Questions about money? Get expert answers. Email us at: askpete@petetheplanner.com
This week on the Pete the Planner Show, Pete and Damian have an amazing surprise for our show listeners! You will now be getting the full, raw, unedited podcast to hear even more Dunn-isms each week!
In the first six months of 2021, we’re going to make over five families’ financial lives, LIVE on the air! WE’RE GIVING AWAY FIVE FREE HEY MONEY, MEMBERSHIPS and walk with them across six months telling their stories about their struggles in personal finances.
No time to listen? BUMMER. Here’s some of what happened:
Show Notes:
Mailbag Question 1:
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- My wife and I are both 52 and have a done a mediocre job at saving for retirement. Based on every online calculator I’ve used, we’re falling short of our retirement goals and the goals are modest. Between our mortgage, car payments and kids’ college educations, we don’t have much left each month. What do you tell people who are scraping by now and headed toward a not-so-great retirement?”
- Damian: You may have to shift your idea of what retirement looks like. The things you may have envisioned are likely going to have to change a bit.
- Pete: When people look at retirement shortfalls, they come to the conclusion “I don’t have a lot of money.” Change that lens; instead of focusing on not having a lot, focus on eliminating the obligations which make retirement seem impossible.
- My wife and I are both 52 and have a done a mediocre job at saving for retirement. Based on every online calculator I’ve used, we’re falling short of our retirement goals and the goals are modest. Between our mortgage, car payments and kids’ college educations, we don’t have much left each month. What do you tell people who are scraping by now and headed toward a not-so-great retirement?”
Pete’s StoryTime:
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- “When the pandemic and recession hit, we volunteered our services to the city of Indianapolis to be able to help people who had been suffering. This guy and his wife were about 50 years old. She was staying at home, not working. He was in the hospitality industry. Last year was his best year ever, bringing in $130,000. This year, he will have made $65,000. They’re only going in the hole to the tune of $750 per month. They’re renters and want to buy a home, while staying in their good school district. They’ve saved a bit of a downpayment, and want to buy a $225,000 home. …. They had saved $100K as a downpayment and have $50K in an emergency fund. They don’t feel great about what they have saved for retirement …but they have about $250K saved for retirement. They want to stop renting, but they can’t afford a new house in their neighborhood, even with that downpayment. It’s a remarkable problem, their perspective. Is this not one of the most unusual crises you’ve ever heard of?“
- Damian: They must have been pretty disciplined prior to this year. They’ve got decisions to make, with younger kids still in school. “How much are they going to want to contribute to their kids’ education?” Some of that savings could need to be redistributed to other areas on their life.
- Pete: It’s fascinating; they’ve got four goals, but only three of them are possible. I hate to say this, but ‘college’ is at the complete end of the list here.
- “When the pandemic and recession hit, we volunteered our services to the city of Indianapolis to be able to help people who had been suffering. This guy and his wife were about 50 years old. She was staying at home, not working. He was in the hospitality industry. Last year was his best year ever, bringing in $130,000. This year, he will have made $65,000. They’re only going in the hole to the tune of $750 per month. They’re renters and want to buy a home, while staying in their good school district. They’ve saved a bit of a downpayment, and want to buy a $225,000 home. …. They had saved $100K as a downpayment and have $50K in an emergency fund. They don’t feel great about what they have saved for retirement …but they have about $250K saved for retirement. They want to stop renting, but they can’t afford a new house in their neighborhood, even with that downpayment. It’s a remarkable problem, their perspective. Is this not one of the most unusual crises you’ve ever heard of?“
NO MORE SEGMENTS! There’s so much more in the full show! — click PLAY below for the full show.
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Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.