WWII Ep 9: Retirement End Game, Stock Market Crash, Real Unemployment Rate, S&P 500 High

This episode is part one in a three part series about retirement planning, and the first thing we want to do is calculate your Retirement End Game number.

. Defining what your retirement needs are assets, and cash-flow

· How much take home cash flow will you need in retirement

o Fixed expenses

§ Where will you live

§ Will you move to a retirement home eventually

§ What are your rent / mortgage payments

§ Car paid off or leased?

o Variable expenses

§ Medical Expenses

§ Travel

§ Charitable Giving

§ Food

§ Sundries

§ Hobbies

· Add it all up to create an average monthly take home, then annualize it

· That is your annual take-home requirement

· Now subtract any monthly pensions (after tax), social security received (after tax) to get to the amount of income (after tax) you will need from your investments portfolio. This is your "REQUIRED INVESTMENT INCOME AFTER TAX" or RIIAT.

· Assume your RIIAT is $100,000, and assume a 3% after-tax yield on your portfolio and divide your RIIAT by .03 to get the total assets you would need to generate the after tax income as $5.53M

A whole generation of Americans will retire in poverty instead of prosperity, because they simply are not preparing for retirement now."

Scott Cook

Ask JB:

Ask JB: greenclosettree asks I'm currently investing most of my money in stocks - however I'm concerned that someday in the future there would be a stock crash - and then most of my hard earned money would go to waste.

What are your idea's on preparing for a stock crash? E.g.:

  • set a stop loss (however, when there is a crash it might sell significantly lower than intended..)
  • weather it out - just be sure to invest safer once you come closer to pension age
  • hedge with other financial instruments

When I look at other financial crashes I think it is almost a certainty another stock crash will happen some time in the future. Or am I being too paranoid?

Do you have a burning question on investing you would like answered? Click the button below to send it to me and I will answer it on the podcast!




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Thoughts on this podcast? Disagree with me on some point? Something I missed? Leave a comment!

About the Author

Jeremy Scott Bailey is an investor, author, entrepreneur and host of the "What Works In Investing?" podcast now available on iTunes. He is founder and Chief Investment Officer of Burgeón Group, Inc. an investment advisory firm that provides portfolio management services to families and individuals.

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