Ep. 340: The Ultimate Retirement Question: $ or %?

This week’s show is, in a word: focused.  Pete and Damian really drill into the most general area there is: Retirement. The mailbag was opened and brought out a question from a listener that Pete could get excited over: “Here’s my financial story; now how are things looking for me?” Our hosts are financial experts with a great deal of experience in the matter, but to make it sink in, they bring in an even more special guest: GSG, herself, Gold-Star Gayle!
Can’t listen? Check the Show Notes!

Show Notes:

  • The writer and his wife are in their early-30s, so not retiring any time soon.They’ve got 3 children, and live in the Bay Area. His wife stays home with their young children. They’ve got about $200k saved for retirement, “in the Bay Area no less,” in a pair of IRAs, a separate emergency fund, and a separate brokerage account for the kids’ college, weddings, etc. That’s impressive!
  • Sounds great, right? Here’s the writer’s question: “We want to have about $120k per year, in today’s dollars, in retirement. Are we on a good track to achieve this goal?”
  • Let’s go deeper. Pete, Damian, and GSG, with their financial powers combined, read into this scenario and find the real financial question on the table: “How much from each paycheck should I put towards retirement?” Most people would try to immediately try to generate a dollar amount in their mind. The right answer is a percentage: 12-14%. This is the Ultimate Retirement Question.
  • The average person thinks that if they’re doing the company match, they’re doing well. The average match is 3.7 – 4.7%. Because it’s a match, that means that the average person is putting in about 7 – 9%. That is much smaller than 12 – 14%.

 

Click PLAY below. Learn more about putting yourself into a better position for your own retirement.

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