Today’s Smart Money Question:
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Here Are Just A Handful Of Things You’ll Learn:
On today’s episode we’re talking about accumulation versus decumulation. People are used to saving money for retirement, but are you prepared for what happens when you actually retire?
In the accumulation phase, I recommend investing 85% to 100% of your money in stocks if you have decades to go before retirement.
You should consider taking as much risk as possible when retirement is decades out. The volatility that’s in the market actually becomes out friend. If you buy when the market is low, you’ll reap the rewards of that over time.
But you still have to be able to stomach that. It is important to be consistent in how you are investing on a monthly basis.
You need to plan for tomorrow. Once a year, look at your budget and figure out where you want your money to go. The younger you are, the less you have to put away because you have so many years to invest.
You need to have different risk buckets and plan for inflation. You need a plan for your income and taxes. We can talk about Social Security, your pension, real estate, etc. You need to figure out how much risk you’re willing to take.
We suggest you look at company benefits available to you and max out those benefits, such as a company 401k match. If you are married and have kids, make sure you have a personally owned life insurance policy. The cheapest way to do that is term insurance.
Listen to the full episode or use the timestamps below to jump to a specific section.
4:42 – Accumulation vs. decumulation
7:23 – Stocks
10:02 – Budgeting
11:42 – Risk buckets
16:32 – Disability insurance
18:01 – Life happens
“It is important to be consistent in how you are investing on a monthly basis.”
-Matt Hausman
Additional Podcast Episodes:
- Should I Downsize My House in Retirement
- State of Washington’s New Payroll Tax is One to Watch
- How to Handle an Unplanned Retirement
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The host: Matt Hausman – Contact – Resources – Call: 610-719-3003
