How to Make a Retirement Income Plan 2024

How much do you need to retire? Where will your retirement paycheck come from each year?
In this class, we’ll illustrate what a detailed retirement income plan looks like using a series of timelines to chart your future income, expenses and account withdrawals. You’ll learn what it takes to create a crystal-clear picture of your future retirement income.
Topics we’ll cover:
• How to make a retirement budget and the most commonly overlooked expenses
• What a future income timeline looks like
• How to calculate the amount you’ll need to withdraw each year
• Mistakes people make with assumptions about inflation and rates of return
• How to see if your retirement money will last
0:00 - Intro
6:00 - Part I Income
13:10 - Part II Spending
20:46 - Part III The Gap
29:35 - Part IV Investments
37:15 - Q & A
DISCLOSURES
This presentation contains general information that is not suitable for everyone and was prepared for informational purposes only. Nothing contained herein should be construed as a solicitation to buy or sell any security or as an offer to provide investment advice.
Sensible Money, LLC (“SM” or "the Firm") is a registered investment adviser. Registration is a legal requirement - it does not imply approval or endorsement. For additional information about SM, including its services and fees, you can request a copy of SM’s disclosure brochure by emailing us at [e-mail] or visit www.advisorinfo.sec.gov.
Any charts in the presentation are not meant to show the performance of SM strategies or to imply the performance of any model portfolios. Any charts or examples are meant to show the Firm’s belief in sticking to a plan over time, but there is no guarantee that you will have the same or positive results. Any results portrayed in these cases or examples are not representative of all of SM’s clients or the clients’ experiences. No portion of this presentation should be interpreted as a testimonial or endorsement of SM’s investment advisory services.
Past performance is not a guarantee of future results. When investing, depending on your timing, you could lose money. There is no guarantee that the prevailing market and economic conditions during the time frames in the graphs will continue, and performance may be negatively impacted by a shift in such conditions.

[@stevemathews684]

Thank you Dana for this detailed information and for patiently answering all the questions, even the redundant ones. I've read your book and this filled in some of the gaps for me - especially regarding the 'bond ladder' concept. Thanks also to Nancy for carefully articulating the many questions and keeping the webinar moving along smoothly.

[@Sensiblemoney]

Note - our fundeness calculation shown in this webinar is using a 29-year time horizon. On a different slide, we show a calculated minimum required return of .38% - this was inadvertently calculated on a 21-year time horizon. If the minimum return had been calculated based on 29 years, it would have been approximately 2.82%. Thank you to an external financial planner for backing into these numbers and asking about the discrepancy he was coming up with!

[@Jl-620]

Thank you for the great information! . Please note that this time the screen being shared was smaller than usual and a bit blurry, making it difficult to follow what you were trying to describe. Previous webinars it was much larger so it seems that something changed.

[@chukwubuikemoguagha]

Hey Sensible Money, your video is full of useful information and I can see a lot of potential in your channel but there are a few areas where some tweaks could really help your channel grow even faster.
1. Enhance the video editing for a smoother viewing experience.
2. Strengthen channel content with better ideas.
3. Improve discoverability through strategic measures.
4. Increase audience retention rate for sustained viewership.
Lets talk!

[@Jl-620]

To calculate the taxes on the withdrawal amounts from the taxable brokerage account, do you use the details on what assets/funds you sell each year bases on their bases, or do you just use the average overall basis on that account?

[@Sensiblemoney]

We use an estimate based on the composition of the holdings - so generally there are dividends, qualified dividends, taxable interest, sometimes municipal bond interest, gain distributions from mutual funds (but less gain distribution from ETFs) and then actual realized gains if we sell something. For this particular webinar sample, we assumed in year 1, there was $4,588 of ordinary interest and dividends, $6,423 of qualified dividends, and long-term capital gains. But for real clients, it is adjusted based on their portfolio composition and an estimate of what and how much realized gains there may be in the current year - and much looser estimates for future years.

[@Jl-620]

Thank you, and thanks again for the very informative webinars!

[@cceerr11]

What are your thoughts on the paid version of New Retirement planner?

[@Sensiblemoney]

We haven't put any plans through it lately - but overall, their tool is fabulous and likely the paid version has additional functionality that may be useful.