Your Money, Your Wealth How to Retire ASAP - and Where to Save to Get There - 505
Nov 26, 2024
Ricochet J seeks to retire ASAP, weighing the benefits of a brokerage account versus a solo 401(k). Meanwhile, Micah questions if a $40,000 pension is equivalent to a million in bonds based on the four percent rule. Tax strategies are discussed for Barney and Betty, while Amir's quest for maximum retirement income sparks further conversation. The unique dynamics of pensions versus investments are explored, revealing the complexities of retirement planning and the importance of tailored strategies.
AI Snips
Chapters
Transcript
Episode notes
Retirement Savings Strategy
- Prioritize solo 401(k) contributions for tax-free growth, especially since the funds will be accessible in your 60s.
- Consider working with a financial planner for personalized advice given the complexity of your situation.
Retirement Savings Goal
- Aim for a target of $1.5 million in savings over the next 15 years to ensure a comfortable retirement.
- Focus on saving and investing consistently in low-cost index funds, given your long-term horizon and pension.
Pension vs. Portfolio
- A $40,000 annual pension is similar to having $1 million in bonds, applying the 4% rule.
- However, a $1 million portfolio offers more flexibility than a fixed pension, although it comes with market risk.