Let’s break it down.

1. Retirement Age

The earlier you want to retire, the more years you’ll need to fund without earned income—and that means higher savings. Retiring at 60 instead of 67 could mean needing hundreds of thousands more. On the other hand, delaying retirement gives your investments more time to grow and reduces your required annual savings rate.

2. Annual Spending

Forget replacing your income—what you really need is to replace your spending. If you’re spending everything you earn, you’ll need to replicate that level in retirement. But if you’re a super saver, your needs may be far lower. That’s why a custom retirement budget is more helpful than guessing based on averages.

3. Withdrawal Rate

This is the rate at which you safely draw from your savings in retirement. A 4% rate means you’ll need 25 times your annual spending. So if you need $60,000 per year, you’ll want $1.5 million. Prefer a safer 3% rate? Now you’re aiming for $2 million. Choose a more aggressive 5%, and $1.2 million might do the trick—but with more risk.

4. Other Income Sources

Pensions, Social Security, annuities, and rental income reduce how much you need to save. For example, $2,000/month in Social Security can offset nearly $500,000 in savings. Make sure to factor in all guaranteed income when calculating your savings target.

5. Longevity

How long you live affects how long your money must last. Planning for 25–30 years in retirement means keeping withdrawal rates conservative—perhaps 3.3% instead of 4%. That increases the amount you need saved but helps guard against running out of money.

6. Inflation

A 3% annual inflation rate means your $60,000 spending today could balloon to $145,000 in 30 years. Investing for growth is essential to keep pace. The good news? A safe withdrawal strategy like the 4% rule typically builds in inflation adjustments to maintain your purchasing power.

7. Healthcare Costs

Healthcare costs tend to rise as you age. Retiring before Medicare kicks in at 65 means covering 100% of your insurance. Even after 65, Medicare doesn’t cover everything—think dental, vision, hearing, and long-term care. A dedicated healthcare fund or HSA can help fill the gap.

8. Dependents

Supporting aging parents, adult children, or grandchildren? These added financial responsibilities stretch your retirement dollars. Whether it’s tuition support, caregiving, or living assistance, planning for others adds complexity—and cost—to your retirement equation.

9. Legacy Goals

Do you want to leave something behind for loved ones or donate to a cause? That goal increases your savings needs too. You’re not just saving to support yourself—you’re building a financial legacy.

Bottom Line:
There’s no shortcut to figuring out how much to save. But with these nine factors in mind, you can create a plan that reflects your real needs—not generic advice. Start early, stay intentional, and don’t compare your journey to anyone else’s. Your retirement is your destination.

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

The post 9 Factors That Determine Exactly How Much You Need to Save to Retire appeared first on ROI TV.

Many people believe IRA stands for Individual Retirement Account, but it’s actually an Individual Retirement Arrangement, as outlined in the IRS tax code. An IRA isn’t an investment itself—it’s a tax-advantaged container you use to hold investments like mutual funds, CDs, stocks, and bonds. Depending on the type of IRA, your contributions and withdrawals are taxed differently:

• Deductible IRA: Tax-deductible contributions, taxable withdrawals.
• Roth IRA: No tax deduction upfront, but tax-free withdrawals later.
• Non-Deductible IRA: No tax deduction upfront; earnings are taxable at withdrawal. Contribution limits vary based on income, age, and marital status and are adjusted periodically by Congress.

Importance of Rebalancing Investment Portfolios

Rebalancing is a powerful strategy that ensures you’re buying low and selling high without trying to predict market performance. By periodically adjusting your asset mix, you can increase long-term returns and reduce risk. We rebalance our accounts based on past performance, a method that has proven successful and reliable.

Managing 401(k) Funds After Changing Jobs

When you leave a job, I recommend rolling over your 401(k) into an IRA. This avoids taxes and penalties, provides broader investment choices, and frees you from your former employer’s administrative constraints. IRAs also simplify future withdrawals and reduce management fees.

Gift Tax Exemption Rules

In 2025, you can give up to $19,000 per year to any number of individuals without triggering gift taxes. Couples can double that amount to $38,000 per recipient. Larger gifts up to $13.99 million per individual or $27.98 million per couple can be given tax-free under the unified credit provision, but this reduces the estate-tax-free amount for heirs. Ric also mentioned using trusts like Crummey Trusts to structure these gifts for future use.

Investing in Commodities

Commodities like gold, oil, and agricultural products can add diversification to your portfolio, but Ric recommends limiting them to no more than 5% of your holdings. These are high-risk, high-volatility assets best accessed through ETFs to reduce transaction costs and tax complexity.

Social Security and Retirement Planning

While Social Security isn’t going away, Ric warned it may become less generous over time. He urged attendees not to rely on it as a primary income source and to focus instead on personal savings and investment strategies. For 2025, the maximum monthly Social Security benefits are:

• Retiring at age 62: $2,831
• Full retirement age (67): $4,018
• Retiring at age 70: $5,108

College Financial Aid Strategies

Education reporter Kim Clark joined the session to discuss smart college planning. She emphasized affordability, advising families to apply to multiple schools to encourage competitive financial aid offers. She noted that some universities, like Carnegie Mellon, match aid from similar institutions. Kim also favored 529 plans over tuition prepayment plans due to the latter’s financial instability.

Leveraging Savings Programs Like Upromise

Upromise is a practical way to earn college savings by registering grocery and credit cards, earning small rebates on everyday purchases. Families can involve grandparents and friends to boost contributions. While this won’t replace a college fund, it can easily cover incidental costs like textbooks.

Retiree Regrets and Planning for Satisfaction

More than half of affluent retirees regret not planning earlier for a meaningful retirement. He stressed the importance of envisioning your ideal post-career life and saving with that vision in mind—not just to survive, but to thrive.

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 Building Financial Success with IRAs, Rebalancing and College Savings appeared first on ROI TV.

To avoid this, I always recommend adjusting your W-4 form. Use the IRS withholding calculator or, better yet, consult with a tax advisor to dial in the right number of exemptions. Imagine what you could do with that extra cash every month—whether it’s building up an emergency fund, investing in the market, or even starting a small side business. It’s your money; make it work for you.

Rethinking Social Security for Retirement

If you’re planning to rely on Social Security as your primary income source during retirement, you might want to reconsider. Right now, Social Security makes up over 50% of annual income for most retirees, and that’s a risky position to be in. I’m predicting two major changes coming: an increase in the qualifying age and a reduction in benefits.

For married couples, the maximum Social Security benefit is around $22,000–$24,000 a year—or just $2,000 a month. Let’s be honest, that’s not enough to live comfortably for most people, especially with rising costs. That’s why I always advocate for independent savings and investing. Don’t leave your financial future up to government decisions.

Making the Most of Mandatory Distributions

If you’re in retirement and forced to take mandatory distributions from your 401(k) or other retirement accounts, don’t feel like you have to spend it. Here’s the truth: the IRS requires you to pay taxes on the distributions, but they don’t require you to spend the money.

If you don’t need it, roll it into a taxable account and keep it invested. It’s all about letting your money keep working for you. And listen, I know plenty of people who have spent their entire lives being frugal, feeling guilty about touching their savings. But I’m here to say, if you’ve planned well, it’s okay to enjoy your money—or even better, use it for family, community, or charity. Money is a tool, not a trophy.

Why I Always Recommend Taking a Mortgage

When it comes to buying a home, I’m a big believer in taking a mortgage instead of paying cash. I know that might go against what you’ve been told, but hear me out. A mortgage preserves liquidity—it keeps cash in your pocket for emergencies, investments, or new opportunities.

If an economic downturn hits or you lose your job, that liquidity can be a lifesaver. You don’t want all your money tied up in bricks and mortar. Plus, mortgages are one of the cheapest types of debt you can have, especially with fixed interest rates. If you have the choice, keep the cash and finance the house. Trust me, the flexibility it provides is worth it.

Conservative Investing Strategies

If you’re like Natalie, an 80-year-old who called in during a live discussion, and you’re worried about risk, it’s okay to stay conservative. FDIC-insured money market accounts are a solid choice if you want low risk and high liquidity. But here’s the catch: low risk also means low returns.

That’s why I always recommend diversification—a mix of stocks, bonds, real estate, gold, and maybe even some oil. The key is finding the right balance for your comfort level while still growing your wealth. And if you’re not sure where to start, talk to a local financial advisor. They can help you craft a plan that fits your goals and your tolerance for risk.

Russell Simmons’ Take on Wealth and Happiness

I had the chance to hear Russell Simmons talk about his philosophy on wealth, and it was eye-opening. According to him, real wealth isn’t just about money—it’s a state of consciousness. True happiness, he says, comes from giving, not getting.

He also talked about the importance of meditation and mindfulness to stay focused and creative. It’s that mindset that allows you to give freely and be generous. When you think abundantly, you attract abundance. His message was clear: financial success is important, but mental peace is priceless.

Comparing Mortgage Loan Costs the Right Way

If you’re shopping for a mortgage, don’t get distracted by waived closing costs. Many lenders offer that deal, but it usually means you’re signing up for a higher interest rate, which costs more in the long run.

When I’m comparing mortgage options, I always look at the total cost over the life of the loan. Sometimes, it’s smarter to pay the closing costs upfront if it means a lower interest rate for 30 years. Always run the numbers. A little extra effort can save you tens of thousands of dollars.

I’ve learned that financial freedom isn’t just about saving money—it’s about using your money intelligently. It’s about understanding how taxes work, why you should leverage debt instead of fearing it, and how to invest wisely. If you take control of your finances, you’ll find that freedom isn’t just a dream; it’s a choice.

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 Smart Financial Strategies: From Tax Refunds to Real Wealth appeared first on ROI TV.