Are you ready for retirement?
Oct 19, 2011|
Mark Singer, author of "The Changing Landscape of Retirement", talks with Tom And Todd about how important it is to make sure you start getting ready now!
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
We are joined by -- boxing and He is the author of the changing landscaper retirement and god. Of all the landscapes that have changed in the United States of America -- the last twelve -- or so years and even more rapidly more recently I can -- every -- this issue is unbelievable every capital like this He has to be people retired. Now now not summon up so much done right the marks on his can shed some light -- delighted to be able to join us in on the Thomas to Russia the morning mark. Good morning you are absolutely correct gentlemen. There it's so much fear out there at the landscape has changed. You know with 101000 baby boomers -- retiring. They're actually the reality of their retirement is very different than what they thought their dreams of retirement would be ten years that. You mean Home Depot jobs what that wasn't for originally part of the retirement plan. Home deep -- work amid the daily -- if they handed out baloney I mean there's all sorts of those part time jobs cystic pick up that extra you know 10151000. Dollars that is necessary. And what's going. It's it's difficult you know it but that the thing that you know yeah you know what's gonna. So this moment and what's gonna change it in other words. Well it's interesting because you know this is national states for retirement week. And the focus it is that we have not done as a society a very good job of -- putting the burden on ourselves. -- -- -- Because. With the lack of returned to into the markets over the last ten to eleven years. In a perfect storm environment where we are as a baby boom generation getting closer and closer to retirement. We have relied upon. Pension plan that really no longer exist in terms of they're giving us the defined pension. A Social Security plan which we all know is in trouble. So we're relying upon monies that we didn't put in enough that we're expecting more returns then we should. And then the last eleven years didn't get any. Return all right so people did what they were supposed to do triple whammy it's not working out it's not work so what are what are Americans supposed to do it's a real -- Well really. The question is is many questions from for those who were looking to retire now. -- they really have to step back and do some planning to find out. What is what would they like to do in retirement. Where aren't they relative to what they wanna do so or a lot of people were. Tiring it without doing an analysis and finding out after the fact that they're just isn't enough income. We got an email just two weeks ago He said -- I'm retiring on December 1. I need to do some planning. Well I'd have to resort -- plus pop pop pop pop pop. I guess so while we are. And I got to be honest with you got to be honest with you I find that most people don't seriously consider. And the transition of retirement. Still read it five to seven years out why is that. Hey we got kids we got college and we got cash flow issue. And for many you know if you're in a 401K plan -- for a three people were employer sponsored. Then you have the automatic way to do this savings but even then a third of those -- it involved with those. Don't date and neat thing. So that's a real national crisis are right there -- the -- cash realities you mentioned those for those just for those younger couples who might even have a dim awareness of what the future risks. You mentioned that you mentioned college tuition cash flow problem Korea problems college debt whatever it might be what's today looking at the scene as you've been evaluated mark. What today should those younger couples we -- I think for all the folks you know the ones who don't even stop thinking about it you know 22 months before. -- -- erode ghost but how do you prevent. The next generation from fallen to the similar trap. Well it its interest because I think the biggest lesson that I have learned in my 25 years of running -- planning firm. Is that my clients can successfully retired. They were for a long period of time putting small pieces of monies away on a consistent basis. Think we're putting down ten dollars a week twenty dollars a week hundred dollars a month consistently over thirty or forty year here. Of people right now mark I don't think no we're even put them money used to you could put in the bank and something good might happen when He -- you. Let us forget about the fact that for the moment the market is not working in the reality is it sounds like. Dead over the next three or four years it may still not be working. But that's just part of historical cycles we go in the cycles and their long cycles. But also history shows certainly with no guarantees for any future performance. But if we -- through this secular bear market we have no returns. For another three to four years which would put it in a place. Where we haven't had to return for fifteen or sixteen years. And history tells us that after that is over we have spectacular boom years that could last ten or fifteen years. So. In 401 case -- for a three -- even if you wanna just put it in very conservative investment vehicles don't let the fact. That the stock market is not cooperating at this moment. Deter you from putting money away is the stock market keep doing. Well it. Balance not just the stock market if you just wanna do 40% in the stock market in 60% and in that the conservatives do that. But the discipline of putting away is more important than what you put in. Okay what's the other thing that people should be putting their money into besides stock market. Well you've got the stock market you've got fixed income which is bonds. You've got alternative investments which have really taken hold the past few years alternative investments are those investments. That do not -- moves like the traditional stocks and bonds and those can include. Commodity funds currency fund long short. Absolute return. Macro global fund they're just mutual funds to put little pieces of money away that time. But you should have depending upon your circumstance. Anywhere from fifteen. To 30% of your allocation. In alternative so if you had a 30% stuck. 30% alternatives -- 40% in fixed income at least that would give you a balanced. Portfolio. That would potentially help you over the next three to four years and certainly should help to -- over the next 2030. Or forty years -- So the -- lesson for people saving for retirement is keep doing it don't be scared by the the bad performance in a row now. Little pieces of money and if you wanna go on our web site it your retirement journey dot com we have a tool it's a retirement road map. And you go win -- and you could flood the numbers you know how much money do I have. How much money in my gonna save what's my assumed greater return. How much Mike and a half for accumulated net stick when I retire will -- be enough so they go on the web site. It's your retirement journey dot com they can at least get a start on. And what is the the ballpark for what the average person needs to have -- assets. To retire. -- I hear that question every day and I hate to defer it all depends on your situation that's my -- for average -- not I mean do you need it. If you -- 50000 dollars a year yeah. And you get 2000 dollars a month from from Social Security. And you get 15100 dollars and pensions for 3500 dollars. Then you need an extra 15100 dollars a month you probably need about a half a million dollar portfolio. In order to generated some numbers -- scary. You're saying a half million dollars generates 50 I'm sorry no that portion of the fifty -- Greg needs correct. So and what's scary even for those who have a million dollars and now they're expecting to get a 100000 dollars -- it's ridiculous what what do you yet. Well it it it's about financial planning principles that we basically say that He should take no more. That's 4% of the total value of the portfolio annually. -- percent. That or you should expect him. No Georgia which is it not so much to yield that the dividend and I don't wanna you know going to that at the moment however if you take 4% over time. And if you also incorporate what inflation should be then you should never be dipping into principal over the long term. Okay OK I mark singer author of changing landscape of retirement check him out your retirement journey dot com thank you sir. A little perspective -- How not to panic every interest lot of people are very very time a retired people when they should be fixed income they should be and it's it's not fixed -- -- yes. -- aliens but no don't Irish 10:10 I am I am right and of that of real I was release of us -- -- have been nothing real estate tycoon you are mad at him. None of the deferred income on a regular basis and I'll -- the match -- and I'll put away got to get it. -- -- put away everything that I can and in terms of its new line thank you -- sell your house if yet. The white panda. Yeah could I sell -- house -- yelling get what you think He would use the house that yes yes and oh yeah it's Ellis park Ohio now. Yeah. It's -- -- I mean what may be good right now and we paid. Like treaty. -- -- -- 34000 miles house back in the eighties meaning yet so -- probably make at least. You music seller for -- -- -- -- -- six or seven times that it would have -- if a thirty does not have repaid government the but it's not c'mon it's. About 5 am we're ahead of an act in and you go to the with that we put in that computer lines or can make cookies communities. John your WRKO. Yeah it's it's kind of it worked out -- are you with all -- Boehner and possibly get it back bat in the grand prize. Our proper of the united pick -- -- presidential you don't let it -- Abdullah dropped out jointly -- presidential seal up and yeah -- announced. It's I was ready to part time I've discovered from Park City. The guy who literally. Changes ID registration depends you told me so I'd -- I know I'll I'll I'll dollars I've found out what you did you know what happens by jaw dropped as -- -- -- called me you frauds that I got what I top. Democrat never make. I said you are fried it's the end up and be -- mail but but -- -- play in the game in coach you ran for City Council He did the same thing you'd and He joined a party. That it matches ideals He joined the in the news dot hop wick He stopped way. I have to stand up -- -- -- man by state staying at the party of people would not vote for you specifically because they're Republican and a nonpartisan race. That's how stupid Democrats are quite happy to get -- to infiltrate the party and its agents from the inside. -- -- And I didn't infiltrate a bad they're all for only -- is that sometimes -- signs are suspects and sometimes it's a little bit embarrassing just I keeps I haven't been successful in my epic album maybe I need to put more prosperous and well hot hot. 01 stop shop for every program going on in the world. This news Boston news talk station KPM six a W Ontario.