Ep. 105: What’s Your Number? Do I Have Enough to Retire?
The X's and O's
In this episode of the Retirement Plan Playbook, hosts Brent Pasqua and Matthew Theal of Evermont Wealth delve into comprehensive retirement planning and investment strategies.
The discussion addresses crucial questions about how much money is needed to retire comfortably.
They analyze market trends, such as the performance of major stock indices, the impact of emerging technologies like AI, and the fluctuations of stocks like Nvidia, Apple, and Tesla.
The team also explores essential factors affecting retirement savings, including retirement age, lifestyle choices, health considerations, and income sources. They offer tools and strategies like the 4% withdrawal rule and online calculators to help predict and achieve retirement goals.
00:37 Hosts Introduction and Episode Overview
01:23 Political Commentary and Debate Discussion
05:05 Market Update
09:39 Tesla's Comeback and Future Prospects
12:38 Retirement Planning Corner: What's Your Number?
21:13 Planning for Lavish Retirement Trips
22:39 Healthcare Costs in Retirement
24:33 Income Sources in Retirement
26:25 Calculating Your Retirement Number
28:33 Using Online Calculators and Advisors
30:32 Personal Retirement Goals
34:20 Recommendations and Plugs
38:49 Conclusion and Final Thoughts
Connect With Evermont Wealth:
Transcript
Intro: Welcome to the Retirement Plan Playbook hosted by Brent Pasqua, Matthew Theal, and Joshua Winterswyk of Evermont Wealth. This podcast dives deep into investment strategies, retirement planning, and current events, equipping you with the insights needed to craft a robust retirement playbook adaptable to any political or economic climate.
Intro: Join Brent, Matthew, and Joshua as they guide you through the complexities of retirement planning. Offering expert advice. to tackle challenges and the later stages of your journey. It's time to build your optimal retirement playbook. Now let's dive into today's episode.
Brent: Welcome to retirement plan playbook. I'm your host, Brent Pasqua, founder of Evermont wealth, financial advisor, helping you navigate through the complexities of retirement planning. Joining here with Matthew Theal certified financial planner. How you doing today? Hello. Hello. I am doing great. Happy 4th of July to all our listeners So today we're gonna dive into What's your number and do I have enough to retire?
Brent: Like how much do you need to retire? How much are you gonna need to save by the time you go to retire? And if you are in retirement, do you have enough to last you the rest of your retirement? And I think those are very, very important questions. As you start to think about one day, potentially not working or potentially living comfortably for the rest of your retirement. But before we get into some of that detail, Matthew, did you watch the debate?. I caught a
Matthew: little of the debate. It was you know, I don't think there's any way to put this other than, you know, probably one of the Saturdays for most Americans is very hard to watch that debate. We basically had two people up there who are, you know, 80, 80 years old you know, trying to lead the greatest country in the world.
Matthew: The end. You know, one of them has been known to how can I say this? Tell fibs and the other one couldn't string a sentence together. And the person who couldn't string a sentence together is the, actually the president of the United States. And it was very sad as Americans. We need to start demanding more from our leaders.
Matthew: And I just think that, you know, that debate was an awful, awful reflection of what our country
Brent: is. What about you? I didn't watch it. I did go back and listen to a couple of the clips. I have the same sentiment that you do. It is very sad to watch because we're now seeing us put presidents in office that are getting older and older and older, and we shouldn't be utilizing People of that age to leave this country.
Brent: Like I have to imagine like when you listen to Biden speak and you listen to him, just kind of stare off into space and just not cognitively be there. Like what is he doing in meetings with other world leaders? Because like he can't, you can't formally lead a country, make complex decisions and be thought out and thorough.
Brent: If you're cognitively in decline, especially at that age, like it, that is not a great position for the most powerful country in the world to be in where you don't have confidence in your world leader.
Matthew: I'll tell you what he's been doing with other world leaders. You could put, if you're on Twitter, you could search the videos when he's meeting with the president of France.
Matthew: He's like wandering off. And, you know, up until a few days ago, the New York times, MSNBC, Washington post, all those, you know, left leaning outlets were saying, Oh, that's a fake news. That's Russian propaganda. And now they're coming out and saying, Oh, we lied about that. It's all true.
Brent: And then on the other side of things to me I mean, I have a lot of clients on both sides of the political parties, but I don't have a ton of people that I meet with or talk to.
Brent: That have a ton of confidence in Trump, really like a lot of people see his flaws. They've we've already been through it four years ago. Like where's good, thoughtful, caring people who really want to put the country first, who understands how to deal with other world leaders, who wants to be on the world stage and can handle the world stage and can really speak clearly and confidently, you know, can put the.
Brent: The, the confidence of the American people on their shoulders and run this thing the way it's supposed to. I just don't see it happening with these two people. And I don't understand how we're in this position. It's wrong. It's not fair to the American people and it's all politics and power. And, and that's, you know, we're at this point where that's ridiculous.
Matthew: Yeah. Sad day. I agree. . . And you,
Brent: you know what, one thing, last thing that's sad about this. Is that any of the names that are being touted behind Biden, if Biden were to drop out of the race or even Trump.
Brent: Those aren't even good people. So like, that's what I don't understand. Like we don't even have a backup. That's a good plan. So, I mean, it's just a compiling problem that needs to be fixed. And hopefully there's a resolution to this at some time in the near future, but it doesn't, I don't see it right now.
Brent: All right, let's get onto the hot take headlines. Market is great. That's good news. We had a good quarter. We're so far up this year, a lot. We're up this quarter a lot. That's good. Why don't you tell us about the numbers?
Matthew: Yeah. Some great news here. Stock market's been absolutely ripping, you know, in the face of kind of the negative, who's the leader of the country.
Matthew: This has been an awesome year. The S and P 500 is up 15. 7 percent and the NASDAQ is up 20. 6%. So just like last year, we're following up on a strong, having a strong year. We were telling clients, you know, good years, follow good years at the beginning of this year. So far we've been right with strong market returns.
Matthew: So that's great. You know, clap, clap to us for the quarter. The S and P 500 was up 4. 5 percent and the NASDAQ was up 8. 3%. So we've got that little sell off. I don't know if you remember Brenton, that April, May time period, the markets recovered. Yeah,
Brent: I mean, we're at all time highs, right?
Matthew: Yeah, all time highs.
Matthew: And, you know, some people always get scared of all time highs. They want to, like, sell their stocks at all time highs. But all time highs are actually a bullish market indicator. That means the market's going higher and it's probably going to continue to go higher.
Brent: That was my question. It's like, you know, everyone's asking it being an election year.
Brent: And with how much we've gone up so far this year in this quarter, is there more room to run?
Matthew: I think so. Yeah. I, you know, I think we're in this long term bull market. You got to remember we had a bear market in 2020 and a bear market in 2022. So there's a lot, a lot of room to run here. We have a new emerging technology, which is generally bullish for the economy and the stock market in AI. You know, are, are some stocks, have they gone up too much? Absolutely. But in general, if you're following that index based philosophy. You know, I think you're pretty good owning stocks here for the next few years.
Brent: Talking about stocks that have gone up too much. Is Nvidia gone up too much?
Matthew: Nvidia has gone up a lot.
Matthew: I think in the second quarter and video went mainstream, meaning we've been in this industry for a long time. You and I you've been in for 20 years. I've been in for over 10 and I've, we've never been asked more about a company or buying a stock than Nvidia. And I thought that was really interesting of the sentiment of the market.
Brent: Is there more room to run in the stock?
Matthew: Potentially yes. But I do think the fall from grace is going to be really really hard once that does come
Brent: And we've seen that across the board with a lot of stocks over the last five years
Matthew: Oh, yeah, absolutely what goes up comes down. We know that in the stock market Yeah,
Brent: you you got to sell some off at some point.
Brent: You got to have a strategy when you're Taking positive power. Like when you're selling off positions, like you got to take some profits off the table. No, I agree completely. What about apple and AI? Because I think a few podcasts we were talking about how apple was down and now apple has really gone up really well over the last several months.
Matthew: Yeah, just like NVIDIA, Apple hit a new high during the second quarter. The stock was actually beaten down for a while this year. I think it was down, you know, 10, 15 percent at some point, and then slowly started to climb back up and then they did the big AI day that we've discussed. And, you know, that, that shot the stock higher.
Matthew: I think one of the more exciting things about what Apple is doing is. You know, we're talking about AI all the time on this podcast. We've been talking about since 2022 and how amazing the technology is. I still don't think a lot of our listeners have actually experienced what the AI technology is.
Matthew: But what I do know from looking at the podcast data is most of our users are on iPhones. So once Apple rolls out these updates in September, October, November, whatever it is, they're now going to experience this, you know, magical thing called AI, and it's going to completely change
Brent: their phone. Yeah. I mean, I'm using chat GPT pretty much daily, but I don't think a lot of people are also using that daily.
Brent: Or I've ever used it.
Matthew: I don't think so either, which is good though, too, for chat GPT. Cause I mean, that's a, you know, another business open AI that should come public at some point in the next couple of years. And, you know, they have a lot of people they could sell their software to.
Brent: Now we know bonds have been in a bear market for many years.
Brent: What is bonds done so far this year?
Matthew: Not much, to be honest. So the best part of the curve, the yield curve seems to be where we're recommending our clients be, which is in the short 12 months or less bonds. Those are paying about 5 percent on a 12 month on an annual basis. But like most bond funds and stuff are flat to down depending on what part of the bond market they're in.
Matthew: We've been in a bond bear market since 2021. You know, most likely it's going to continue for the foreseeable future with rates this high.
Brent: All right, let's get into the second news. Tesla recently reported better than expected vehicle deliveries for the second quarter that significantly boosted investor confidence and drove up the stock price.
Brent: The company delivered 443, 000 vehicles, which wildly exceeded the expectations. What are your thoughts on just where Tesla is going? Because Tesla was another stock down. I 30 plus percent. It was down this year. And now Tesla is roaring back, but it also is, there's this like positive shift about their robo taxis and how we could be using their robo taxis versus Ubers in the future.
Brent: Like what's happening with Tesla to make them come back so strong so far.
Matthew: I think it's a number of things. I, you know, I do think people got a little overly bearish on the car business. We drive by the campus Tesla every day. Did you notice that a few weeks ago, the lot was pretty much empty. I didn't, I noticed a lot of cyber trucks.
Matthew: So I noticed a lot of cyber trucks as well, but what that's for is for the recall, because I don't think they're allowed to sell them yet. Like if they've sold them. So if it's someone, then they just have to bring them in and get the recall fixed. But I don't think they're selling new ones right now, or if they did, it just restarted a couple of weeks ago.
Matthew: What was the recall on? Something about the gas pedal. But there wasn't a lot of model threes or model wise on the upland lot. Like I noticed when I drive through in traffic, I'm like, Oh wow, they don't have a lot of cars. I wonder if they're going to have a big car number. Sure enough, you know, a big delivery number.
Matthew: But overall I think Tesla is just a case of a stock that got beat up a lot from, you know, the end of 2021 through this year, like you were saying, stock is well off its highs. It's gone up 30 percent in the last couple of weeks positive vehicle deliveries. You know, the AI positive about the future with robotics Elon starting to talk about mission two or plan two.
Matthew: I don't know what he calls that. But he's starting to like cheer the stock on again. So it's good for Tesla investors.
Brent: That is. And
Matthew: I think you were thinking about buying it, right? Yeah. I've, you know, it's crazy. I'm such a bad investor, good advisor. But on Thursday I was like, Oh, I should buy Tesla stock.
Matthew: Like it looks attractive here. Didn't buy it. Went on, went on a trip, was out of the office for Friday and Monday. Back in the office, the stock's up 30 percent in a couple of days. Yeah. You
Brent: missed that. I missed that. Yeah. You know what, but I was also thinking about buying more, but I already have a significant holding in Tesla.
Brent: So like, I didn't want to overload in Tesla. But I was highly considering adding some shares and I just kind of paused. And I, I, I kept telling clients, I go, you know, I think this Tesla stock is going to keep going back up and sure enough, it just took off and it happened when socks get on a run like that.
Brent: Like today it's ripping to socks, get on a run like that. There's just no stopping it.
Matthew: Yeah, it's cheap. And then now the analysts are out there upgrading it. Yeah. It's a going straight up like one of Elon's
Brent: rockets. Yep. All right. So let's get in the retirement planning corner. Today we're diving into one of the most important retirement planning questions, and that's what's your number.
Brent: Everybody always asks, do I have enough to retire or is what I have enough to live on the rest of my life and understanding how much money you need to retire comfortably. Is really a crucial sort of mindset to know and ensuring your financial security and peace of mind in your golden years. What we're going to kind of get into today is.
Brent: You know, what is your number mean? And what does that mean to retirement planning? And then what are some of the key factors to consider when determining your retirement needs? And then we'll talk about some of the tools and strategies to calculate your retirement number. But as we kind of get into retirement, your number, your number is actually the amount of money you need to have saved to live comfortably throughout your retirement.
Brent: So when you think about transitioning from work and your work paycheck stops, that like fixed income that you're accustomed to is going to stop coming in. And then all of a sudden now you'll have potentially social security. Some people will have a pension and the difference between your income and your expenses needs to come from somewhere.
Brent: So if you're getting 4, 000 from social security and your expenses are 8, 000, then you have another 4, 000 gap. That you need to cover to live comfortable for the rest of your life. But where's that 4, 000 a month going to come from each and every month? That's a complicated question to figure out because you need to make sure you have enough saved by the time you retire.
Brent: Cause if you don't, how are you going to go back to work and save?
Matthew: Yeah. So, I mean, technically what you're talking about is you need to have a 401k and IRA Roth IRA, and it needs to have enough to cover that income gap. And I think the interesting thing about like what your number is, Is everybody's numbers different.
Matthew: There's not a magic number for a certain person. For instance if you don't really have travel aspirations and, you know, you're pretty comfortable living on just your social security like you're saying, Brett, maybe your mortgage is paid off, don't have, don't have a debt. Maybe you have a car payment or a small car payment or cars paid off.
Matthew: Like, yeah, you could probably get away with social security and little retirement savings. We've seen social security do a great job of keeping up with the cost of living over the last couple of years as inflation skyrocketed. However, if you have these big ambitious retirement dreams, like most of our clients do, I want to go to Europe.
Matthew: I want to go to Asia. I want to give money to my grandkids so they could go to private school. You're going to need a couple million dollars at least saved.
Brent: Yeah, so I have clients that kind of reach onto both sides of those spectrums. Like I work, I'm working with a client right now that's a couple of years out from retiring and their house is completely paid off.
Brent: They, they contribute a ton of their salary into their 401k plans. And so their monthly needs and expenses and their lifestyle costs are really not that expensive. And so when we're calculating out these numbers and talking about their goals, You know, we're having a lot of conversations about once you retire, like, are these ambitions going to change?
Brent: Are you going to want to spend more? You're going to want to travel more. You're going to want to do these things more frequently and more often. And a lot of times, and even with them, the answer is no, like they want to keep living the way that they've been living. I mean, people don't go from being extremely cautious and frugal to solve a sudden start spending a lot.
Brent: When they get into retirement, you're spending habits, generally. Yeah,
Matthew: I've seen that with a lot of my clients, the ones who are spenders when they are going into retirement, continue to spend in retirement. The ones who are really, really good savers. I don't want to call them frugal, but you know, maybe they really think hard before they purchase something.
Matthew: They still do that in retirement and, you know, a lot of times they want to maybe keep putting money away in retirement. Spending is a foreign concept to them.
Brent: Yes. And that's, that's okay to be like that. And it actually makes it easier when you're in retirement because your money is going to go a lot longer.
Brent: I mean, think about. You know, if you have a million dollars in your retirement account and you're taking a minimal amount every year, that's just more money. That's shares are staying invested. That's more money compounding. That's less money you're taking out. If the market is down and your money is going to stretch out, And give you a lot more over time on the flip side of that, it's, it's, there's nothing wrong with being a big spender or wanting to have an extravagant lifestyle or wanting to travel more, wanting to potentially sell your home and upgrade to a different home in retirement.
Brent: All of those factors are fine. It's just, you have to be prepared that you're probably going to need to save a lot more. To make sure that your money lasts and to get to that point where you're figuring out what your number is, is a calculation that needs to be thoroughly thought out and worked on with a number of different ways and sources and with your advisor, because you don't want to get to that moment.
Brent: Halfway through retirement think I was a half million dollars short or I was a million dollars short or I was short.
Matthew: Yeah. We're not even get that far. And you just accidentally spent it all. All right, well, let's get into some of these key factors. Cause I think there's a lot here and they, they're going to impact people as they're going out there looking to calculate out their number.
Matthew: Cause you know, we have a lot of home gamers who listen to the podcast, that they might not want to hire an advisor because they heard some negative news on the internet or had a bad experience before. So maybe we'll give them some of the things that we do with our clients. And I think the number one and the most important, and you can tell me if I'm wrong, but I think it's retirement age.
Matthew: Retirement age is going to dictate how long you need that money for. Now, if you retire at 70, it's a completely different ballgame than retiring at 60 or even like 59, right? Yes. Because you're, you're shortening the amount of time you need to rely on your money. So I think retirement age plays the biggest role in it.
Brent: Yeah. So one factor that we always think about. And you can kind of calculate out to when you start to lay out the numbers is like, let's say you're ready to retire at 55 and you knew that you're not going to collect social security for seven years. Like you pretty much from 55 to potentially 62 or longer Are going to have zero income outside of what you're going to collect from your portfolio Your number is going to be bigger much bigger if you're going to Retire at age 70 And then all of a sudden you're going to get the max benefit you can from social security Your number is probably going to be smaller, you know life expectancy is the same You know Probably whether you retire at 55 or 70, I mean, you know, your standard life expectancies are going to be pretty much the same.
Brent: So retirement age is a, is a very, very critical factor.
Matthew: The funny thing about that though, is like when I get clients who are retiring at 68, 69, 70, they tend to have a lot more money saved, right? And then they get that bigger social security. Then the clients who are retiring in those late 50s early 60s because they didn't work as long So that that's the other thing about working longer as you do get to save more right
Brent: there's but there's a trade off with that, right?
Brent: Because there's a lot of people that may not want to work all the way until their seventies and somebody who retires at 55 potentially could be enjoying a very large portion of their life, not working, doing the things that they want to do. And that yes, they have less time to save. But if you can retire early, you know, they find purpose in doing other things in retirement where some people find purpose in work.
Brent: Right. Right. Have you put any thought into your retirement? I have, and I do because we do this every day, but I don't know where I fall between 55 and 75. You know, at this point I find a lot of value and purpose in doing the work that I do. I mean, what is your thoughts on it?
Matthew: Yeah, I don't know. I don't, I don't see it being super attractive.
Matthew: But again, we're in a lot, a big I'll start over. We're in a much different position than, you know, people everyday Americans who are going to work in that nine to five, go into a big corporation. We're a small business here. We're all friends, me, you and Josh we like Paulina too. So
Brent: and, and we're friends.
Matthew: You and me? Yeah. Sometimes. Yeah. Sometimes we're friends. All right. But then also another thing that's going to impact that number is those trips, right? How lavish are the trips? How often do you want to go on them? Cause I mean, these, these European trips, even like a Hawaii trip, you know, you can easily spend 50, a hundred grand and only be gone for, you know, two to three weeks.
Brent: Yeah. And people think that that number is probably crazy because a lot of people in retirement are a little bit more cautious with their trips are spending two to five to seven to 10, 000. But we also have clients that do spend big numbers on their trips. And, and that isn't hard to do.
Matthew: Price out going to, you know, Disney world or Hawaii with the grandkids.
Matthew: You 20 grand at least when, if you include airfare, where you're staying. Activities, food, you know, things are expensive in Biden's America today.
Brent: And I think a lot on average, if you asked me what I saw or do see with the amount of money that clients on average spend with trips, I would say that the average number of trips a client takes is probably two to three a year.
Brent: And the, probably the average amount of money spent on trips is somewhere around probably right now, 12 to 20, 000 on trips. So if you're trying to think about how much money you're going to need towards that side money to do your trips and travel the way that you want I think that's probably kind of what we see right now as an average.
Matthew: Yeah, that's a good point. And then another big factor is like, how's your health, right? Cause we know healthcare costs in retirement are kind of like that iceberg below the surface. Where we're not quite sure what they're going to be but they could be significant and you could one day need to end up in a facility.
Matthew: And unfortunately what we see when people end up in those facilities is that's usually what starts draining those assets, right? Like a longterm care facility. Maybe your, you start to lose some cognitive function like we were talking about earlier about the president and you need to be in a care facility.
Matthew: This could significantly drain the assets. And it's, if it's something that concerns you, you probably had, should have some money put aside for
Brent: it. Yeah. When I think about people planning for their retirement and the amount of money that they're going to need. And when I think about the people who are retired and have this pot of money, the thing that I always try to defer clients from doing is being so concerned about spending their money during their retirement for the event or in the event that they're going to need that money for long term care.
Brent: Because how would that be? Like, how bad would that be? If you got through your whole life, your whole retirement chapter stage, you're at the, you know, you're towards the end of your life. And then you pass away, you never ever need long term care. You didn't know you're going to need it. You never need it.
Brent: You pass away and then you leave all of this money. And then that money's gone. You never got to enjoy the fruits of your hard work. Like that's not cool. That's not fun.
Matthew: And nobody wants that. But you know, at the same spot, just, you know, let your kids take care of it. So your kids say they got the healthcare.
Brent: Yeah, but you do want to have that covered. And we did a whole podcast on long term care and the ways to cover yourself for long term care and our thoughts are on long term care, but to avoid that from being a deterrent from you being able to enjoy your retirement, I'd say go back and listen to that pod.
Brent: Cause that's important.
Matthew: It's an important one. All right. And then our last factor that's going to influence your number is, you know, what your income source is going to be in retirement. Do you have rental income? What's your social security? Are you paying into a pension? Right now I come across three types of people who retire in their fifties.
Matthew: They retire early. And you can tell me if I'm wrong, Brent. And these are the ones who kind of come through the door. You know, we do see a lot with police. They get the nice pension from, from the state of California.
Brent: Yeah, or teachers. I mean, there's a lot. There's a lot of people with pensions.
Brent: There's, there's less private pensions now in private companies. It's mostly all either some type of state or government job. Most of the teachers
Matthew: though to get that big benefit have to stay till 60. They can't they can't number of years of service. Yeah, they can't retire usually in there in their 50s like police and fire cannon, right?
Matthew: Finally the last one this is a new one that's been coming through the door a lot more frequently is actually Specifically doctors who work for kaiser with the way kaiser's pension plan is currently set up on on their plan to You could retire in your mid 50s
Brent: And I think the reason why income source is so important and if you're Sitting back at home by the end of this pod I mean, I hope I hope that you could figure out what your number is going to be But this is the one of the biggest factors that you want to calculate out I mean if you you already probably know based on an estimated time of when you're going to retire what you're going to get from social security and if you're going to get A pension that too and if that number again is four thousand and you know that you're going to need eight thousand You're four thousand dollars short a month That number is going to help lead you into how much you're going to need to save by the time you retire.
Brent: But if you're going to get 4, 000 from social security and you need 14, 000 a month and you're 10, 000 short, that's going to be a different number. And that's why everybody's number is different.
Matthew: Right? Right. Well do you have anything left on the factors or should we kind of teach people how to calculate their number?
Matthew: Let's talk about the tools. Right. Right. Okay. Yeah. So let's, the tools I'll go first. I'll talk about my favorite one. The 4 percent withdrawal rate, right? So in a way you can kind of use this to work backwards to figure out where your number is, but like you were saying, look at those fixed income sources, pension, social security, whatever it is you're going to have.
Matthew: So that's, that's your first source, right? So let's, you know, say. 5, 000 right from fixed income sources. And then if you need 10, 000 to live comfortably in retirement, if that's what you decide you need, that means you need five from your investments, right? So you could use the 4 percent withdrawal rule that says you could withdraw 4 percent of your retirement funds per year in retirement.
Matthew: So if you have. You know a million bucks, 40, 000. If you have 2 million bucks, 80, 000 and you'll never run out of money and that could close
Brent: your income gap. Yes. And I think this, and this is why I think it pertains to people who are also retired, because if you go out and calc, if you go right now and calculate out, How much you're collecting from your portfolio? Is it 4 percent or is it higher? And if it is a lot higher, then you should probably reconsider how much you're taking out because it could potentially run out. No, there could be other factors, right? Like, Hey, you're from 65 to 70. You're going to take out five or 6 percent of your money because you're going to travel and do these extra things.
Brent: And then in your seventies, you plan to scale back. And so there's, there's a lot of this sort of fluid movement that we work on with clients about. When and how much they're going to take out and the way that their cashflow plans out and their projections are withdrawals. And we plan all of this out in such great detail.
Brent: So it's not always just the straight 4%, but is definitely a baseline rule that it can be very helpful for you to calculate. Is your, what are you going to need when you retire and is the number that you're taking out right now too much or too little?
Matthew: Yeah, it's not smooth. You want it to average 4 percent over the course of your retirement, but some years can be more, some years could be less.
Matthew: Now,
Brent: what do you think about online calculators though?
Matthew: I think they're good to help people get started. I mean, you know, there's a lot of people who like to do this themselves. They don't want professional help. They want to file their own taxes. They want to do their own investments. They want to do their own retirement planning.
Matthew: You know, those calculators are really nice to get them in a ballpark.
Brent: You know what? If those are like to me, I used. Have you ever used a Tesla autopilot drive you somewhere? Yeah. Yeah.
Matthew: What was your thoughts? It's a lot better than standard car. You know, cruise control. It's very, very good. Amazing
Brent: technology, but not a hundred percent there yet.
Brent: Yeah. To me, it was like, yeah, it can get me from point A to point B. It felt like a robot was driving me. And it was like every stop sign, you just come to a screech, like this whole stop and then your car kind of jerks. And then it speeds up super fast there. It's like, just, it's almost like a robot is driving you and there's no actual thought put into it in terms of like, it's not natural.
Brent: It's not this natural movement. I think the calculators are the same way. They're very stale and sterile. It's not going to get you probably to the perfect or to the close number. It's just going to give you a general number and it's not probably going to be that helpful to you. I think when you work with an advisor that has the experience of working with cashflow projections and you're working in software that can provide you detail and more dynamic numbers.
Brent: I think that becomes where you can really dive and get into that number.
Matthew: Yeah, I agree completely. You know, good starting point kind of helps you out, but. You know, there's, you probably need an advisor to do this. This is very complex. The level of detail and planning that goes into, you know, getting someone retired and, you know, there's the first step there's actually retiring.
Matthew: And then there's making the money last for retirement, right? Getting through retirement. That's, you know, the whole point of this you need to hire an advisor. And there's a reason why 90 percent of all millionaires have a financial advisor, It's because they want advice on their money.
Brent: I think in the three steps of retirement, preparing, transitioning, and enjoying, I think all three of these steps.
Brent: Are very important in determining where your number is like if you're sitting there and you're 45 years old right now And you're trying to figure out if you have enough money to retire on or how much you're going to need You know, then you work backwards on thinking Okay Now I can contribute x amount of money every year and that could hopefully get me there with a simple rate of return You know you you can work that number out on what you're comfortable with Or if you are transitioning to retirement or you're a few years out You You can start to work backwards and say, okay, do I have enough now based on these factors?
Brent: And then if you are in retirement, you know, you can start to look at what you're taking out. And if you're not taking out anything great you might want to, to start enjoying or spending a little bit more, but those are good ways to start figuring out how much money you need to save to retire.
Matthew: So I'm sure the listeners are wondering at this point, they want to know what our numbers are.
Matthew: That's what I was thinking. Do you know what your number is? What's your walkway? 10 million.
Brent: Seven. You know, I think my goal right now, because it's hard at my age to say specifically what my number is going to be because I don't necessarily know exactly what I want my lifestyle to be in retirement.
Brent: But thinking about this thing in great detail, I know that I'm going to want to conservatively be able to take out 4 percent of my money every year. I don't want to go above that. And as I start to get a little bit closer to thinking about what would be paid off, do I have another home? You know, some of those factors I'm still considering.
Brent: I think the biggest thing that I continue to do is maximize my contributions to my 401k, which at the company, we obviously get a match. And and then also continue to dollar cost average and buy more shares continually in the market, not be afraid of down markets, rebalance properly, continue to invest.
Brent: Because I know if I follow proper fundamentals, regardless of what that number, as I get closer, is going to be it's going to get me to the point where I need to be at to have that number 5 million for me. I'm out. That's what it
Matthew: is. Ah,
Brent: I don't
Matthew: know. You
Brent: know, maybe
Matthew: it's not. That sounds about right. I
Brent: mean, you have to know kind of what your number is.
Brent: I mean, you know, 5 million, 4 percent withdrawal, you have 200, 000 a year coming in. I mean, we have a lot of clients that are business owners that want to be at somewhere around that number. So
Matthew: I think that's a pretty good number for today.
Brent: Yeah, I think people are age. Cause you see this in right now, a household income between a husband and wife is going up a lot.
Brent: It's a lot more than it was 15
Matthew: years ago to raise a family in California. If you want to have that standard family of four with a house you need to be making at minimum. 200 K a year in California most likely just to survive. You really need a quarter million. So two 50 joint income. And
Brent: I think that's why that 5 million number is a lot more important and a lot more because people who are retiring right now, if you're somewhere even between 800, 000 and 2 million, If there's a good chance, because potentially the house has paid off, you're at like a really solid number potentially, but our generation, like that number is going to double.
Brent: You're going to need a lot more than that. Right?
Matthew: So what you're saying is if you're in your late fifties, early sixties, seventies, listen to this podcast. Sounds like your 30 to 40 year old kids need to come see
Brent: us. Yes. And they need to start earlier and they need to be more aggressive towards their retirement savings.
Brent: Yeah, I agree. All right. So let's get into recommends. Do you have any recommends for us?
Matthew: Yeah, I got a Netflix show. I know listeners and say, Matt always recommends Netflix shows but this is a good one. I'm going to come at you with a little reality TV owning Manhattan this real, the new real estate show on Netflix.
Matthew: It's I don't really, I'm not a big real estate show guy. This show is really good. The reason I like it, it's like 80 percent closing deals, 20 percent drama. So like the big problem with a lot of these reality TV shows on Netflix that are like real estate driven, is there 80 percent drama, 10 percent parties, and you know, like 10 percent closing deals.
Matthew: This is mostly just going out, grinding, closing deals. And you know, if this doesn't make you like excited about like business or opportunities, I don't know. You know, you're just not a business person.
Brent: Yeah. So only Manhattan is Ryan Sirhan Sirhan show. He was on million dollar listing for. Probably a decade in New York.
Brent: It's, it is a very interesting show. It just came out last week. I've only watched one episode, but it is very good. I'm more familiar with that show just because I've. It's watched a million dollar listing and I love the sell and watching real estate transactions take place, the business side of it all.
Brent: But it is a good shot. I'd recommend that as well. I would absolutely love to
Matthew: watch that
Brent: show with you. Cause I, I just know it's going to fire you up. Yeah. And then I'd recommend something that I've recommended in the past, but another good reminder we use last pass here. At least I think what, five years ago, Matt, eight years ago, you told me to start using last pass.
Brent: There's so many passwords you have to hold. And it's a software that's able to hold all your passwords. So you're not trying to keep them all in a notebook or try to remember them all. I mean, we have so many clients that were, we help out so much and I'm like, Oh, just log into that account that you have.
Brent: And they don't know what the password is. Last pass is a software I would recommend looking into it. Try to use something that is able to hold your passwords because nowadays it's like almost like you go into any website. You have to have a password now. Like you, you do anything you have to have passwords.
Brent: I mean, how many passwords do you have?
Matthew: Thousand? Yeah. I couldn't even tell you. I mean, every website has a password. Yep. So, yeah, probably at least 500.
Matthew: All right, Brent, before we, before we stop recording we got to do some plugs. All right. So our first plug let's plug our Instagram, right? We're putting a lot of effort into our Instagram videos. We have two new, we had 10 new videos coming out this month. One with Paulina. So Pauline is making her video debut.
Matthew: Then a five for me, four for you. So give us a follow on Instagram and watch those educational videos. And then also Pauline is real estate license, right? Yes. So we sent an email out about Paulina. She got her real estate license and, you know, she'll be able to assist our clients and hopefully at least giving them, you know, either some transaction level data or even potentially selling or buying a new home, which is really, really exciting.
Matthew: I think we're super stoked about that.
Brent: Yeah. One of the reasons that we decided to do that was we've started seeing clients that would either inherit properties or go to sell their properties in retirement. And what we're finding out is that, and I'll give you an example, a client had a home that they inherited.
Brent: It's worth about a million and a half bucks and they had the realtor put it on the market. The realtor agreed to put it on the market at a price that was probably a quarter million dollars under market value. And the realtor bought, the realtor had both the buyer and the seller. Hmm. And so I think that there's things sometimes in real estate, we want to have some micromanagement on so that we can make sure our clients are taken care of properly.
Brent: We wanted to bring Paulina to do that and to have us assist clients with their use real estate transactions. So I think she's going to be a great tool and go check out her video. I was kind of teasing her and making fun of her and giving her a hard time about her video that she just put out. It was, it was her first one, probably better by far than any of our first ones.
Brent: But I was given a hard time and if you watch it, tell me, you know, give us a message to let me know if you picked out what I've, what I've found.
Matthew: Yup. And then last thing on Paulina, if we get enough response, maybe we'll let her come on the podcast and talk a little bit about real estate. And
Brent: then let's give away a hat, Matt.
Brent: We have, we have these amazing Evermont hats. I have a white hat with a blue logo. Send us a DM. We'll sh we'll ship it to you. We'll send it to you. Send us a DM and we'll get that hat sent out.
Matthew: All right. Perfect. Well, if you are listening to this on the 4th of July hopefully you have a nice barbecue and enjoy the fireworks.
Matthew: If you are listening to this after the 4th of July, hopefully you didn't blow your hand off. But. Let's close the show.
Brent: As advisors, our passion lies in assisting others, and that's the reason that we do it. I mean, we look forward every day to helping making sure that you have enough money to live comfortable for the rest of your life.
Brent: That also that you're enjoying your retirement and you're enjoying the money that you worked hard to save. We invite you to download our ebook directly from our website and for access to the show notes, please head over to retirement plan, playbook. com. As always, thank you for listening. Thank you.
Thank you for tuning into the retirement plan playbook. If you enjoyed today's episode and want to stay updated, please click the subscribe button for notifications on new episodes. For personalized financial guidance, or to connect with our team, you're welcome to call us at 909 296 7977, or visit www.evermont.com for a complimentary consultation. Your journey towards a successful retirement plan continues, and we are here to help every step of the way. Until next time, keep building your future. The information covered and posted represents the views and opinions of the guest, and does not necessarily represent the views or opinions of Evermont Wealth.
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