1. Retirement Planning: Make It or Break It
A successful retirement starts with a plan that accounts for longevity, spending habits, and unexpected costs. Joe and Big Al emphasized that even the best plans can unravel due to overspending on travel, luxury goods, or living longer than expected. They urged retirees to evaluate all income sources—Social Security, pensions, annuities, and investment accounts—and to be mindful of lifestyle costs such as housing, dining, insurance, and entertainment. Downsizing, cutting back on luxury items, or relocating can free up cash and ensure long-term sustainability. Think twice before buying that boat, RV, or helping adult children if it could jeopardize your financial independence.

2. Social Security Optimization
Social Security can contribute over $1.3 million to a couple’s retirement income, making it critical to time your claim strategically. Claiming benefits early at age 62 leads to permanent reductions, while waiting until age 70 can increase benefits by 8% per year. Joe and Big Al explained break-even points—age 79 for waiting until 67 and age 82 for waiting until 70—helping retirees weigh their life expectancy and financial needs. Married couples must also coordinate benefits for maximum lifetime income, taking into account survivor benefits and spousal strategies.

3. Health Care Costs in Retirement
Healthcare is one of the biggest budget items in retirement, with Fidelity estimating costs at $330,000 per couple—around $10,000 to $12,000 per person annually. Staying healthy through exercise, diet, and social engagement can reduce costs and improve quality of life. Medicare coverage was broken down into Parts A, B, C, and D, with reminders that missing enrollment windows can lead to lifetime penalties. Since Medicare premiums are deducted from Social Security, planning for net income is essential.

4. Retirement Risk Zone and Sequence of Return Risk
The retirement risk zone—the 10 years before and after retirement—is when portfolio shifts become critical. Sequence of return risk occurs when markets drop early in retirement, potentially accelerating the depletion of assets. A single 15% drop at age 67 can impact retirement sustainability. Joe and Big Al recommended reducing portfolio volatility, holding cash reserves, and using flexible withdrawal strategies to ride out market downturns without locking in losses.

5. Emergency Savings and Inflation
A startling 27% of Americans have no emergency savings. This can lead to financial instability in retirement when unplanned expenses arise. Inflation further complicates the picture—just 3% annual inflation means today’s $100 will cost $134 in 10 years. Building emergency savings and accounting for inflation in your retirement budget is key to maintaining purchasing power.

6. Debt Management
Carrying high-interest credit card debt into retirement is a recipe for stress. With average balances near $9,000 and interest rates at 25%, retirees can pay nearly $6,000 in interest alone over 53 months. Joe and Big Al encouraged tackling debt early, particularly credit cards, while budgeting for insurance and unexpected costs like natural disasters to avoid financial surprises.

7. Marriage and Its Impact on Retirement
Marriage can either enhance or complicate retirement. Strong communication, shared financial goals, and respecting each other’s individuality are vital. Divorce or the death of a spouse can lead to reduced income, higher expenses, and emotional strain. Planning ahead with survivor benefits, estate planning, and flexible financial strategies can help mitigate these risks.

8. Withdrawal Rates and Asset Location
The 4% rule is a common guideline for sustainable retirement withdrawals, but lower-risk portfolios might require adjusting to 3.7% or less. Asset location is equally important for tax efficiency. Joe and Big Al recommended diversifying across tax-deferred (IRAs, 401Ks), taxable (brokerage, real estate), and tax-free (Roth IRAs) accounts to optimize income and reduce tax burdens throughout retirement.

9. Retirement Savings Formula
Big Al offered a simple formula: estimate your annual expenses, subtract fixed income (Social Security, pensions), and multiply the shortfall by 25. For example, if you need $100,000 per year and get $60,000 from fixed income, you’ll need $1 million in savings to cover the $40,000 shortfall. This framework helps target the right savings goal for a sustainable retirement.

10. Actionable Resources: Financial Blueprint
To tie everything together, Joe and Big Al urged everyone to use the free “Your Money Your Wealth” financial blueprint tool. It analyzes your retirement readiness and color-codes areas of concern: green for on track, yellow for caution, and red for urgent attention. This personalized tool makes it easy to identify next steps and take meaningful action toward a financially secure retirement.

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 10 Essential Strategies for Financial Success appeared first on ROI TV.

Don’t Let These Pitfalls Derail Your Future

Let’s start with one of the biggest culprits: lack of cash reserves. If you don’t have an emergency fund, you could be forced to rack up debt or withdraw from your retirement accounts—both of which come with a hefty cost.

Another common issue? People not taking advantage of their 401(k) match. Around 10% of eligible employees skip it entirely. That’s free money left on the table! And let’s not forget the parents supporting adult children at the expense of their own retirement. One stat that floored me: 23% of parents give their adult kids $600 a month, while only saving $490 for themselves. Over 20 years, that could mean sacrificing $300,000 in potential growth.

The Hidden Cost of Early Withdrawals

Pulling money out of your retirement account before age 59½? You might as well hand half of it to the IRS. Between federal and state taxes and a 10% early withdrawal penalty, you could walk away with just 50-60% of what you originally had.

We ran the numbers: a $100,000 withdrawal today could’ve grown to $600,000 over 30 years at a 6% return. That’s the power of compound growth—and why you want to leave those retirement funds untouched if possible.

Sure, there are exceptions for things like education or first-time home purchases, but those withdrawals are still taxed. So use caution and think long-term.

Withdrawal Strategies That Actually Work

One of the most important parts of retirement planning is determining how you’ll draw down your portfolio. We recommend sticking to sustainable withdrawal rates:

• Ages 50–60: 3%
• Ages 60–65: 3.5%
• Ages 65–70: 4%

Don’t fall into the trap of thinking you can safely withdraw 10% annually just because the market might return that in a good year. Markets fluctuate, and down years early in retirement can wreck your plan.

Tax Efficiency Can Make or Break Your Plan

Many people wait until RMDs kick in to access their traditional IRAs, but that can lead to massive tax bills later. Instead, take advantage of your lower tax brackets in early retirement. Strategic withdrawals or Roth conversions now can mean less tax pain in the future.

If you have a mix of tax-deferred, taxable, and Roth accounts, you have flexibility. Use that flexibility to create a tax-smart drawdown plan that supports your long-term goals.

Don’t Underestimate Inflation or Sequence Risk

A 3% annual inflation rate may not sound like much—until you realize it cuts your dollar’s value in half over 20 years. And we’ve seen 7-9% inflation in recent years, which puts even more pressure on your savings.

Then there’s sequence of return risk—when the market dips early in your retirement and you’re forced to sell investments to generate income. That combination can drain your portfolio faster than you think. The fix? Keep a cushion of safe money, like cash or CDs, to draw from during those rough market 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 How to Avoid Wealth Busters 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.