Today’s Smart Money Question:
As we move from work to retirement, we experience a paradigm shift. Suddenly, we’re moving from wealth accumulation to income distribution. Matt explains.
(Click the featured times below to jump forward in the episode)
Here Are Just A Handful Of Things You’ll Learn:
00:50 – A Recent Client Meeting Leads To Re-Thinking Retirement.
- A call with a recent client leads matt to explore the paradigm shift that occurs between our working years and retirement. He explains the shift from collecting a paycheck and accumulating wealth to preserving wealth and creating income in retirement.
4:16 – How Will You Produce Monthly Income?
- By the time you work for 40 years, you’ll probably have gotten used to that monthly paycheck. When you retire, you’re left with whatever you’ve saved and that’s it. It can be scary to think about where your income will come from and what will happen if a market correction eats into your portfolio.
6:18 – Shifting The Paradigm From Accumulation To Distribution
- The paradigm further shifts when you realize you’ve gone from a “save, save, save” mentality to a “spend, spend, spend” mentality. It’s hard to withdraw from a retirement account you’ve been investing in for 40 years.
6:50 – What Do You Want To Do In Retirement?
- Consider what your retirement will look like. What are you going to do when you’re no longer working a 9-5? Will you volunteer more, travel, find a part-time job? How will you fill that void.
8:35 – Envisioning Your Retirement Eases Fear.
- The fear of the unknown is a real thing. After all, retirement will dramatically change your daily routine. Taking some time to dream and strategize will ease your frustration and prepare you to step out of the office.
11:44 – 12 Things To Know About Social Security.
- Many folks today wonder what Social Security will look like when they retire and whether it will even still be around. A recent article from AARP Magazine works to help set expectations for Social Security.
13:20 – Social Security Will Not Go Bankrupt.
- That’s one of the greatest misnomers about Social Security. We think it will dissolve, but in reality, it will just look different in the future. Make no mistake, politicians work really hard to stay in office, and dissolving the Social Security program might not work to help them stay elected. While it might function differently in the future, it will still be around.
16:03 – Lawmakers Do NOT Raid The Trust Fund.
- Another myth surrounding Social Security is that Congress and the president use the Social Security trust fund assets to pay for other initiatives. That’s simply inaccurate, and the trust fund will not be running out as a result.
18:05 – Social Security Should Not Be Your Sole Source Of Income.
- You should have other sources of income to compliment your Social Security benefit, but understanding how Social Security will affect your income in retirement will help to assuage your fears that come along with that paradigm shift.
19:30 – Social Security Is Digital.
- Go online, create a profile, and track your benefits and earnings records.
The Answer:
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