Keen On Retirement

According to a recent Charles Schwab survey, U.S. workers believe they'll need around $2 million to retire. Using the old 4% Rule for some back-of-the-napkin math, those retirees are expecting to withdraw about $80,000 their first year in retirement, with future withdrawals going up or down from there based on how much annual savings and investment returns replenish their assets. We also know in most cases there will be other income sources like social security or pension income. So, is $80,000 per year from your investment portfolio, give or take, enough to live on in retirement? That's a much more complicated question to answer than some folks realize. So many factors that affect retirement planning are in a state of constant flux – most of all, your life. A financial plan that's built around static numbers might not be able to adjust how and when you need it to. Let's talk about some of the variables that factor into Keen Wealth's comprehensive planning process and try to arrive at a more thorough analysis of a $2 million nest egg goal.

Happy 2024 from the team at Keen Wealth Advisors! The Dow sent us into the New Year on a high note -- literally -- by hitting a new all-time high in December on the back of some very positive economic news. Employment and job creation are still strong. It looks like we're going to avoid the recession that some analysts have been predicting for the better part of two years. And the Federal Reserve is hinting that it might be done with interest rate hikes as well. That's a pretty good jumping-off point for a year that, I can confidently predict, sure won't be boring. Elections, Olympics, big changes to how and where we work, advances in AI and other tech, ongoing conflicts across the globe, Leap Day -- there's a lot to look forward to in 2024, but also a lot of very serious matters to keep tabs on, and a lot of potential distractions to filter out of your financial planning.

How do you adjust your financial plan to cope with inflation, higher interest rates, and an up-and-down economy? Our most popular blogs and podcasts of 2023 all touched on that question in some way, especially from the perspective of retirees living on a fixed income. Our discussions also eventually arrived at a similar conclusion: you need to have a plan! Comprehensive financial planning puts tools at your disposal that can keep you on track for a successful retirement, no matter what’s happening in the outside world. And working with an experienced advisor, like my team at Keen Wealth, could potentially eliminate so much of the worry and uncertainty from figuring out what moves are going to keep your short-term needs and your long-term goals in sync.

On November 28th, Berkshire Hathaway Vice Chairman Charlie Munger died at age 99. Munger and his partner, Warren Buffett, became billionaire sages whose words reverberated throughout the markets. Their appearances at Berkshire's annual shareholder meetings were appointment viewing for many financial professionals. And while Charlie's "Mungerisms" often served as a succinct counterpoint to Buffett's more loquacious commentaries, the two were almost completely in sync on how they thought about work, investing, and philanthropy. On today's show, we reflect on the lives and legacies of these two business icons and discuss what lessons investors and seniors can learn from their phenomenal success.

In many ways, the holiday season is a mirror of what life in retirement can be like. Folks are off work, if only for a few extra days. Schedules tend to revolve around the people we love and the things we enjoy doing, especially cherished family traditions. And even though there can be some stress around prepping meals and crossing items off your shopping list, there are also pockets of quiet where we can enjoy good company and a warm beverage while we reflect on what matters the most. As you celebrate the holidays and prepare for the New Year, consider ways that you can incorporate some of the season's fellowship and good cheer into your 2024 retirement plan.

When we fall behind on our holiday shopping lists, there are usually some last-minute deals and expedited shipping options that can help us catch up. But if you fall too far behind on your annual financial planning checklist, you might miss out on some important rule changes or time-sensitive strategies that could impact your retirement next year. Based on the questions we've been fielding lately from Keen on Retirement listeners and readers, I'm glad that so many folks are making time during the holiday hustle and bustle to think about some important issues and get a jump on their 2024 financial planning. On today's show, we discuss popular questions about next year's tax brackets, a controversial video about retirement withdrawals that's been making the rounds on social media, and how seniors should be planning for long-term care.