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Well -- hope -- warrants in in Eddie thank you for joining us into this half hour on foxnews.com live.
I -- to say the big board decision -- -- -- see it down 215.
Points for the blue chip average outs.
This is two days in a -- triple digit declines in markets like these make a lot of people really nervous about what's gonna happen to their portfolios and if you.
Think ahead -- golden years -- got a wonder if you're gonna have enough money to sustain.
The longer that we are living -- to life so let's talk about retirement and making sure we're well prepared for a with Matt Kleiza joining handset now.
You are with.
Paradigm group which is financial services company in Denver -- -- remains into our thanks around them and that you know we were talking will.
-- in the break and you say the most common mistake that people make when they're setting up their retirement years is not.
Knowing enough just not having information I think he had a lack of finance education that's one thing but really not paying attention to what.
They're gonna face in retirement especially over 2530 year period and lack of -- plan I'd say lack of financial -- really well.
A lot of people -- -- do have a plan I have my 401K and I've got -- -- 950000.
Dollars and that's for a one -- is man enough.
To get me through -- 2030 years and analyst in retirement he would think so the one of the common mistakes we see a lot of people.
And one of the biggest mistakes they make us how to turn those assets and in -- Lotta people would.
Rather have a million dollars in the portfolio as opposed to 50000 dollars of income for the rest your life.
But taken a million dollars and turning into me and having it last thirty years in retirement is a tough task in retirement it on average I know it's different for everybody depending on where you live how you live -- but how much you really need.
In cash to -- -- -- comfortably well we like to ask our clients especially given to focus on how much after tax income.
Do they need to live adjusted for inflation and to live the lifestyle they want to live and and once we work with that and start to look at what that number is pretty Sarah.
Well -- access Starbucks and no absolutely it's breaking down everything that's gonna happen but once we know that number and the second question we ask is are you want track.
-- if you are what do we have to do to keep you on track but if not.
What does that capital deficiency and what do we need to do what adjustments we didn't they need to make have a successful retirement most part how bitter the adjustments that -- making prayer pull it depends on me the Kleinsasser and comes in and first -- -- we -- -- Social Security -- How much Social Security income are they going to have we look at whether their pensions or other type of income producing or -- come.
Source and then we look at their assets and we then look at what their expenses are what they want to live on and choose and we and we -- to look at their income gap.
And we use those assets we use whether it's managing the assets using product and -- strategies to basic clothes that income gap.
A lot of retirement advisors say that you can definitely -- save 6%.
You need -- 6% matters well a lot of -- we like to challenge conventional wisdom.
I mean they've also said that if -- -- 10% of your income.
-- it's always going to be turned 8% and that's enough money that's gonna last you for retirement and you know that can be a bit of a gamble sometimes it's certainly up for debate.
You said you're looking at you know Social Security news.
Next coming and -- So this might be.
Things in the past sesame fast -- in time how concerned are you about.
Those traditional sources as well I'm not does that concern for for the generation that's retiring now now.
But the next wave a generational.
Definitely be impacted -- so again.
With the shift to retirement -- squarely on the individual's shoulders -- with the reduction of pension plans and those type of things.
Is that it's really really good people that they can start to educate themselves.
-- -- to look at retirement as opposed to accumulation -- look at it from how much income in my gonna have retirements not a moment in time.
It's a process and how many times yeah order sentry and then -- and when you think about it if you focus on accumulation you get there.
Well that's when the hard part starts because when you get to retirement you have to deal with things like inflation and taxes and health care costs.
How -- classes -- been -- a big ones most I would say that's probably one of the biggest mistakes that people are making.
That the underestimation of out of pocket health care costs that.
Inflating at 8910%.
Those are real dollars didn't have to pull from their assets out of a product as how -- talks about ten.
Could get 10% year to the 300000.
Dollars a year if that's what they estimate.
The average retirement.
Couple at 65 years old.
He's going to need.
To cover their expenses and -- A couple up to 300000.
To cover the health care expenses and went home absolutely so if you think about that -- astronaut.
That's the press room and means you wrote on his thinking on my grandparents -- team.
Here indicated at a -- that I -- Moving well it did not only adds up but then you factor in taxes yes let.
You factor in market volatility if your assets are in the market and you factor in inflation.
And with what's going on in the headwinds we faced right down retirement with.
Fiscal train wreck that our country has plus the fact that.
We've got easy monetary policy these -- all headwinds.
That are retiree has to face that they don't deal with while their accumulated money.
So I guess the obvious and easiest question to ask in the hardest cancer is if -- let's say in your twenties and thirties and forties.
So retirement seems so -- -- when needed.
I may say more when the cost of living he's going up that's that can mural that's the hard part I mean you know stop the USDA put out a report today saying that raise -- child not including -- -- half an Iranian.
Dollars when you start to look at it -- and -- and then if you start to look at it in those terms and starts to.
And be a daunting task -- and look at it like it you're gonna save every year and we like to basically work with our clients and educate them that.
Let's look at it sort of accumulating the most money.
Let's start to look at it how to replace your incomes they can move a lifestyle that you want to live and if you start to focus on that you think about as income.
We have our clients tend to save more -- -- and it I think it's excellent I think so this stuff sounds like again well done.
That's actually that's -- financial education I think is -- -- financial success.
But -- I I have a financial education my filly and no more than the average person yet the way that set myself up I don't think kids.
Stellar -- to -- exemplary play any means what's interesting about that is where you get your financial information is critical to who.
So where you get it from and who you get it from us that's why -- trusted advisors always works well right right it -- Stay here is always being told that you need to -- war in that's.
In this sport events and at the end of the day unemployment near 8% who.
Tens of millions are out of jobs or working part time and while these are sound concepts.
And things that we should perhaps hope for the reality is it's hard people.
It is and it's only gonna get harder so if the responsibility for your retirement.
Is on you and the first thing you should do is educate yourself and you -- and that -- life it's our entire -- -- it's on us and the important thing is.
Educate yourself and understand that there's different concepts and strategies that you can use.
You just don't have to take 10% of your money thrown a qualified plan hope the market gets returned and you're gonna have enough to retire on.
There are different concepts and strategy is out there that you can take advantage -- there's a lot of financial innovation going on.
And with those type of things and working with advisors who look at the whole universe of things you can put together pretty good plan.
Matt -- thank you so much you well thank you for coming in and being with us thanks he wrote an article on this it will be up on foxbusiness.com.
Momentarily we appreciate your time.
They and their perspective we're going to have gratefully back right -- this.
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