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6 key elements to retiring in 5 years or less

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    Abe Ashton on what you should think about so your plan is ready the day you retire

  • Duration 8:48
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-- one of the top retirement experts in the nation joining us right now -- -- a -- with one for the money financial.

-- retirement expert is that really true well.

My retirement expert I guess we use expert loosely but I do a lot everything yeah yeah I'm sure your set -- Yes I -- set up for my retirement trying to help everybody else -- well.

We'll get there every day.

So -- -- stiff clinging for -- yeah at least who have less.

Not not nearly enough I think the last -- of the less than 10% of Americans are prepared for retirement so why aren't.

You know it's because we're we're we're really society procrastinators.

And we don't really have a date in mind anymore and yet things in the retirement industry are changing faster than.

Any other time and our life when we're talking about pensions and income and Social Security.

Although -- and I that's all in constant flux so how do you plan for that when.

When the things that -- used to be able to count on are no longer there how long do you see -- working on average until what -- -- -- You know prepping for many people it's going to be close to seventy years old and I think that I don't think so I I won't -- surprised.

We are living longer which -- -- a good thing I guess and a bad thing.

Right and our -- -- so much more now I mean there are.

We were joking in the break -- including another Twitter account you know I do with seniors the pretty soon seniors are gonna come all these mobile devices that have Twitter accounts and all those things expenses and a monthly data -- you know absolutely.

-- we're talking about six key elements that you found.

Right so we can be sure that we can retire with like five year heads up -- where do you wanna start this what's the top thing.

-- I talk about his income and you really have to know what your source of income is going to be because more mysterious thing is to give up a paycheck.

Mean it's one of the scariest things that that a retiree does this have no longer earning a wage and typically that income come from one -- -- -- Social Security.

A pension or investment income.

But the key is not to be dependent on -- sole income so low income source you have a couple of income sources.

If both spouses are working -- -- they retire at the same time.

I I like seeing -- spouse is retired together because it can cause him just Ford yeah when one has a home.

Hello my daughter yeah and so does every time together they go on trips and -- do those things together go visit grandchildren thing but isn't -- a double whammy in terms of -- can be -- paycheck and are even more important to have a plan right I -- that's why they need to have a plan going into it together.

Okay what are some other tips taxes taxes taxes are huge one because for seniors retirees who were using Social Security of some part of their income.

They get taxed at 32000 dollars on there's just over 32000 -- -- when -- Social Security becomes taxable.

So at Citi around 32.

Thousand dollars dollars Social Security starts to attack at what percent so well depends on how much they are over but it's 50% of their Social Security becomes taxable so.

Forget about -- 450000.

-- levels you -- a hard time.

Financiers who are too worried about Warren Buffett's secretary because they're paying taxes twice right you and I pay taxes on our Social Security as we contribute now.

And many seniors retirees are paying taxes on a later on the getting tax really on the same dollar twice.

And that happens -- just a very low income level.

For -- a couple of 32000 dollars when you advise folks getting ready to retire they surprised by that is that -- -- and in a lot of times I don't see where it is on their tax return but when they see it it bothers them.

They they see that tax coming -- -- -- paying taxes on social security and it really bothers them -- they know that that regarding pay tax on that money once before.

One -- we have a chat and wanted to -- lady writes in his -- and she says how do you save for retirement when you're living from paycheck to paycheck.

-- rising inflation but not rising -- Yet you stop living paycheck to paycheck and I know that's so hard for Americans because we have to look at those things that we view -- necessities.

And decide what we have to -- and and we have very different views on -- but you have to cut something out.

You know you have to -- him.

I think he's even -- there's not even Heidi as you are.

You know we can find something and we can we do in life often when we need that little extra gift for for one of our children.

When we have some it was very important to us we will make the necessary cut but we just don't -- retirement.

As that necessary that is that big of a necessity -- -- o'clock -- so far away I wanna -- -- an emergency surgery -- a four year college tuition bills aren't.

Top -- -- but an emergency happens and somehow we find the money.

So we need to -- retirement as an emergency otherwise we'll be.

All of them with our grandkids in the analysts' first or so you Mac and -- Now you -- -- debt and the united savings.

The next topic here -- investments down pretty product category that's a huge category because there's so many options right but possibly.

There's never been in more polarizing world for retirees to think about as it comes to investments.

I historically low fixed interest rates.

And probably the most incredibly volatile market we've ever seen by and so seniors are forced to choose one extreme to the other two I rest my savings -- -- risk my principal.

We're going to let -- sit -- -- bank at 1%.

And you can see another war with the saying what do I do why -- -- I don't wanna lose my money I don't wanna risk get.

And many have great at Everest and that's out models sub prime mortgage mess the tech sector crashing all of that has hurt.

I am a huge fan of very conservative retirees.

Retirement strategies like.

Fixed indexed annuities whether.

Where -- zero market volatility there -- still participate in some index linked returns.

Without the wrestle for long term savings that's a great strategy.

But but certainly I don't think seniors retirees or even people who retire in the next five years should be gambling a lot of -- money in the market.

That's a tricky topic for a lot of people.

-- -- are very very sensitive subject.

Anything -- mild parent sending that they -- -- there investments some good some bad at all because they're nervous about the fact that they're starting to retire you know.

And and a lot of them Philip sorry I find an educated and -- -- -- States yeah they're -- people don't know where to go and support to find an advisor who works with seniors and retirees in rats literally what.

OK well if you say no but the bottom when you saw a lot of people out there who specialize -- seniors.

And it's such a different time of -- they should have an advisor that does know what's he mentioned retirees need.

We have about a minute left and wanna get through these there point eight health -- the next issue health -- big changes coming up we've just heard some announcements on how Medicare Advantage plans are going to be affected by and 25% of Americans are depending on -- Medicare Advantage programs and so it could go get more expensive and interestingly enough.

I ask clients that -- all the time how many that you would recommend that your child or grandchild.

Become a doctor.

And all of them say no no longer and that's and that's the spirit being so health care is changing for short added estate planning estate planning a big one there are talking about the law we're allowed to represent ourselves and all things legal one of the great things about America.

Unfortunately comes estate planning when it really matters -- debt.

For your incapacitated.

Right so -- an attorney do it don't know what I'm you don't have an attorney can speak for the can speak for your wishes in your desires.

Once -- -- I want Angel at what point nice to get that's set up its image you have children with some as you wanna choose who can raise your children if something happens to you.

You should have an estate plan put in place so.

Clarity plus years yeah where you retire absolutely that's a disaster -- part of me is what -- -- -- -- instead of my kids and planet found here in that family make decisions now for how your family or decisions if -- family let's say.

Your kids wanna live with you want to retire they need to borrow money.

How those conversations with your spouse now so you don't they're gonna answer those questions later also doesn't affect that relationship so dramatically.

Have gone back to the chat now lady right once again -- we did sorry okay.

Up by county it's time to loosen restrictions on for a -- transfers.

I this person Plante has more offerings and they need flexibility for growth at reasonable and -- yeah I.

Couldn't agree more -- pistol in service distributions -- in service -- where you can opt out of your company's plan.

And sweep out the balance -- rollover somewhere where you have more control over that 401K it's still keeps a taxi personals not a taxable event.

But I think workers should have more choices within their retirement accounts because a lot of 401K options people just don't want.

-- -- -- -- -- That people just procrastinate you think that really sums this up because as you're saying all these great point and -- I did my taxes last night.

-- might well in time I felt so overwhelmed I couldn't imagine having to plant that we are out if I can barely get what happened last year.

I know it's just -- put it away if we just -- -- and procrastinators the worst thing he can do it.

Thanks so much that it Ashton with one for the money and -- Your article your website -- screening off have an article on foxbusiness.com.

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