Is your savings rate good or bad?
Play episode · 49 min

Do you have a good savings rate? What is a good savings rate anyway? In this episode, learn why a high savings rate is so critical — and how to secure one for yourself.

 

In today’s episode, you'll find out:

 

  • How do you define a savings rate?
  • The history of savings rates in the U.S.
  • How advertisements might have affected savings rates
  • Where the current average national savings rate has settled
  • How having six figures of student loan debt should affect your savings rate
  • The saving statistics of the Student Loan Planner audience
  • Our recommended savings rate
  • How savings rates affect taking risks or changing your situation
  • What a savings rate can get you in terms of retirement
  • Five ways to fix a bad savings rate
  • Why a savings rate is more important than a student loan strategy
  • How to start saving with a better rate
  • Why avoiding money paralysis is imperative
  • Why considering a fee-only fiduciary financial planner is wise

 

Full show notes at: http://studentloanplanner.com/35

Retirement Starts Today Radio
Retirement Starts Today Radio
Benjamin Brandt CFP®, RICP®
How to Avoid Burnout While Working From Home, Ep # 162
Are you one of the many people still working from home due to the pandemic? What seemed like a phase that would last a few weeks has turned into a trend with no end in sight. While working from home creates exciting possibilities, especially for those considering retirement, it also has its downfalls. Many people have discovered that working from home means the lines between work life and home life are being erased. As long as you are conscious that burnout is a real risk then you can take active steps to keep your home life and work life in balance. On this episode, I’ll share an Inc. magazine article about avoiding burnout while working from home. We’ll also take a look at a WSJ article on early retirement buyouts. Then we’ll wrap up this episode with a listener question about strategies for those on the cusp of retirement. So, grab your Airpods or your favorite listening device and take a walk with me. Outline of This Episode * [1:02] How to avoid burnout while working remotely * [6:30] Should you consider early retirement? * [11:55] Are there any one-time financial strategies for those on the cusp of retirement? Is working from home leading you to burnout? While the work from home revolution that picked up momentum during the pandemic has opened many doors, it has also revealed its own set of problems. People spend more time actively working and it seems that the 40-hour workweek has gone out of the window. Employees are now spending 25% more time ‘at work’ than before the pandemic. Many have stated that they find they are often sending work-related messages and emails after traditional work hours. Their desire to be productive now puts them at risk of burnout. Try taking a virtual commute Microsoft has come up with a creative way to help its team avoid burnout while working remotely. Their solution is to bring back the commute. They don’t recommend you jump in the car and drive to your workplace, but rather a virtual commute. The Inc. article recommends a 20-minute meditation commute. I love this idea. However, if you are not a meditator, a walk to work commute might be a better alternative. Before you start working each morning, head out your front door, and walk around the block. You can use this time to get in the right headspace for work and plan your day. Working from home could extend your working life Working from home can create amazing possibilities, especially for those of you considering retirement. The possibility of working from anywhere means that you could extend your work timeline. However, to take full advantage of the possibilities it is imperative to avoid burnout. As long as you are conscious that burnout is a real risk then you can take active steps to keep your home/work life in balance. Have you been offered an early retirement package? Press play and listen in to hear whether you should consider taking an early retirement package. And keep listening until the end to hear the answer to Frank’s question about one-time financial strategies for those on the cusp of retirement. Resources & People Mentioned * Inc magazine article on the virtual commute * WSJ article on early retirement buyouts Connect with Benjamin Brandt * Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ * Follow Ben on Twitter:https://twitter.com/retiremeasap Subscribe to Retirement Starts Today on Apple Podcasts,Stitcher,TuneIn,Podbean,Player FM,iHeart, or Spotify
18 min
Retirement Answer Man
Retirement Answer Man
Roger Whitney, CFP®, CIMA®, RMA, CPWA®, AIF®
Unexpected Retirement: Annie Duke on How to Decide
Retirement brings an onslaught of life-changing choices, so one thing you can do to help you rock retirement is to become a better decision-maker. If you are wondering how you can do that, then you’ll want to listen to this interview with Annie Duke. Annie Duke is the author of Thinking in Bets and she just released a new book called How to Decide. She knows that people can improve the quality of their decisions and she’s here to teach us how. Press play to learn how you can make better decisions so that you can rock your retirement. There are 2 things that create a great life There are only 2 things that determine the way your life turns out: luck and the quality of your decisions. You don’t have any control over the luck part, but you do have control over the quality of your decisions. It is important to acknowledge that luck has a role to play in the quality of your life. Once you have come to terms with that then you can focus on improving the quality of your decisions. Decisions are made with incomplete information Unfortunately, this isn’t a perfect world where you have all the information needed to choose wisely. There are so many unknown factors that affect your choices, so how can you possibly choose correctly? Uncertainty, luck, and imperfect information all impact our decisions. But rather than being paralyzed by these factors, you can use probability to help you. Think about how you can get more information. Most of the time we are making our decisions behind a veil of ignorance. This is why it is so important to ask questions. When you ask you are doing something, you are improving your data set. Gain some information but don’t become overwhelmed with information overload. Set some parameters to help guide you in your decision making. Have you defined your values and goals? Before making any major life choices you’ll want to have a clear understanding of your values and your goals. Having well-defined values and goals can help you choose. Think about how positive or negative results of your decisions will move you toward your goals. Don’t just go with your gut So many people use their guts to make decisions, but the gut is not the right tool to use. You can’t measure it. You want to make sure that you use a process, strategy, and tactics to help you decide. It’s also important to examine your decision making by going back and reflecting on your decisions. Learn why this is so important in this interview with Annie Duke. If listening to this episode wasn’t enough and you want to learn more about making better decisions, then make sure you’re signed up for the 6 Shot Saturday newsletter to receive a free chapter of Annie’s new book, How to Decide. You’ll also get an invite for the webinar taking place on October 29 at 7 pm CDT. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN PRACTICAL PLANNING SEGMENT * [3:32] There are 2 things that create a great life * [6:02] Are high stakes decisions more important than smaller decisions? * [12:50] How we judge decisions * [21:37] Don’t just go with your gut * [27:40] What hindsight can teach us * [33:48] A thought experiment * [44:23] Use decision tools to help you TODAY’S SMART SPRINT SEGMENT * [48:03] Sign up for 6-Shot Saturday to get a FREE chapter of How to Decide Resources Mentioned In This Episode BOOK - How to Decide by Annie Duke BOOK - Thinking in Bets by Annie Duke Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement by Roger Whitney Work with Roger Roger’s Retirement Learning Center
50 min
The Power Of Zero Show
The Power Of Zero Show
David McKnight
The Post-Mortem on Trump's First Term
Today’s podcast is based on a recent article penned by Maya MacGuineas titled The Debt is Huge Because Trump Kept His Promises. Maya also appeared in David’s documentary The Tax Train is Coming. Much of what Maya says is that we shouldn’t be surprised by what happened during Trump’s first term since it has been exactly what he campaigned on. The debt that has accumulated has been a result of President Trump’s campaign promises of steep tax cuts and increased spending on both defense and veterans, and crucially, he promised to not make any changes to Social Security and MediCare. We are now paying the price for it. The numbers proposed were so huge that they seemed exaggerated and improbable, in other words, the amount of debt that Trump was looking to accumulate over the course of his first term was astronomical. The Nonpartisan Committee for a Responsible Federal Budget estimated that Trump’s agenda would increase deficits over the next ten years by $4.6 trillion. The numbers at the end of Trump’s first term are even worse due to the extra spending for the Covid-19 lockdown. In Trump’s first three years he approved $3.9 trillion in borrowing just to pay for the tax cuts he introduced. Any good economist will agree that tax cuts are okay if they are paired with a commensurate decrease in spending, the problem is we didn’t do that. While all the other economies in the world are paying down their debts, the US is piling debt upon debt. The deficit has never been so high when coupled with an economy that was going as well as it was prior to 2019. When you add up the additional borrowing that the US made to deal with Covid-19 the impact is immense, and the borrowing is just beginning. The $2 trillion borrowed initially was only the first half of the bridge. Had we been more fiscally responsible prior to Covid-19 we would not be in the same bind. We would be in a better position to handle something like Covid-19 had we not accumulated so much debt prior to it. There are a few things that Trump did not follow through on. The business tax cuts have not paid for themselves. Trickle-down economics is the idea that decreased taxes and increased capital going to corporations leads to an increase in the economy, but that would only happen with a concurrent decrease in spending, which did not happen in this situation. Discretionary spending is a relatively small portion of the budget, roughly 23% of the economy, and while Trump proposed reducing discretionary spending it actually increased by over $700 billion. Part of the problem is that Trump ran on not touching Social Security or Medicare and every year that goes by where we do not reform Social Security or Medicare in some way has an economic cost. Every year that goes by where we fail to address these two programs means the fix on the backend is going to become even larger and even more draconian. According to the CBO Social Security is projected to be insolvent by 2031 when the youngest of today’s retirees turn 73. Ignoring these programs is not the same as protecting them. It dooms beneficiaries to large abrupt benefit cuts across the board or large tax increases on the population as a whole. The debt is headed towards a new record, in just a couple of years, it is projected to grow faster than the economy indefinitely. All major trust funds are heading towards insolvency because we have done nothing to fix them. All of the Covid-19 spending would have been more palatable as we come into the crisis with our fiscal house in order. Whoever is in the White House in January is going to have to put a long-term plan in place to reduce the debt once the economy is strong enough and save Social Security and Medicare. The scary part is that we are starting to hear more about Modern Monetary Theory and the idea that we can just print our way out of our issues without creating immense amounts of inflation. Take advantage of tax rates while they are historically low because they are not going to stay at these levels for long. Mentioned in this Episode: The debt is huge because Trump kept his promises - https://www.washingtonpost.com/opinions/2020/10/05/debt-is-huge-because-trump-kept-his-promises/
19 min
Money! with Stacy Johnson
Money! with Stacy Johnson
MoneyTalksNews.com
How to Pick the Perfect Financial Advisor feat. Pam Kruger
Back in the 80s and early 90s, I was an investment advisor, and later supervised other advisors, for three major Wall Street firms. When I worked in that business, there were advisors you'd love to have in your corner and others that would ruin your financial life without giving it a second thought. While that was a long time ago, I doubt much has changed. Finding the right financial advisor can be the difference between retiring rich and never retiring and all. So how do you find the right expert? That's the topic of this week's "Money" podcast ( https://radiopublic.com/money-6rRgm9/episodes ). As usual, I share the broadcast booth with longtime financial journalist and fellow podcaster Miranda Marquit ( https://www.moneytalksnews.com/author/mirandamarquit/ ). And this week, we'll also have a special guest: Pam Kruger, CEO of Wealthramp ( https://wealthramp.com/ ) , a financial advisor matching service. If her name sounds familiar, that may be because she also hosted the popular PBS series MoneyTrack ( https://moneytrack.org/ ). I've known Pam for 30 years. Trust me, you're going to learn something valuable. So sit back, relax and give it a listen! *Links* : * Is Your Financial Adviser a Crook? Here's How to Find Out ( https://www.moneytalksnews.com/another-reason-take-hard-look-your-financial-adviser/ ) * How to Find Your Perfect Financial Adviser ( https://www.moneytalksnews.com/solutions/wealthramp/ ) * Do I Need a Financial Adviser, or Can I Manage My Money Myself? ( https://www.moneytalksnews.com/ask-stacy-need-financial-adviser-can-manage-money-myself/ ) Hosts: * MoneyTalksNews ( https://www.moneytalksnews.com/ ) * MirandaMarquit.com ( https://mirandamarquit.com/ ) Ask us a question ( https://www.moneytalksnews.com/contact/ ) Support this podcast at — https://redcircle.com/money/donations Advertising Inquiries: https://redcircle.com/brands
38 min
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