A financial advisor explains what you need to know just before you retire
So, is 2025 the year you plan to retire? Well, don't strut your boss's office yet. Until we received advice from Catherine McCall, Captrust's vice president and financial advisor. And you joined us this morning. I'm happy to be here. Thank you for being here. So what factors should people consider first before starting Moonwalk from there? that's right. If you're in that final countdown mode, I'll start thinking about four things. First of all, what are we going to use? How much will you bring in in terms of income? What are we going to do with taxes? Even if you're not working, you'll always have to pay those taxes. sorry. And how are we going to spend our time? They are all important. That's something I love to reflect on. So, how do you know if you use numbers, at least in your own portfolio? A huge budget fan. Let's start there. I'll take it to you. No, not at all. This is very new. Start with your budget. Understand how much you're going to spend on your bare bone budget, then get your funding budget. I like to make sure all budget numbers are combined. In support of that, we understand our revenue streams. So let's say you know that on average you spend $10,000 a month during your retirement. You've made your number. wonderful. Now we know how much money we accept. So social security, perhaps pensions, perhaps rental income. They all combine to figure out what your bond is. That's what you're elderly now. You have bonds, you're right. The difference between these two numbers is that $10,000 is your spending. $6,000 will correct your income level. That's what I get every month. There's a $4,000 shortfall. Yeah. Really basic mathematics. This is a very unsleek way to see this. But if you're taking $4,000 a month, multiply that by 12. There is a $48,000 shortfall per year. This means your portfolio needs to come up with $48,000 each year to achieve a safe withdrawal rate. It's 4% basic math. You'll need $1.2 million to retire. Ok, I understand. But as soon as you come up with that $4,000, you still need to consider savings, right? Now, it's how much you can save you. You need to understand that you have the right amount at that time. So, if you know your shortfall is $4,000, is your account worth $1.2 million? That's where we have to do. Understood. Before you start from there, you need to know, do I have enough money? right. And from there we need to make sure we have something like the tax is grasped, right? Yeah. And like you said, they're not going anywhere. I'm not going anywhere. One of the big strategies you work with financial advisors is to understand how you will take different buckets at different points during your retirement. Don't forget we have pre-tax money. If you save on 401 K, you can make Loss money. This will make the best bucket of money. But if you want to do that, you know that bucket list travel, it's $50,000 or something really bad for a new car or spending. It won't blow up your tax limit. And again, when you just touch, you want to be able to enjoy too. Therefore, you need to make a budget for that. That part of life. That's right. Listen, people hate retirement. They don't find fulfillment when they retire. Very good point. Three major aspects to that. You need to make sure you are physically exercising every day. Keep moving your body to the right. We don't want to get older and get older, right? Social engagement is really important. You really feel like you're part of a community. Highly recommended to new clients preparing to retire. Find a charity you like to volunteer with, or something that brings a kind of joy to your spirit, then make sure you have that social interaction. And a lot of research says that if you are caring for your grandchildren, or if you are spending time with people much younger than you, you will live longer. You're the person you're hanging out with, right? That's right. Okay. Catherine
A financial advisor explains what you need to know just before you retire
Updated: 3:23pm PST February 19, 2025
Are you planning to retire in 2025? Well, don't get caught in your boss' office yet. McCall: “If you're in that final countdown mode, I'll start thinking about four things. First of all, what are we going to spend? How much do we have in terms of income? What do we do Are you going to do it? With tax, how do we spend time? Think about how much we spend on the naked bone budget, then get a fun budget on the side. I've got these numbers We want to make sure everything is combined together so we can really know what you are really using. In support of that, we are going to get a grasp of our income stream. During retirement Let's say you know you spend an average of $10,000 a month. Now, we know how much money we accept. So Social Security, perhaps pensions, maybe rental income. All of them are your bonds Join to figure out what it is. Let's say $10,000 is your spending. $6,000 has an income level. There's a $4,000 shortfall. If you take $4,000 a month, and it's 12 times, you'll have a $48,000 shortfall. That means your portfolio will have a 4% safe withdrawal You have to come up with $48,000 each year to become a rate. Basic math, you need $1.2 million to retire. If you know your shortfall is $4,000, your account Is it worth $1.2 million?” What about taxes? McCall: “One big strategy we work with is to understand how you take out different buckets of money at different points during your retirement. If you're saving on 401(k), There's pre-tax money. We may have lost money that will become the best bucket of money. If you want to go on a $50,000 bucket list trip, or if you want to buy something very bad for a new car or spend, don't blow up your tax bracket. “I also want to budget for what you enjoy, but McCall: “Yes. People hate retirements that don't find fulfillment during retirement. So I have three big aspects to it. You need to make sure you exercise every day. Social engagement is really important. I strongly recommend that new clients preparing to retire find charities you love volunteering and things that bring joy to your spirit. I recommend. Also make sure you have that social interaction. ” Find out more about California Top Stories here | Download the App | Subscribe to our Morning Newsletter | Find us here and subscribe to our channel
Are you planning to retire in 2025? Well, don't strut your boss's office yet.
Kathryn McCall, vice president and financial advisor at Captrust, categorizes several things before submitting a smoking ban.
What factors should people consider first?
McCall: “If you're in that final countdown mode, I'll start thinking about four things. First of all, what are we going to spend? How much do we have in terms of income? What do we do Are you planning on it? With tax?
How do you know if your spending number is viable in your portfolio?
McCall: “So, big budget fans, let's start from there. Think about how much you'll spend on a bare bone budget, then get a fun budget on the side. Combine everything and you'll be able to do it I know to grasp the source of income's. I'm going to figure out how much money we have, so Social Security, perhaps you'll get to figure out what your bond is about, a $4,000 shortfall. That's 4%. If you know your shortfall is $4,000, you will need to retire $1.2 million.
How about taxes?
McCall: “One of the big strategies we work with financial advisors is to figure out how to steal different buckets at different points when we retire. (k) We're buckets for $50,000. If you want to travel lists, or if you want to buy something really bad, you may have Ross money. You have the right to pull from it, a bucket of money will not blow up your tax frame.”
I would also like to budget for what I enjoy.
McCall: “Yes. People hate retirements that don't find fulfillment in retirement. So I have three big aspects to it. You need to make sure you exercise every day. Social engagement is really important. New clients preparing to retire will bring joy to charities you like to volunteer, and to your spirit.”
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