4 Uncomfortable Retirement Truths You Need To Hear

today I'm going to share with you four important but unfortunately uncomfortable rules about retirement and I'm going to save the most important one to last so be sure to watch until then the first one is the the venerable the famous 4% rule uh which gives you a guideline as to whether or not you have enough money to retire that rule is based on a fairly volatile portfolio uh when Benson did his study uh it was based on portfolios anywhere from 50% exposure to stocks to % exposure to stocks and certainly as you get closer to a 70% stock portfolio that's not a low risk portfolio so there's a fair amount of volatility so buckle up and be ready for that the second one's related to that which is unfortunately there is no bulletproof portfolio right there's portfolios that have worked in the past and should work in the future but it doesn't mean that there's not going to be bumps in the road and there's not going to be surprises right the SEC has a guideline um where we've all heard this in ads past performance is is not indicative of future performance and there's a reason the SEC wants people to put that in their ads because it's very true right what moves markets are things that we can't think about ahead of time there's surprises at at some level some of them were huge surprises like the pandemic certainly was for me a a huge surprise uh like the financial crisis in 20072 2008 less of a surprise for for me uh but still a surprise um Black Friday uh for those of us older to remember 1987 when the market moved 20% in one day you know these are surprises that we don't expect to happen and and that's why they move the market uh so just because something's worked in the past doesn't mean it's going to work in the in the future and the the third uncomfortable truth is there are some risks that are worth taking that are going to make you uncomfortable uh and I think the best example of that is if you have a financial plan put together professionally it's likely uh or even if you do it on the internet um it's likely going to give you a likelihood of success and one of the things you'll notice is none of those plans will'll ever say it's 100% likely uh to succeed right I I think you want to be in the 90% range uh for some people it might be okay to even be in a little bit less than 90% um but I think the price that you pay certainly when you're at 95% likely of succeeding the uncomfortable truth is what you have to give up in order to go from 95% likelihood of of uh succeeding to 99% is probably not a price that you want to pay it's just too great of a price what it means is you're going to have to keep working you're going to have to save more money uh you're going to have to have a more volatile portfolio than you want um Endor you're going to spend less money in retirement and and frankly I just don't think any of those are are worth it right these plans are not written in stone right you don't know when you're going to die you don't know what tax rates are going to be um even for when you file your taxes next year for this calendar year so how the heck are we supposed to know what it's going to be in in 20 years and 30 years Etc so I think that's a risk worth taking but it is going to make you uncomfortable and and finally before I get to the the last risk which again I think is the most important one I have a quick favor to ask uh if you found this video helpful if you've made it this far please hit the like button it really does help me uh I'm a fairly new YouTube channel and I'm trying to get the word out to other people like yourself that this kind of content can help so take a second hit the like button uh and even better uh leave a quick comment let me know what you think of of this video how I could make it better and if there's any other uncomfortable retirement surprises that that are on your radar screen that maybe I didn't cover in this video so now on to the what I consider to be the most important uh uncomfortable truth and that is if you're 60 years old uh and most of us watching these videos are either 60 or pretty close to 60 and you know retirement's on the horizon that's why we're watching videos like this but if you're 60 years old the uncomfortable truth is you likely have less than a thousand weeks remaining of healthy active time time let that sink in for a second a thousand weeks that's not a lot of time right so we want to make sure that we're we're making the most of it uh and I'm sorry to put this uncomfortable truth on your plate but better you think about it now and you're intentional and how you spend your time and you just go after it right when we were younger we could put things off for longer and longer but as we get older the cost of doing that is much higher CU we just don't have as much time left so those are the four uncomfortable ret truce I hope you found it helpful till next time I'm a reminding you to take full advantage of the Youth of your senior years remember you're only young once use this time wisely

Channel: Azul

Views: 342,730

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Id: Q-MFzAtmg_M

Length: 5min 14sec (314 seconds)

Published: Sun Mar 05 2023