EASI Retirement System: Lisa and Mike’s Path to Financial Security
Retirement planning often feels overwhelming, but with the right tools, it can be simplified. Joe Anderson and Alan Clopine, hosts of Your Money, Your Wealth, introduced the EASI Retirement System to help individuals like Lisa and Mike take control of their financial future. Let’s dive into their story and see how the EASI tool provided clarity and actionable solutions for their retirement journey.
Lisa and Mike’s Starting Point
Lisa, 60, and Mike, 58, came to Joe and Alan with concerns about their retirement readiness. They had worked hard to save $400,000 in a 401(k) and $60,000 in a brokerage account. Their combined income was $106,000, and their annual expenses amounted to $70,000. Like many others, they hoped Social Security benefits of $50,000 annually would bridge the gap. With plans to retire at 67, Lisa and Mike wanted to know if they were on the right track.
Running the Numbers with EASI
Joe and Alan introduced them to the EASI Retirement System. By entering details like income, current savings, home value, and expected expenses, the tool calculated their financial trajectory. The results were sobering—the software projected that their savings would be depleted by 2043 if no changes were made. This wake-up call highlighted the need for adjustments to secure their financial future.
Adjusting the Plan: Strategies for Success
The EASI tool didn’t just highlight the problem; it also guided Lisa and Mike toward actionable solutions:
- Boosting Savings: Increasing their savings rate from 6% to 20% of their income significantly improved their financial outlook. While challenging, this adjustment ensured more robust retirement savings.
- Extending Work Years: By delaying retirement by a few years, Lisa and Mike could increase their Social Security benefits and add to their savings. These extra working years made a significant difference in their financial projections.
- Tax Diversification: Joe and Alan recommended shifting some savings into Roth IRAs to reduce future tax burdens. This strategy provided more flexibility and less taxable income in retirement.
- Optimizing Investments: Adjusting their portfolio to balance growth with preservation of capital ensured their nest egg would last longer.
Addressing Potential Challenges
Retirement planning isn’t just about numbers; it’s about preparing for the unexpected:
- Healthcare Costs: Joe and Alan reminded Lisa and Mike to account for medical expenses, which a Fidelity study estimates at $315,000 for a couple from age 65 onward.
- Market Fluctuations: Maintaining a diversified portfolio helped them weather market ups and downs without derailing their plans.
- RMDs: Required minimum distributions (RMDs) at age 73 or 75 were factored into their plan to avoid tax surprises.
Why the EASI Retirement System Works
The EASI Retirement System provided Lisa and Mike with a clear, actionable roadmap. The tool’s strength lies in its ability to:
- Assess financial readiness with easy-to-understand metrics.
- Highlight gaps in savings and income.
- Offer tailored strategies to meet individual goals.
Conclusion
Lisa and Mike’s story demonstrates how the EASI Retirement System can transform uncertainty into confidence. By increasing savings, adjusting timelines, and diversifying investments, they turned a potential shortfall into a sustainable plan. Ready to take control of your retirement? Start your journey with the EASI Retirement System today and build the future you deserve.
YMYW
Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.
IMPORTANT DISCLOSURES:
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.
• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
