#190 - How much you should have saved for retirement by now

Oct 4, 2017

Ask episode

Chapters

Transcript

Episode notes

Several years ago I participated in an Ironman Triathlon. I didn’t win, not even close. I finished in the 77th percentile. Turns out, the winner could have started 6 ¼ hours after me and still beat me. So was this experience a failure? It depends on how you look at it. I enjoyed the experience, I loved the cycling and felt refreshed by the countryside surroundings. So for me, this was definitely not a failure. Comparison is important to keep us on track with our goals but when we put all of our focus on our performance v.s. someone else's performance...we often become unhappy. Regardless of where you are in life or how much you have saved for retirement, comparison could be the death of joy. Listen to this week’s episode to hear my thoughts on how to stay on track without letting go of your joy.

A Fidelity study shows exactly how much you should have saved for Retirement

A recent Fidelity study lays out exactly how much you should currently have in savings for retirement based on your age. They say that by age 30 you should have 1x your annual income in savings, 3x at age 40 and 7x at age 55. For some of us on the journey to retirement that may feel like a daunting task. Many of us don’t start saving as early as we should, I know I didn’t. But are these numbers really where we need to be? Can we make it work with less? Join me this week on the retirement Answer Man show to hear my thoughts.

Are my assets safe in the hands of my advisor?

Recently a financial advisor absconded with over 1 million dollars of their client's money. The advisor had no history of fraud and seemed to be a good person. If anyone can snap and steal from us, how can we trust our advisor? In this episode, I’ll dive into a few things to look for in your advisor to help you decide whether or not they are trustworthy. I’ll also outline some red flags that signal something fraudulent might be happening with your money. If you want to make sure your advisor can be trusted with your money, listen to this episode of Retirement Answer Man.

How should I allocate my 401K contributions to provide future security?

A listener called in with a question. He is making contributions to his 401K and wants to know how he should allocate his assets. Of course, I can’t give him specific advice but I can give guidelines of how you should think of your contributions based on your retirement goals. Make sure you catch this episode to hear my advice.

Life is full of changes. Go along for the ride and have fun.

Fall has come to Texas. It’s not as unbearably hot and pumpkins are selling in all the stores. I love the change of seasons, the change of pace and the excitement. Life, like the earth, often has many seasonal changes as we get older and they can be exciting as or sometimes challenging. Whether or not you are ready for the next season of life remember that there is nothing you can do to stop it so you might as well go along for the ride and focus on being happy.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

[0.28] Several years ago I participated in an Ironman Triathlon
[3:29] I finished behind many. But was it a failure?

HOT TOPIC SEGMENT

[6:38] Fidelity study shows what you should have saved for retirement.
[7:50] Regardless of where you are, you compare yourself to others.
[9:01] By age 50 you should have 6x your annual salary saved for retirement.
[11:57] Many of us start saving late.
[12:00] Many of us make bad savings and investing decisions.
[13:50] Comparison can be the death of joy.

PRACTICAL PLANNING SEGMENT

[14:33] Listener questions with Nichole.
[16:04] How safe is my money with a financial advisor?
[20:00] How can I verify an advisor’s trustworthiness?
[27:00] Be wary of private investment opportunities.
[28:01] How should I allocate my 401k contributions?
[32:08] I have 80% of my 401K in stock. How can I balance my investments?

THE HAPPY LAB SEGMENT

[37:57] Fall has come to Texas
[38:39] The seasons are changing. Whether you like it or not, try to enjoy the ride.

TODAY’S SMART SPRINT SEGMENT

[39:22] Look at all of your investment assets and see, based on Fidelity’s study, where you are based on your age.

RESOURCES MENTIONED IN THIS EPISODE

Ask a question

Work with Roger

3-Video Series: 5 Minute Retirement Makeover

Roger’s retirement learning center

The Retirement Answer Man Facebook page