financial planning for retirement Archives - ROI TV

Are You Retirement Ready? Here’s How to Grade Yourself and Improve

Joe Anderson — Tue, 22 Apr 2025 11:04:27 +0000

I talk to a lot of people who feel overwhelmed by retirement. And honestly, I get it—80% of Americans don’t feel ready, and only 1 in 5 actually feel financially secure. That’s a failing grade for most of us when it comes to retirement readiness. So today, Big Al and I decided to help you put a grade on your own plan—and more importantly, show you how to improve it.

The Retirement Report Card: Where Do You Stand?

Let’s start with the honest truth: most people are failing retirement readiness. Only 20% of people are doing okay, while 34% are borderline, 30% are at risk, and 20% are way off track.

That’s a wake-up call—but also an opportunity. If you know where you stand, you can take steps to fix it. And that starts with asking the right questions.

What You Need to Know (and Track)

You’ve probably heard the big questions before:

How much do I need to save?
Am I saving enough right now?
When can I retire?
What will my monthly expenses look like?

But here’s the thing—these aren’t just questions. They’re the foundation of your retirement strategy. And if your expense estimates are off or you’re not thinking about taxes, your whole plan can get derailed.

Taxes, especially, are a big deal in retirement. You might think you have $1 million saved, but how much of that will the IRS take? You need a tax strategy that protects your savings.

Setting the Right Targets

Savings goals should be based on what you want your retirement to look like. What are your annual expenses? What income sources will you have? Your net worth matters here—but remember, there’s a difference between liquid assets (like IRAs and 401(k)s) and personal assets (like your home or car).

Home equity is part of the equation, but unless you’re planning to downsize or take out a reverse mortgage, it’s not a spendable asset in most cases.

Overcoming Common Savings Challenges

Look, we get it—53% of people say they can’t afford to save more, and 19% say they don’t even know where to begin. The solution? Pay yourself first. Automate your savings. If your employer offers a match, take it. Increase your contribution every time you get a raise. Save your bonuses. Just start. You can’t afford not to.

How Does Your Generation Compare?

Here’s how average retirement savings break down by generation:

Boomers: $400,000+
Gen X: $200,000
Millennials: $100,000
Gen Z: $35,000

Given their ages, Millennials and Gen Z are doing surprisingly well—but there’s always room for improvement. Fidelity recommends having six times your annual salary saved by age 50, so benchmark yourself and make adjustments.

Boost Your Retirement Readiness

Want to boost your grade? Try this:

Set a savings goal based on your target retirement age.
Automate your savings.
Take full advantage of employer matches.
Cut back on big discretionary expenses (like new cars or luxury travel).
Focus on consistency, not perfection.

Portfolio Construction: Diversify and Align

A solid retirement portfolio includes a mix of U.S. and international stocks, bonds, and short-term investments. Younger investors can lean more aggressively into equities, while those approaching retirement should take a more balanced, conservative approach.

The right mix depends on your goals, risk tolerance, and how much you need your investments to grow.

How Much Can You Safely Withdraw?

Let’s talk strategy. The general rule of thumb is a 4% withdrawal rate from your retirement portfolio to help your money last. But this can vary. More aggressive portfolios might allow you to withdraw 6% or 7%—but that also comes with higher risk. You could run out of money if the market turns against you.

Navigating Market Volatility: Rebalance, Don’t Panic

We got a great question from Cindy about adjusting portfolios during a market downturn. Our answer? Rebalance—don’t panic. Rebalancing is a smart way to keep your strategy on track by selling high and buying low.

Trying to time the market usually backfires. Stick with your long-term plan and make strategic adjustments—not emotional ones.

Final Thoughts

If you’re feeling like your retirement grade isn’t where it should be—don’t panic. The goal isn’t to be perfect. It’s to be prepared. A good plan considers your savings, expenses, taxes, and investments—and keeps adjusting as your life changes.

So go ahead—grade yourself. And if you’re coming up short, take one step today to improve your score.

Until next time,
Joe Anderson, CFP®
Co-Host of Your Money, Your Wealth

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 Are You Retirement Ready? Here’s How to Grade Yourself and Improve appeared first on ROI TV.

Retirement Planning Strategies for 2025

Joe Anderson — Tue, 08 Apr 2025 11:24:45 +0000

If you’ve been feeling unsure about your retirement plan—or haven’t made one at all—you’re not alone. On this episode of Your Money, Your Wealth, I sat down with Joe Anderson, CFP®, and Big Al Clopine, CPA, to unpack what retirement planning really looks like in 2025. From financial makeovers to smart tax strategies, we broke down practical ways to help you retire on your terms.

Why a Retirement Makeover Matters Now More Than Ever
Inflation, market swings, and increased longevity mean our money needs to stretch further than ever. Just consider this: in 2016, average monthly expenses were around $3,500. By 2021, that number had jumped to $4,500. That’s an extra $12,000 per year! No wonder nearly half of retirees today say they’re spending more than they expected.

That’s why having a clear, documented financial plan is essential. Yet, only 17% of Americans have one in writing. A solid plan keeps you on track and gives you the power to course-correct when life throws surprises your way.

Benchmarks by the Decade
Not sure if you’re on track? Use these savings benchmarks as a rough guide:

By your 40s: aim for 3x your annual income
By your 50s: 6x
By your 60s: 10x

So if you’re earning $100,000 a year, you’d want around $300,000 saved by your 40s and $1 million by retirement. These aren’t hard rules, but they’re great starting points—especially when you factor in Social Security or a pension.

Stress-Test Your Retirement Plan
A financial plan isn’t “set it and forget it.” It needs to work under different assumptions—like higher inflation or lower market returns. We looked at John and Sally, both 57, with $1 million in 401(k)s and $50,000 in cash. Spending $140,000 a year, they ran out of money by age 82. Working longer, spending less, or downsizing their home could change that dramatically.

Avoid the Hidden Costs of Early IRA Withdrawals
Thinking about tapping into your IRA early? Be cautious. Taking $100,000 out before age 59½ could cost you $38,000 in taxes and penalties—especially if you live in a high-tax state like California. That’s money that could’ve grown for decades had it stayed invested.

Streamline and Simplify with Account Consolidation
Multiple 401(k)s and IRAs can make managing your retirement messy. Consolidating accounts not only reduces paperwork and fees but simplifies your required minimum distributions (RMDs) later on. Instead of juggling separate RMDs for each 401(k), you’ll only need to calculate one for all your IRAs.

Don’t Leave Free Money on the Table
If your employer offers a 401(k) match, make sure you’re contributing enough to get the full benefit. Even small increases matter. One example showed how bumping contributions from 2% to 6% boosted savings from $119,000 to $356,000 over time. Ideally, you should aim to save 15–20% of your income, but starting small and building up works too.

Why Roth IRAs Should Be Part of Your Tax Strategy
Most people stash retirement savings in tax-deferred accounts like 401(k)s—but come retirement, those withdrawals are taxed as ordinary income. That’s where Roth IRAs can shine. Contributions are taxed upfront, but qualified withdrawals are completely tax-free. They’re especially great for stocks or high-growth investments.

And here’s the kicker: tax brackets are scheduled to go up in 2026. That makes now a smart time to explore Roth conversions and lock in lower tax rates while you can.