asset allocation retirement Archives - ROI TV

Break Through Retirement Barriers with These Smart Financial Strategies

Joe Anderson — Thu, 12 Jun 2025 11:17:01 +0000

Why Most Americans Struggle with Retirement Planning
Joe Anderson and Big Al opened the discussion with a sobering stat: 77% of people don’t have a written retirement plan. Only 21% have one on paper, while the rest rely on mental plans—or no plans at all. Their recommendation? Start with the basics. Calculate your net worth by subtracting liabilities from assets, evaluate your monthly cash flow, and begin saving—even if it’s just $50 per month.

Automate Your Savings Early
Starting early gives your money time to grow, and automating your savings ensures consistency. Set up recurring transfers to your 401(k), IRA, or savings account. Joe and Big Al emphasize the concept of “paying yourself first” to prioritize future stability over short-term indulgence.

Understanding Market Behavior and Diversification
Markets fluctuate. A 15% drop within a five-year period is normal. Joe and Big Al stressed diversification—spreading money across cash, stocks, bonds, and alternative assets—tailored to your timeline and goals. This cushions your portfolio against volatility and avoids emotional, fear-based decisions.

Build an Emergency Fund and Tackle Debt
They recommend saving enough to cover 3–6 months of living expenses in an emergency fund. When it comes to debt, consider balance transfers, consolidation, or negotiating with lenders. Use the avalanche method (highest interest rate first) or snowball method (smallest balance first) to stay motivated and make progress.

Smart Moves for Childcare and Health Costs
Childcare costs can consume up to 27% of a family’s income. Consider a Flexible Spending Account (FSA), which allows $5,000 in tax-free savings. You might also qualify for up to $1,050 per dependent through the child care tax credit. For health expenses, Health Savings Accounts (HSAs) offer another tax-advantaged strategy, with contribution limits of $4,150 for individuals and $8,300 for families in 2024.

Managing Student Loan Debt
Federal student loan debt averages $40,000. Joe and Big Al highlighted income-driven repayment plans as a helpful option. They also pointed out that employers can provide up to $5,250 in tax-free assistance toward your student loans—a benefit more companies are starting to offer.

Boosting Retirement Savings with Catch-Up Contributions
If you’re over 50, take advantage of catch-up contributions: an additional $7,500 for 401(k)s and $1,000 for IRAs. Beginning in 2025, those limits will increase. Redirecting bonuses, tax refunds, or raises into your retirement accounts can accelerate your savings without changing your lifestyle.

The Overspending Trap
Even though 80% of people say they have a budget, most don’t stick to it. Joe and Big Al suggest using budgeting apps, tracking discretionary expenses, and distinguishing between needs and wants. Overspending during retirement—on travel, luxury vehicles, or home renovations—can shorten the lifespan of your savings.

Plan for a Longer Retirement Than You Expect
Americans are living longer—up to 87 years for women and 85 for men by 2050. Many people plan to work into their late 60s, but early retirement often becomes necessary due to health or employment issues. Trimming your budget by just 10% could stretch your savings by five years.

Get Personalized Help with the Financial Blueprint
To make all of this easier, Joe and Big Al recommend using the free “financial blueprint” tool available on the Your Money Your Wealth website. It shows whether you’re on track and what to change if you’re not. With the right tools, a few smart habits, and consistent effort, you can break through retirement barriers and create long-term financial freedom.

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.

The post Break Through Retirement Barriers with These Smart Financial Strategies appeared first on ROI TV.

Real Retirement Plans That Work and Don’t

Joe Anderson — Sun, 08 Jun 2025 12:51:39 +0000

When it comes to retirement planning, no two paths are the same. That’s what I love about what we do at ROI TV diving deep into real stories with real people and real numbers.

This week, we walked through three very different retirement plans John Pierre, Tiger (not Woods), and James & his wife and each one had a different challenge: risk management, lifestyle creep, or navigating legacy wealth. I’ll take you through each, so you can see how we tackled their goals and avoided the most common pitfalls.

John Pierre: A Near-Retiree Without Bonds

Let’s start with John Pierre, age 61, and his wife, 58. They plan to retire in the next year or two and want to spend about $150,000 annually, with $80K for basic expenses and $50K for travel.

Their portfolio? Impressive:

$2M in 401(k)s and IRAs
$500K in Roth accounts
$3M in brokerage
$200K in cash
Zero bond allocation

That last part? A red flag.

Joe and Big Al advised a 20–25% bond allocation—about $1.5M—to create a 10-year buffer of “safe money” during potential market downturns. That allows the rest of their portfolio to stay in equities for growth, but with a cushion to ride out the bad years.

We also talked about using municipal bonds in taxable accounts. They’re tax-efficient and can help smooth the process of Roth conversions, which we’re starting in 2025. Risk tolerance is critical here, especially if your gut tells you to sell during a downturn. Build your plan around how you actually behave, not how you wish you would.

Tiger (Not Woods): The Overconfident Millennial Millionaire

Tiger is 33, and he and his wife make $240,000 a year. Their numbers:

$3.2M net worth
$2M in brokerage
$1M in pretax retirement
$150K in Roth
$375K in crypto
$1M home with a 2.75% mortgage

He’s planning to retire when his taxable account hits $2.8M—and that’s excluding crypto. Add to that a potential $5 million inheritance, and you can imagine why Tiger feels like he’s winning the game.

But here’s the warning: overconfidence bias. Just because you hit it big once with a few stocks or crypto doesn’t mean that strategy will work forever.

Tiger wants to cut his retirement contributions, spend an extra $2,000/month, and lean into brokerage investments. Joe and Big Al hit the brakes. Inheritance is not a financial plan. And speculative returns are not predictable. The advice? Stay disciplined, keep saving, and don’t let lifestyle creep sabotage your future freedom.

James & His Wife: Rich in Assets, Not in Income—Yet

James and his wife, both 60, want to retire next year on $180,000 annually. Their portfolio:

$2M in 401(k)s
$2M in deferred compensation
Purchased annuities with GLWBs (guaranteed lifetime withdrawal benefits)

They’ll get:

$47K/year from annuities starting at 65
$20K/year more from annuities starting at 74
$50K/year in Social Security starting at 70

They’re also planning aggressive Roth conversions throughout their 60s to reduce the tax burden before RMDs (required minimum distributions) begin at 73.

Joe and Big Al offered a balanced take. They’re not the biggest fans of annuities (they usually benefit the insurance company more than you), but in this case, they work well as a bond substitute. That gives James room to take more risk with liquid assets to drive growth and liquidity for those planned conversions.

Why Delaying Social Security Matters

If you can afford to delay claiming Social Security, it can be one of the most powerful tools in your retirement plan. You gain 8% per year in delayed retirement credits plus COLA (cost-of-living adjustments).

But it’s not just about the math. Seeing your account balances drop in a market downturn while you delay withdrawals can be scary. That’s why Joe and Big Al always talk about Social Security as longevity insurance. You may not need the money at 62 but you might at 85. Plan accordingly.

Big Picture Advice

Here’s what all three scenarios had in common:

Don’t rely on speculation or inheritance
Keep a balanced asset allocation
Know your true risk tolerance, especially once you stop working
Avoid lifestyle creep your future self will thank you
Make automated saving part of your plan so you don’t spend what you don’t see