highest ethical and professional standards in the industry.
Education
CFP® professionals must master nearly 100 integrated financial planning topics, including:
– Investment planning
– Tax planning
– retirement planning
– Estate planning
– Insurance planning
– Financial management
In addition to completing a comprehensive financial planning curriculum approved by the CFP Board, or equivalent academic coursework, CFP® professionals are required to complete continuing education coursework, including a CFP Board approved code of ethics course, to ensure their competence in financial planning.
Examination
CFP® candidates must pass a comprehensive 6-hour CFP® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. The exam is notoriously difficult and only 64% of people who took the exam in 2017 passed. Based on regular research of what planners do, the exam covers:
Establishing and defining the Client-Planner relationship
Gathering information necessary to fulfill the engagement
Analyzing and evaluating the client’s current financial status
Developing recommendations
Communicating recommendations
Implementing recommendations
Monitoring the recommendations
Practicing within professional and regulatory standards
Experience
CFP® professionals must have a minimum of three years experience in the personal financial planning process prior to earning the right to use the CFP® certification marks. As a result, CFP® practitioners possess financial counseling skills in addition to financial planning knowledge.
Ethics
As a final step to certification, CFP® practitioners agree to abide by a strict code of professional conduct, known as CFP Board’s Code of Ethics and Professional Responsibility, that sets forth their ethical responsibilities to the public, clients and employers. CFP Board also performs a background check during this process, and each individual must disclose any investigations or legal proceedings related to their professional or business conduct.
Do you have a retirement plan that goes beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at (877) 404-0177
If you have $500K or more and would like a partnership with a firm to help you manage your investments and financial plan as in these videos, click on this link to connect with our advisors:
#incomeplanning #retirementplanning #retirementincome #retirewith1million…(read more)
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Planning to retire at 62, house paid off, zero debts, 1.3 m in IRA, cd's ladder 1-4 years. Would like to enjoy life while able to, will slowly quit my job from ft and slowly transition to part time, then by 62 complete retirement.
My parents were outliers. My father lived to age 95, and my mother will be 96 this year. While this is not the norm, plan for it just in case.
Any good life insurance for a 62 year old ?
How many Americans even have 100 k in savings?
Depends on how U want to live.
I retired at 42 with usd3.9million….it’s working out quite well and can have everything I would like…. I do have passive income too though.
I am now 49 and comfortable. I just live within my means as I always have.
16 % inflation plus stock market meltdown how's that million doing?
Why not just create Income streams instead of saving until your much older and praying for the best?
I love how these CFP try to manipulate the ACA ( Obamacare) to get the tax payer to pick up the tab for this very expensive healthcare coverage. This always seems to come back to how much can you depend on luck, government, and taxpayers to make your retirement goals.
My grandmother is 96 and still gardening, driving, water aerobics, and mowing… there are stats on if you have a centennial in your family you're something like 20x higher percentage to be a centennial yourself….so I'm planning on living until 100.
Thank the biden administration for the highest inflation in 30 years… Never vote democrat
Excellent presentation.
I have my mortgage paid off (12 years ago) and am less than one year from retirement. I will receive a pension and social security as well as wife's 401K and social security. I need to know how aggressive I should be with my 401K stock/bond ratio given the other sources of income. Am planning to split 50/50 Vanguard Wellesley/Wellington. Not aggressive enough? Too aggressive?
60? 60 is too young to retire. Your Federal welfare, SS, check will be larger if you wait until 70.
No. Also not that 75k is not going to be worth much when you are 80. 1 million $ is not really very much these days.
This is probably for only 4% of the population. The rest have no savings
ZZzzz… Just answer the question posed in the title of the video.
You run on too much about other factors. You can’t make your audience retirement experts in one video.
Hit one or two big points then wrap it up!
Your federal welfare check, SS, will be larger if you wait until you are 70
Of course you can live on $100K and year for 10 years and $75K a year there after.
If you have near full social security each (so over $70K right there), and/or one of you has a pension…
But you most definitely can't take that much out of your $1M retirement savings account. Not even close.
No.
Do u have social security?