With a record number of Americans turning 65 this year—and 30 million more expected to retire by 2030—the financial strain of aging populations is unfolding in real time. But the biggest challenge isn’t just how many people are retiring. It’s how few of them are financially prepared to do so.

The Savings Shortfall

Over 20% of Americans nearing retirement age have no savings. More than half of current retirees hold less than $250,000 in total assets—including their homes. Yet millions are exiting the workforce anyway, often not by choice. Health issues, layoffs, and age discrimination are pushing older workers out before they’re ready. Many are entering retirement without enough to maintain their standard of living.

The Harsh Financial Reality of Retirees

Inflation, market volatility, and limited financial literacy have widened the retirement gap. Social Security, meant as a supplement, has become the primary income source for many. But it’s failing to keep up with rising medical costs and basic living expenses. Poverty among seniors is on the rise, and growing numbers are working physically demanding, low-wage jobs—often for under $15/hour—just to survive.

Even among those who want to keep working, the odds are stacked against them. AARP research shows that 56% of workers over 50 are laid off or pushed into early retirement. Reentering the workforce is hard; reentering it at a livable wage is even harder.

The Ripple Effect on Families

As retirement becomes less affordable, older Americans are increasingly leaning on their children for financial or physical support. That intergenerational burden affects work hours, career growth, and savings for younger adults—especially in lower-income households. It’s a cycle: financially insecure parents often raise financially insecure children, compounding economic strain across generations.

A Global Problem with No Easy Fix

America isn’t alone. Countries with more robust public benefits, like Japan and many in the EU, are facing similar problems. Governments worldwide are raising retirement ages and urging people to work longer—measures that are deeply unpopular and, in some cases, unfeasible for workers in physically demanding jobs.

Two Retirement Extremes

We’re seeing two diverging paths. On one hand, a small but vocal group of financially independent individuals—often younger and tech-savvy—are retiring early by living modestly and investing aggressively. On the other hand, millions of Americans are retiring with little to no plan, often relying on family, part-time work, or minimal public assistance to scrape by.

How to Prepare for the Inevitable

The only real solution for most individuals is to take responsibility early. That means saving in retirement accounts like 401(k)s or IRAs, building emergency funds, and understanding that Social Security may not be enough—or even guaranteed.

Financial literacy is no longer optional. Without it, today’s workers could face the same hard decisions many retirees now regret: selling their homes, cutting back on healthcare, or becoming financially dependent on their kids.

The Bigger Picture

An aging population with insufficient savings doesn’t just affect families—it reshapes the economy. Fewer workers and more retirees means higher taxes, more public spending, and fewer people contributing to economic growth. And with wealth inequality among boomers growing wider, a small group will live comfortably while millions face financial fragility.

This isn’t a hypothetical scenario. It’s the world we’re already living in.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post The Retirement Reality Check: Aging Populations and the Financial Strain Ahead appeared first on ROI TV.

Are Retirees Actually Running Out of Money?
You may have heard that 45% of Americans retiring at 65 will run out of money. That stat gets thrown around a lot, but it’s based on outdated models that assume retirees spend the same amount every year, regardless of what’s happening in their life or the markets. In reality, retirees adjust. Many cut back even when they don’t have to. Wealthy retirees hold back too—worried about unexpected healthcare costs or market volatility. The truth is, most people adapt instead of blindly depleting their nest egg.

Spending in Retirement Isn’t Linear
Research from David Blanchett and T. Rowe Price shows spending in retirement tends to decline by about 1% to 2% per year. Yes, healthcare costs may rise, but other expenses like commuting, housing, and entertainment often go down. Some retirees follow a “retirement smile” spending pattern—more in the early years, less in the middle, then a modest rise later for medical costs. This natural decline in spending means your portfolio doesn’t need to be as large as you think. If you plan to spend $60,000 a year, you might only need $835,000—not $1.5 million.

Why Dynamic Spending Strategies Work
Instead of a rigid withdrawal plan, many retirees use dynamic spending strategies. That means adjusting withdrawals based on market performance and personal needs. Set guardrails. Adjust annually. Doing so boosts the odds your money lasts for life. It’s flexible, responsive, and realistic—because life is rarely linear.

Retirees Make Real-World Adjustments
About one-third of retirees in their 60s consider part-time work or consulting to supplement their income. Others downsize or move to lower-cost areas. Some rely on family temporarily. Retirees don’t just let their accounts run dry—they respond, adapt, and take control. That’s what real retirement looks like.

Retirement Confidence Is Higher Than You Think
According to the 2025 Retirement Confidence Survey, 78% of retirees say they feel confident about having enough to live comfortably. That’s even higher than the 67% of pre-retirees who feel the same. Confidence actually grows once you retire. Why? Because you realize life doesn’t stop, and the sky doesn’t fall.

Don’t Believe the Headlines
Alarming headlines claiming half of retirees will run out of money ignore how people actually behave. These models don’t consider flexibility, Social Security, pensions, or retirees picking up part-time work. They don’t factor in that people tend to spend less over time. It’s not that retirees are perfect—it’s that they’re practical. And they do what it takes to make it work.

Planning for a Confident Retirement
You don’t have to retire scared. With proper planning, flexible strategies, and a willingness to adjust, retirement can be more secure than you imagined. Don’t base your future on fear. Build it on facts—and give yourself the grace to adapt as life evolves.

Retirement isn’t about knowing exactly what will happen. It’s about being ready no matter what does.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post Will I Run Out of Money in Retirement? Here’s the Real Answer appeared first on ROI TV.

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.

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

We say this every week, but it’s worth repeating: retirement planning isn’t just about the numbers. It’s about behavior, discipline, and having the flexibility to adapt as life evolves.

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 Real Retirement Plans That Work and Don’t appeared first on ROI TV.

The Power of Compound Interest and the Rule of 72

We kicked things off by highlighting compound interest, famously referred to by Albert Einstein as the “eighth wonder of the world.” Unlike simple interest, compound interest grows your money exponentially over time by earning interest on both your initial investment and accumulated interest.

They broke down the Rule of 72, a simple formula to estimate how long it takes for an investment to double. Divide 72 by your expected rate of return: a 7% return means your money will double in about 10 years. But at 2%, it takes a staggering 36 years. Clearly, rate of return and time are your biggest allies.

Start Early, Save Consistently

To drive home the importance of starting early, they compared saving $100 a month beginning at age 25 versus age 35. That 10-year head start could result in an additional $100,000 or more in savings over a lifetime thanks to compounding. Even modest annual increases in savings can have a profound impact on retirement outcomes.

Calculating Retirement Spending and the Shortfall

Next, we explained how to calculate retirement needs. Start with your current expenses and adjust for 3% inflation. Subtract expected income like Social Security, then multiply the annual shortfall by 25 to find your target retirement savings. For example, someone expecting $144,000 in annual expenses with $55,000 from Social Security needs to fund an $89,000 shortfall. Multiply by 25, and you get a $2.2 million savings goal.

Understanding the “Retirement Smile”

Spending in retirement isn’t linear. I want to introduce you to the “retirement smile”: higher spending in early retirement (“go-go years”), a dip during the “slow-go” years, and a rise again due to healthcare costs in the “no-go years.” Many retirees spend more in retirement than they expected, making accurate planning crucial.

Applying the 4% Rule

The 4% rule remains a helpful benchmark. If you retire with $1 million, withdrawing $40,000 per year (4%) gives you a strong chance of not outliving your money, assuming a 6% return. However, the duo stressed that withdrawals should be adjusted dynamically based on market performance and personal needs.

When to Claim Social Security

Social Security claiming strategies also play a huge role. Claiming at age 62 could reduce benefits by 30%, while delaying until 70 can boost payments to 124% of your full retirement amount. We suggested evaluating factors like health, income needs, and whether you’re still working when making this decision.

Reevaluating the Rule of 100

The traditional Rule of 100, which suggests subtracting your age from 100 to determine stock allocation, was challenged. They argued that allocation should reflect individual risk tolerance, goals, and legacy plans. For example, a risk-tolerant investor may opt for more stock exposure, while others may want more cash for security.

Tax Planning and Roth IRA Conversions

One of the most actionable strategies they shared was Roth IRA conversions. With tax rates expected to rise in 2026, converting pre-tax retirement funds now could yield massive long-term savings. Converting in lower tax brackets (like 12% or 24%) today helps reduce your required minimum distributions (RMDs) and future tax bills.

Tax Allocation Across Account Types

Understanding how different accounts are taxed is another key strategy. Use tax-deferred accounts (like IRAs) strategically during low-income years, and prioritize Roth IRAs for tax-free growth. Taxable brokerage accounts provide flexibility but may generate capital gains.

Plan for Longevity

With life expectancy on the rise, couples have a 50% chance one partner will live to 92. We emphasized planning for a longer-than-expected life to avoid outliving your money, especially considering rising healthcare costs.

Use the Retirement Readiness Guide

Finally, the team encouraged everyone to download their Retirement Readiness Guide. It’s packed with practical tools to calculate savings targets, plan withdrawals, and optimize investments for a confident retirement.

Bottom line: Retirement success is about more than just saving—it’s about making smart decisions across the board. The earlier you start, the more prepared you’ll be to live your best retired life.

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 The Formula for Retirement appeared first on ROI TV.

1. Safe Withdrawal Rate Planning for a High-Net-Worth Couple

A couple aged 58 and 56, with $4.3 million in assets, plans to retire in 2025 and spend $165,000 annually—including $65,000 on discretionary items like vacations. Their portfolio includes $2.6 million in deferred accounts, $1.6 million in taxable investments, and $325,000 in rental property equity.

Joe and Big Al crunched the numbers: a safe withdrawal rate supports $175,000 annually for 35 years, and even $225,000 in the first decade. But market risk looms large. The couple is advised to:

• Develop a diversified investment strategy
• Incorporate Roth conversions early for tax control
• Plan distributions to avoid spikes in ACA premiums

2. Using Roth Conversions After Moving to a Tax-Free State

James Bond—yes, really—asked if moving to a tax-free state like Texas or Nevada to do Roth conversions is legit. With $5.6 million in assets, he’d save serious money avoiding California’s income tax.

Big Al confirmed the move works—but only if it’s genuine. Change your driver’s license, voter registration, and spend at least 183 days there. Anything less could trigger an audit and retroactive tax bills.

3. Single Dad’s Retirement on a Lean Budget

A 54-year-old single father in San Francisco hopes to retire at 62. With $620,000 in investments, $3,000 in monthly rental income, and an $800 monthly parental pension, his goal of spending $72,000 annually is doable.

With smart investing, his portfolio could hit $1 million by 62. Adding in a $25,000 pension at 65 and $3,100 in monthly Social Security at 70, his strategy is conservative, flexible, and aligned with his lifestyle.

4. Stress-Free Career Planning at 45

Rob, 39, wants to scale back his high-stress job in six years, with an eye on early retirement in his 50s. His net worth is $1.8 million, and he saves $60,000 annually.

Big Al projected Rob could grow his portfolio to $2.3 million by 45 and $4.1 million by 55 at 6% returns. The advice? Keep saving, keep investing, and stay open to pivoting into lower-stress work when the time is right.

5. Managing Capital Gains on a Home Sale

A Fremont homeowner was concerned about exceeding the $500,000 capital gains exclusion. With a $300,000 purchase price and a $1.2 million sale value, taxes were inevitable.

After deductions, they face roughly $67,000 in federal and state taxes. Still, they walk away with massive equity and are reminded that the temporary spike in Medicare premiums is manageable given their financial windfall.

6. Pension vs. Lump Sum: What’s the Better Bet?

A 61-year-old with $3 million in liquid assets asked if he should take a $520,000 lump sum or a $38,000 per year pension.

Joe and Big Al found the pension’s net present value was comparable to the lump sum at common discount rates. The choice boils down to:

• Take the pension to preserve liquid assets while waiting for Social Security
• Take the lump sum if you want investment control or to leave a legacy

7. Real Estate Concentration vs. Retirement Account Diversification

Lloyd Christmas (no relation to Dumb & Dumber), a business owner with $7.3 million, prefers commercial real estate and isn’t a fan of retirement accounts.

While his strategy has worked so far, Joe and Big Al warned that market downturns could wipe out income. They advised:

• Opening Roth accounts for long-term tax-free income
• Creating a balanced mix of real estate and paper assets
• Stress-testing his strategy against worst-case scenarios

Final Takeaway: Customize Everything

No two retirement plans are alike. Whether you’re managing $600,000 or $6 million, the key is thoughtful strategy. That means managing taxes proactively, preparing for market downturns, and being honest about your lifestyle needs. With the right plan—and the right team—you can design a retirement that fits your future, not just your finances.

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 Real-Life Strategies for Taxes, Withdrawals, and Wealth Building appeared first on ROI TV.

Retirement Planning for Jay and Her Husband

Jay and her husband are planning to retire in their late fifties or early sixties. Their current financial situation includes $285,000 in retirement savings, $200,000 in Roth IRAs, $85,000 in a rollover IRA, $75,000 in a Roth 401(k), and $10,000 in a brokerage account. Jay expects to receive a $50,000 annual pension starting in her early sixties, while her husband anticipates Social Security benefits ranging from $1,250 at age 62 to $2,450 at age 70.

Their assets also include a primary home valued at $800,000 with $330,000 remaining on the mortgage at 3.25% interest, and a rental property worth $800,000 generating $30,000 annually in net rental income. With monthly expenses around $8,000 and inflation-adjusted retirement expenses projected to hit $137,000 annually in 12 years, the team recommends aggressive saving to reach $1.5 million in retirement assets. Leveraging Roth IRAs, a Solo 401(k) for her husband, and maintaining a stock-heavy portfolio are key strategies due to their long investment horizon.

Asset Allocation and Investment Strategy

Jay’s Roth IRA and brokerage accounts are predominantly invested in stocks, aligning with her long-term goals and the presence of a fixed-income pension. The team supports this strategy, emphasizing low-cost index funds for diversification and growth. They also recommend continuing to max out Roth IRAs and contributing to a Solo 401(k) for her husband to optimize tax-free growth.

Bridging the Retirement Income Gap

To bridge the gap between early retirement and the start of pension and Social Security benefits, Jay and her husband plan to use their brokerage account, rental income, and retirement savings. They are considering selling their primary home and moving into their rental property to unlock equity and reduce living costs. Calculating inflation-adjusted living expenses is crucial to ensure their savings last without depleting assets prematurely.

Pension vs. Bond Investment Comparison

A question from Micah in South Dakota asked whether a $40,000 annual pension equates to having $1,000,000 in bonds under the 4% rule. Joe and Big Al confirmed that it is indeed comparable, as $40,000 annually from a pension matches the income generated by a $1 million bond portfolio withdrawing at 4% per year. While pensions offer guaranteed income and stability, bonds provide flexibility but come with market risks.

Roth Conversion Strategy for Barney and Betty

Barney and Betty, both retired, have $1.3 million in tax-deferred IRAs, $200,000 in Roth accounts, and $34,000 in pension income with cost-of-living adjustments. They plan to receive $60,000 annually in Social Security starting at age 70, with monthly expenses ranging between $6,000 and $7,000.

The team recommends maximizing Roth conversions up to the 12% tax bracket to lower future required minimum distributions (RMDs) and optimize their tax position. They explained the difference between marginal tax rates, which apply to Roth conversions, and effective tax rates, which are blended averages. Taking advantage of the 12% bracket allows for strategic tax planning.

General Retirement Planning Advice

The team emphasizes the importance of setting long-term goals, calculating future expenses with inflation, and targeting a specific savings amount to achieve financial independence. Leveraging tax-advantaged accounts like Roth IRAs and Solo 401(k)s, maintaining a stock-heavy investment portfolio for growth, and planning for cash flow needs during retirement are crucial. Consulting with financial professionals can help optimize complex scenarios involving multiple income sources and varied retirement timelines.

Conclusion

Successful retirement planning involves strategic saving, smart asset allocation, and careful tax planning. By leveraging tax-advantaged accounts, investing in low-cost index funds, and bridging income gaps with diversified savings, retirees can ensure lasting financial security and the flexibility to enjoy their golden years.

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 Answering Viewer Questions on Retirement Planning, Roth Conversions, and Income Optimization appeared first on ROI TV.

Retirement Planning with Multiple Income Sources
Jack and Swann from Florida are a classic example of multi-bucket retirement planning. With a mix of tax-advantaged accounts, Roth IRAs, and taxable savings, plus a $30K annual pension (no COLA), they’re well-positioned. Their advisors recommended not paying off a 2.5% mortgage early and instead using Roth conversions in retirement to reduce long-term tax liabilities.

Using Roth Conversions Before Tax Hikes Hit
Kevin from Arizona had over $7.9M in assets and wanted to minimize future taxes. The advice? Delay Social Security to age 70 for maximum benefits and take advantage of Roth conversions in 2025 and 2026—the final years of current lower tax brackets. Converting up to the top of the 22% bracket may offer significant savings.

Should You Pay Off the Mortgage or Invest?
Jennifer from Colorado had a 5.4% mortgage on a $1.1M home. Rather than rush to pay it off, her team suggested continuing to invest to maintain liquidity and take advantage of market growth. If rates drop, she can always refinance. Making small extra payments may offer a mental comfort without sacrificing flexibility.

Establishing Residency in a Tax-Friendly State
Skipper plans to move out of hot Texas and settle in tax-free Florida. The steps? Live there the majority of the year, get a Florida driver’s license, register to vote, and move financial accounts. These steps help secure residency status and avoid state income taxes.

Testing Early Retirement with $5M in Assets
Harry and Helen from Minnesota wondered if their $5M could support their $170K lifestyle. With a 3–4% withdrawal rate, their plan is financially sound, but advisors still suggested they “test” retirement for a year to ensure lifestyle fit before fully exiting the workforce.

Retiring Abroad for a Lower Cost of Living
A Tennessee couple looked to retire in Asia. With $1.3M in IRAs and a 6.7% withdrawal rate, the strategy may work if the wife delays retirement to age 65. The team advised visiting locations first to ensure comfort before making a full commitment abroad.

Roth Conversion Funding: Where Should It Come From?
Harry and Helen also considered which assets to use for Roth conversions. Advisors recommended using tax-deferred funds or taxable investments, keeping conversions small enough to stay in favorable tax brackets. The goal is long-term tax diversification and avoiding large RMDs later.

Delaying Social Security: Worth the Wait?
For many retirees, the decision to delay Social Security to age 70 can result in significantly larger lifetime benefits, especially for healthy individuals or singles. Big Al and Joe emphasized that it’s often a smart play for those who expect to live well into their 80s or 90s.

Lifestyle Flexibility Matters Most
Perhaps the most overlooked advice? Stay flexible. Whether it’s the car you drive, the wine you buy, or how often you eat out, small lifestyle adjustments can be the difference between retirement success and stress. Liquidity and adaptability help weather market shifts and personal changes.

Final Thought: Retirement Is Personal—But Planning Is Essential
Every retirement scenario is different. Whether you’re flush with savings or trying to make your portfolio last, your best bet is a mix of tax-smart withdrawals, flexibility, and long-term thinking. The more you plan now—especially when it comes to taxes and Social Security—the more freedom you’ll enjoy later.

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 Smart Retirement Planning: Roth Conversions, Mortgage Decisions, and Tax-Saving Strategies appeared first on ROI TV.

Here are eight key money takeaways from their recent discussion that can help you build wealth more efficiently, avoid common traps, and make confident decisions about your financial future.

1. Stop Letting Mental Accounting Sabotage Your Finances

Ever felt better keeping money in savings even though you’re carrying credit card debt? That’s mental accounting—and it can cost you.

Ric Edelman gave a great example:

• Keeping $10,000 in the bank at 1% interest
• While paying 18% on a $10,000 credit card balance
• Net loss: 17%, just from choosing the “wrong” bucket

He also told the story of a Las Vegas gambler who justified an $8.4 million loss by saying, “I only lost five dollars.” This kind of thinking leads to irrational financial decisions.

Smarter move:

• Treat all money as part of one financial picture
• Pay off high-interest debt before saving in low-return accounts
• Avoid emotional thinking around money

2. Start with Clear Retirement Goals

Carol from Baltimore asked how to know if she’s on track for retirement. Ric’s answer:
Start with two questions:

• When do you want to retire?
• How much do you want to spend (in today’s dollars)?

Then work backward:

• Add up your current assets
• Calculate your monthly savings and expected returns
• Use that to see if your goals are realistic

If not? Adjust your timeline or your spending expectations—not your dreams.

3. Rethink Saving for Your Grandkids

Most people think about helping their grandchildren with college—but Ric suggested going even bigger:

• Invest $5,000 in a Roth or IRA-like vehicle (if available)
• Leave it untouched for 65 years
• That money could grow into hundreds of thousands—maybe more

Of course, the traditional route still works:

• 529 College Savings Plans allow tax-free growth for tuition, room and board, and more
• You control the account and can switch beneficiaries if needed

4. Avoid Overpriced Mortgage Life Insurance

Nikki from Florida wanted to protect her mortgage with life insurance. Ric explained that mortgage protection policies are usually a bad deal:

• The death benefit shrinks as the mortgage is paid down
• They cost more and offer less flexibility

Instead, a regular term life insurance policy is cheaper and more useful. It allows your loved ones to use the payout however they need—not just toward the house.

Tip: Always shop around and talk to a fee-only advisor before buying insurance.

5. Choose ETFs Over Mutual Funds

Why? Two words: lower fees.

Ric laid it out clearly:

• Average ETF fee: 0.3%
• Average mutual fund fee: 3.0%
• Difference: 2.7% per year—that’s money out of your pocket

ETFs also come with better tax treatment and transparency. They’re built similarly to mutual funds, but more efficient. For long-term investors, that’s a big win.

6. Make Saving a Non-Negotiable Habit

Maria Bartiromo didn’t mince words:
“The #1 mistake most people make is not saving enough.”

Her advice?

• Pay yourself first—every paycheck
• Start small if you have to, but be consistent
• Build a reserve so you’re ready for the unexpected

Savings isn’t just about wealth—it’s about peace of mind.

7. Ignore the Noise, Focus on Fundamentals

With so much financial news 24/7, it’s easy to get distracted by hype, predictions, or panic.

Maria says to ignore the noise and focus on:

• Company earnings and revenue
• Management’s stake and track record
• The value of the product or service

Meanwhile, Ric reminded us that the 1980s had too little financial info—and today we may have too much. The skill now is knowing what not to listen to.

8. You Can Compete with Wall Street—But You Have to Work at It

The internet and new platforms have empowered individual investors like never before. But Maria made it clear:
Success still takes discipline.

That means:

• Doing your homework
• Building a long-term strategy
• Avoiding get-rich-quick distractions

If you’re willing to invest the time, you can absolutely invest like a pro.

Final Thoughts: Think Long, Act Smart

You don’t need to be a financial expert to make smart money moves—but understanding your mindset, your goals, and your tools can make all the difference.

From skipping overpriced insurance to maximizing low-fee investments and saving early, the path to financial independence is paved with clarity and consistency.

Start now—and keep learning along the way.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post How to Think and Act Like a Financial Pro: Smart Habits for Wealth Building appeared first on ROI TV.

So how do you plan for a successful retirement without over- or under-shooting? Here’s a breakdown of how to find your number, manage the tradeoffs, and build a plan that lets you live comfortably—now and later.

1. Save Enough, But Not Too Much

The goal of saving for retirement is to ensure future security, but once you’ve reached a point of stability, saving more than you need can actually cost you valuable time and experiences.

Under-saving may lead to financial hardship in your 70s, 80s, or 90s. Over-saving may keep you working longer than necessary, with extra funds that don’t meaningfully improve your retirement lifestyle.

The sweet spot is somewhere in between—enough to fund the retirement you want, not so much that you delay living your life today.

2. Use This Simple Formula to Find Your Retirement Target

Let’s say you want to spend $6,000 a month in retirement and expect $2,000 per month from Social Security. That leaves a $4,000 monthly gap, or $48,000 annually, that needs to come from your savings.

Adjusting for 10 years of inflation (at 3%), that becomes about $64,500 per year.

Using the 4% withdrawal rule, you’d need a retirement portfolio of: $64,500 ÷ 0.04 = $1.612 million

That’s your target to generate sustainable income over a 30-year retirement.

3. Growth Assumptions and the Savings Gap

Now let’s say you already have $750,000 saved and you’re expecting a 6% annual growth rate. Over 10 years, your portfolio might grow to $1.3 million—a solid amount, but still $270,000 short of your goal.

Depending on your time frame and assumptions, this gap may be manageable. For example:

• Starting with $500,000? You might need to save $4,500/month.
• Starting with $1.2 million? You might not need to save anything more.

4. Don’t Forget Taxes

The type of accounts you withdraw from in retirement matters—a lot.

Let’s look at Tina, who needs $84,000/year after taxes. If her money is in a traditional IRA, she might need to withdraw $117,000/year to net that amount—thanks to income taxes.

That’s a 7.3% withdrawal rate, which would deplete her portfolio by age 82.

But if the funds were in a Roth IRA, those withdrawals would be tax-free. Tina’s portfolio could last until age 90, just by avoiding taxes. This is why tax efficiency is a critical part of retirement planning.

5. Plan for Uneven Spending in Retirement

Retirement isn’t a straight line. Most people spend more early on—traveling, renovating homes, or helping with grandchildren—then slow down later.

Tina, for instance, spends $10,000/month in her first five years of retirement, including $3,000 on travel. After that, her spending drops to $7,000/month. This change alone improves her financial outlook dramatically.

Being realistic about your spending phases can make your retirement plan more accurate and sustainable.

6. The Retirement Spending Smile

This concept, supported by retirement research, shows that retirees often decrease spending over time. Instead of increasing expenses with inflation every year, you might reduce spending naturally during the “slow-go” and “no-go” years.

Adjusting Tina’s spending growth from 3% to just 2% annually improved her success probability from 63% to 84%.

Lesson? You don’t always need to plan for increasing costs. Sometimes, less is more.

7. Life Expectancy Matters More Than You Think

Life expectancy assumptions dramatically affect how much you need to save.

If Tina plans for a 100-year life, her success rate drops. If she only expects to live to 80, her odds jump to 99%. That’s a wide range, and while no one can predict the future, it’s important to plan for longevity—especially with improved healthcare and longer average lifespans.

8. Work Longer—or Adjust Spending

If Tina continues working until age 68 or 69 and continues saving, her chances of success rise significantly. But interestingly, adjusting her spending in the early years of retirement can offer a similar boost—without the extra years of work.

This is where a detailed, personalized retirement plan makes all the difference. The right choices—like reducing early travel or adjusting inflation assumptions—can help you retire sooner without giving up your lifestyle.

The Bottom Line

Retirement planning isn’t just about hitting a number. It’s about building a plan that supports both your future security and your present happiness.

Start with a realistic estimate of how much you’ll need. Factor in inflation, taxes, and life expectancy. And most importantly—design your retirement around your life, not just your finances.

A smart retirement plan allows you to enjoy your time, stay healthy, and leave worry behind—exactly what this next chapter of life should be about.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post How to Plan for Retirement Without Sacrificing the Life You Want Today appeared first on ROI TV.

In this Money Makeover session, financial experts we broke down how to build a stronger retirement plan that balances smart saving, smart spending, and smart investing.

Here’s what you need to know to get your finances makeover-ready.

1. Retirement Planning Starts with Setting Clear Goals

Many people enter retirement without a clear plan—and it shows.

• Between 2016 and 2021, the average retiree’s monthly expenses rose by $1,000.
• 49% of retirees spend more than they anticipated.
• Retirement often feels like “Saturday every day,” leading to more discretionary spending.

The first step: get clear on your goals.
When do you want to retire?
How much do you want to spend?
Do you plan to travel, buy a second home, or fund grandkids’ education?

Answering these questions is the foundation of a sustainable retirement plan.

2. Budgeting: Needs First, Wants Later

Americans are currently spending $7,400 more per year than they earn—a dangerous trend.

A simple rule can help you stay on track:

• 50% of income for needs (housing, healthcare, food)
• 20% for savings
• 30% for wants (travel, hobbies, entertainment)

Following this structure before and during retirement helps prevent lifestyle inflation and debt accumulation.

3. Retirement Savings: Employer Matches and Beyond

Good news: 52% of employees are now saving above their employer’s match.

Vanguard’s study shows that raising your contribution rate even a little each year makes a huge difference.

• Saving 2% of your salary could grow to $119,000.
• Saving 6% could grow to $356,000—nearly triple.

Aim for 15%–20% of your annual income if possible. And always grab the full employer match—it’s free money.

4. Tax Planning: Take Advantage of Current Low Rates

Tax brackets are expected to rise in 2026:

• 22% bracket → 25%
• 24% bracket → 28%
• 32% bracket → 33%

Use today’s lower brackets to your advantage:

• Convert traditional IRA funds to Roth IRAs
• Diversify your retirement income streams
• Invest aggressively in Roth IRAs for tax-free growth

Roth conversions might cause a short-term tax hit—but they can save you tens (or hundreds) of thousands over a lifetime.

5. Consolidate Accounts to Simplify Life

Many retirees have a hodgepodge of accounts—old 401(k)s, IRAs, brokerage accounts.

Consolidating can:

• Reduce management headaches
• Lower fees
• Simplify required minimum distributions (RMDs)
• Make tax filing easier

Consider using low-cost custodians and ETFs to streamline your investments even further.

6. Avoid Early IRA Withdrawals

Need cash? Think twice before tapping your IRA early.

Pulling out $100,000 before age 59½ could cost you $38,000 in taxes and penalties. Worse, that lost money could have grown into hundreds of thousands if left invested.

Build an emergency fund and short-term savings outside of retirement accounts to avoid costly withdrawals.

7. Stress Test Your Retirement Plan

Case studies like John and Sally (age 57) show how easily a plan can fall apart without proper testing.

Their original strategy depleted funds by age 82.
But by working a few more years, saving more aggressively, or reducing discretionary spending, they could extend their nest egg through their entire lifetimes.

Stress testing helps you uncover weak points—and fix them before it’s too late.

8. Use Financial Tools and Get Educated

• Budget templates
• Retirement calculators
• Portfolio risk assessments
• Tax planning strategies

Financial education and action go hand in hand. The more you understand your money, the better decisions you’ll make for your future.

Final Thoughts: Your Retirement, Your Rules

A great retirement isn’t just about how much money you have—it’s about having a plan that aligns with your goals, your values, and your vision for life after work.

With the right mix of saving, spending, investing, and tax planning, you can enjoy the retirement you’ve earned without unnecessary stress.

Start your financial makeover today—you deserve it.

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 The Ultimate Money Makeover: Retirement Planning Strategies to Secure Your Future appeared first on ROI TV.

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.

As someone who lives and breathes personal finance, I think it’s time we take a deeper look at what’s driving this increase and how to make sense of it in your own retirement planning.

Retirement Savings Goals Are Rising Fast
The $1.46 million goal is a response to several trends: people are living longer, healthcare costs are rising, inflation has eaten into purchasing power, and a safe withdrawal rate today is more conservative than it was in the past. All of that makes it harder for retirees to stretch their money across a 20- to 30-year retirement.

What Should You Save Each Month?
Let’s break down what it takes to hit $1.46 million by age 65, depending on when you start and your annual rate of return:

• Start at age 20: $572/month at 6%, $315/month at 8%, $170/month at 10%
• Start at age 30: $1,100/month at 6%, $450/month at 10%
• Start at age 40: $2,200/month at 6%, $1,200/month at 10%
  Clearly, the earlier you start, the better. Compound interest does the heavy lifting when you give it time to work.

What the Market Tells Us
Historically, the S&P 500 has delivered a 10% annualized return, but actual returns vary by decade. If you started investing:

• In 1979, you’d need $195/month to hit $1.46 million—about $737/month today after adjusting for inflation.
• In 1989, it’d take $532/month, or about $1,500/month in today’s dollars.
• In 1999, it jumps to $1,257/month, or around $2,600/month today.
  Planning for the full range of outcomes is crucial because market returns aren’t guaranteed, especially over shorter time frames.

What Does Retirement Actually Cost?
The good news is that most people don’t spend $1.46 million in retirement. The median household spending for retirees is about $64,000 a year. If you had a $1.46 million portfolio and used a 4% withdrawal rate, you’d generate around $58,400 per year—just short of the median. That’s where Social Security fills the gap.

For a couple getting $3,000/month in Social Security, you only need to cover about $2,400/month with your own savings. That requires a portfolio of roughly $720,000—not $1.46 million.

When You Claim Social Security Matters
Let’s look at how the age you claim Social Security affects the savings you’ll need:

• Claim at 62: You’ll receive about $1,200/month per person. That leaves a $3,000/month gap, requiring a $900,000 portfolio.
• Claim at 70: Benefits increase to $2,000/month each, reducing the gap to $1,400/month. You’d only need $420,000 saved to bridge that gap.
  So yes, delaying Social Security can significantly reduce the savings burden.

How to Plan Realistically
The most important step? Start with your actual retirement expenses—not a random target from a national survey. Then build your plan around that number, factoring in Social Security and potential healthcare costs. Most retirees don’t have a million dollars saved and still manage to live comfortably. The key is to plan smart, save consistently, and adjust as needed.

Final Thoughts
Forget the hype. You don’t need a round number or a million-dollar portfolio to retire well. What you need is a plan that fits your life, your values, and your goals. Start early if you can. Be consistent. Use your resources wisely. And always remember—financial peace of mind is the real goal, not just the biggest number in your bank account.

Let me know what your retirement number is in the comments. I’d love to hear how you’re planning your future.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post Is $1.46 Million Enough to Retire? What You Really Need Based on Your Age, Lifestyle, and Social Security appeared first on ROI TV.

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.

Final Thoughts
If your retirement plan is still a work in progress—or sitting in a drawer gathering dust—it’s time for a financial makeover. Start by setting clear goals. Document your plan. Revisit it regularly. From optimizing tax strategy to stress-testing your portfolio, small adjustments today can make a big difference tomorrow.

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 Retirement Planning Strategies for 2025 appeared first on ROI TV.

savology.com

Simplifying Financial Planning

To make financial planning more accessible, consider condensing it into a one-page document. This approach includes key components such as:

• Vision and Goals: Clearly define your retirement objectives.
• Cash Flow Management: Track your income and expenses to understand your financial inflows and outflows.
• Asset Allocation: Determine how to distribute your investments across various asset classes.
• Action Items: List specific steps to achieve your financial goals.

This streamlined plan helps distinguish between needs and wants, ensuring that your spending aligns with your priorities.

kitces.com

Cash Flow Management

Understanding your cash flow is vital. Break down your expenses into categories such as living costs, savings, debt repayment, and charitable giving. For example, you might allocate 58% for living expenses, 15% for savings, 15% for debt repayment, and 12% for charitable contributions. This breakdown provides a clear picture of where your money goes, enabling informed financial decisions.

Retirement Savings Goals

Starting early and maintaining consistent savings are key to reaching retirement goals. Depending on your age and expected rate of return, calculate how much you need to save monthly to accumulate a desired retirement fund. For instance, to reach $1 million by age 65, the required monthly savings will vary based on when you start and your investment returns.

Social Security and Retirement Income

Assess your expected retirement income from sources like Social Security, pensions, and personal savings. Understanding these figures helps in planning your retirement spending. For example, you might anticipate $32,000 from Social Security, $10,000 from a pension, and plan to withdraw $40,000 annually from a $1 million retirement account, assuming a 4% withdrawal rate.

Tax Planning and Investment Strategy

Be aware of how taxes impact your investment returns. Different accounts—tax-free (Roth IRAs), taxable (brokerage accounts), and tax-deferred (401(k)s, IRAs)—have varying tax implications. Diversifying your income sources can help manage taxes effectively in retirement.

Asset Allocation and Diversification

Allocate your assets based on your time horizon and individual goals. A globally diversified portfolio might include various types of stocks (domestic, international, growth, value, small, medium, large companies) and bonds. As you approach retirement, adjusting your asset allocation to reduce risk becomes increasingly important.

Emergency Funds

Maintain an emergency fund covering 3 to 12 months of expenses, depending on your income stability. Balancing cash reserves with invested assets ensures financial security during unforeseen events.

DIY Retirement Guide

For those preferring a do-it-yourself approach, resources like the DIY Retirement Guide can assist in creating a one-page financial plan, empowering you to take control of your financial future.

By consolidating your financial strategy into a single page, you can focus on what truly matters, making your retirement planning more effective and less daunting.

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.

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