How to not out live your retirement:
Bottom Line: It’s hard to get through a day without finding a few stories on retirement. With thousands of Boomers reaching the traditional retirement age every day it’s become the thing to day for many media outlets in their financial news. Candidly I find few new ideas and even fewer good ones. In reading one of these over the weekend, it reminded me that it’s probably time to share my view on building the best retirement scenario possible.
Any retirement building plan should be constructed with you financial planner/advisor. With that out of the way… Where I first spilt in view with most retirement planning stories is that I don’t believe that principal reduction should be part of a retirement plan. To begin with you don’t know when you and your spouse will die. You don’t know how much adversity you’ll experience or how expensive that adversity will be. So with that in mind… Rule number one of retirement planning in my view is…
- A mortgage is not a retirement plan
We want as much certainty as possible going into retirement. Having your home paid for is a big first step in that direction. So you’re not ready for retirement until that big first step has been accomplished. Next up the income you’ll use in retirement.
Simply put I don’t endorse any retirement plan that includes principal reduction (unless the retiree is ubber wealthy). So how then do you retire and when? When your income from interest, dividends and any additional income (like Social Security) is sufficient to support your chosen life style. Let’s say for example that you are desirous of an income of $75,000 per year. If you had a portfolio of investments that averaged a yield of 4% per year and you have Social Security payments of about $2000 per month.
- Social Security income: $24,000
- Portfolio investments totaling $1.3 million @ 4% yield would produce an income of: $52,000
Invested well, your portfolio should also grow to accommodate for inflation over time as well. That way if you live a long healthy life you won’t find yourself in the super sad situation of having exhausted resources and losing your lifestyle and worst of all… you home.
If you missed it... Apple update is a must:
Bottom line: If you have an Apple device that runs either iOS 7 or 6 you need to ensure your device is up to date. At the end of last week Apple released an update to iOS 7 & 6 that is extremely important, especially if you ever use your devices on a public Wi-Fi network. In short, a security flaw in Apple’s OS enabled ill doers to be able to fully access one’s communication on a device through a Wi-Fi network. This included even encrypted information. So emails, user names and passwords used in apps, etc. could have been accessed and compromised.
This is also a reminder than you should disable the auto-connect to any Wi-Fi network feature on your device. It’s best to ensure that it only will connect to protected Wi-Fi networks that you designate as safe.
Indeed marriages with financial expectations set are the most likely to succeed:
Bottom Line: This is the second part of a two part mini-series of money and marriage from Credit.com. If you missed the first part on Friday…
- Money is still the most common reason cited for divorce
- Of divorced couples 45% never had a serious discussion about finances prior to marriage
So just how effectual is having the money conversation?
- 80% of couples who are on the same page with financial decisions say they are somewhat or very happy with their marriages
That shows just how important money and marriage really is… That figure would indicate that only about 20% of marriages among those who agree with financial decisions are at risk of divorce vs. about a 50% divorce rate overall. The happiest marriages are with couples who:
- have low debt
- similar credit scores
- discuss big expenses prior to making a decision
No real surprises except that being on the same page financially is simply more important to the outcome of the marriage than any other consideration.
Windows 8 computers about to get much, much cheaper:
Bottom Line: Windows 8 has had the first year and a half run of any Windows OS. Some of it is increased competition and market share losses to Macs but really most of it is due to fewer computers being purchased. Many people, especially younger adults have opted to go with a tablet over a computer. Computer sales have be lower every year since 2010. Microsoft has decided that it’s time to change its strategy and compete on price with even the cheaper tablets and so prices are coming down significantly.
- Microsoft is dropping the price of Windows 8 by 70%
That means that laptops with Windows 8 will be readily available for $250 or even less. This comes at an especially good time with many people still running Windows XP that are being pushed off of the legacy platform as Microsoft will phase out support of it starting in April.
Looking for love? Put in as little info as possible - next hack attack:
Bottom Line: One of the more recent threats by ID thieves… Dating sites. On dating sites we’ll often put as much personal information into the site (even if it isn’t made available for the site members to view) because we may feel as though the more specific personal information we enter, the more likely we are to find the right person. The ID thieves know that too. So for example…
If you have old addresses, places of work, maiden and/or former names, origin of birth etc. on the site… If that info falls into the wrong hands it may be enough to compromise your ID. So… as the old expression goes. If in doubt, leave it out – when it comes to optional personal info on dating websites.
Lots of surprises - Autos most likely to make it past 200k:
Bottom Line: If I asked you what vehicles are not only the most likely to reach 200,000 miles but keep humming right on past it, what would guess? I would have though that sedans would be the most likely (given easier driving generally). Not so. According to a 30 year study of vehicles from 1981 through 2010, the following vehicles were the models most likely to be good for more than 200k.
1. Ford F-250 Super Duty: 4.3%
2. Chevrolet Silverado 2500HD: 3.6%
2. Chevrolet Suburban: 3.6%
4. Toyota 4Runner: 3.5%
5. Ford Expedition: 3%
6. GMC Sierra 2500HD: 2.7%
7. Chevrolet Tahoe: 2.1%
8. GMC Yukon XL: 1.9%
9. Toyota Sequoia: 1.7%
10. GMC Sierra 1500: 1.6%
GMC Youkon: 1.6%
So only one car, just the Accord at #10 dented the list with 1.6% of them surviving past 200,000 miles. As you can see it’s all about the trucks and SUV’s and for that matter, Amercian made trucks and SUV’s. This was the result of a comprehensive study of more than 30 million vehciles by iSeeCars.com
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WJNO Financial Analyst & Co-Host for The Palm Beaches’ Morning Rush
I work every day to keep you ahead of the curve on the crazy state of the economy, business, investments and technology.
My motto: Passion plus talent is unstoppable.
My faith: Don’t worry I don’t use the mic to preach but… I firmly believe that without God in our lives happiness will never be found. I believe that many of our societal failures have resulted from a general willingness to distance ourselves from our founding values while embracing political correctness.
I'm in my 19th year with iHeartMedia and 11th in South Florida. With my father as inspiration, I started investing in the stock market when I was 11 and co-founded a smoothie company at 18. The highlights of my radio career have been serving as a fill-in for Sean Hannity.
I've made my share of mistakes along the way as well. I shape my perspective from success and failure to provide you with a truly objective picture of business and money in your world. Business and investing are passions of mine. Some read Dean Koontz... I read financial reports.