5 Retirement Myths

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We have some great goals lined up taking your live calls today because we are pre-recorded.

This is moneywise live biblical wisdom. Today's financial decision.

The idea that the withdrawal rate you anticipate for your savings in retirement is a set it and forget it kind of thing. The fact is so much can happen between now and the day you quit working that it's prudent to revisit your calculation periodically, will you stick with the 4% rule of thumb. That's the amount of annual withdrawal advisors have recommended for decades on the assumption that a properly diversified portfolio could last 30 years with that level of withdrawal. That's assuming your portfolio continues to gain enough to offset inflation. If you've already retired or are about to you want to get with your advisors regularly to review your anticipated withdrawal rate you will take into account how stock prices and inflation may impact your returns. You may have to make adjustments to your retirement income now younger folks might want to go with a safer withdrawal rate of 3 to 4%, but it could be higher if you faithfully contribute 10 to 15% of your income to your retirement plan. Again, meeting with your advisor will help you set up a strategy that meets your goals and needs that the second retirement myth that we need to dispel is that Medicare will cover all of your healthcare costs. It's a very helpful program for many retirees, but was never intended to cover 100% of healthcare costs, deductibles and copayments can be high.

Medicare doesn't cover dental, vision and hearing conditions. So you need to factor in the cost of a Medigap policy or a Medicare advantage plan from a private company to supplement Medicare that will cover the cost for Medicare parts A, B, C, but you also want to add part D coverage for prescriptions okay. Our next retirement myth is that the Social Security program will collapse and not be there for you when you retire while the program definitely has solvency issues that need to be faced. If you're in or nearing retirement.

They're not likely to affect you. It's now estimated that without changes. Social Security's financial reserves will be able to pay full benefits until 2034 that that point. Benefits would have to be decreased by about 25% but will that actually happened, it's far more likely that Congress will overcome gridlock and implement steps to correct the problem either by increasing payroll taxes or raising the full retirement age or perhaps both. But keep in mind that Social Security was only designed to cover about 40% of your retirement income.

That's why it's vitally important that you begin early and save as much as you can to provide the other 60%.

If your employer offers a 401(k) plan that contribute enough to get the maximum match, then put additional funds into a Roth IRA where your withdrawals later will be tax-free are the next retirement myth is that you can simply keep working as long as you need to. The facts don't support this in the coated pandemic is a case in point. A recent survey showed that 7% of those responding retired earlier than expected due to the pandemic. Another 11% say they now plan to retire sooner than expected, and here are two more surprising statistics. Listen to this nearly 25% of people in their 20s will become disabled before reaching full retirement age of 67 and nearly 70% of people over 65 will need long-term care at some point during retirement. The point is you have to plan on not being able to work as long as you'd like. Now the last retirement myth is that you will simply alter your lifestyle in retirement so that you don't run out of money but not that it's wrong to do that. It's actually quite wise, but you may not find it as easy as you think, for several reasons. You have more time on your hands, which can lead to overspending. There's a temptation to take more trips, especially if you have family out of town. You may want to pursue a hobby that leads to unplanned spending.

Then there's inflation which Ronald Reagan once called the cruelest tax of all right now the Fed is predicting 2% annual inflation. Several years into the future that might not seem like much but remember there's a compounding rate so it adds up over time right there you have it.

Five retirement myths. Be sure to connect with your advisor to develop a plan for you. Today's program is prerecorded, so keep that in mind when you hear phone numbers were going to pause for a brief break now, but Rob West will be back in a moment with more moneywise live back to moneywise live on Rob West. This is where God's word intersects with your financial life along with us today for our team is taking some time off today. This program is prerecorded, so don't call in today. Wait till we live in the studio but we do have some great calls all lined up ready for you today. I'm sure you'll enjoy them. We started today by talking about some retirement myths and that line of thinking was our question of the day on Facebook. The question was what you think is the greatest myth about retirement. Robert said that being idle is fulfilling is a myth.

I couldn't agree more. In fact, studies indicate that being idle. Not having a purpose in living out your calling see single productive activities.

Not good for your health, that God designed us to be productive and so it stands to reason Anna said the myth that is the greatest in her mind is that retirement homes are inexpensive and boy that's true today more than ever with the housing prices where they are now continuing to move higher up perhaps as an opportunity to pull some equity off the table and downsize maybe moved to a more rural location, but the homes are expensive, that's for sure and then cautious said the greatest retirement myth is that retirement even exists in God's economy. And I like that line of thinking you know we talk often about retirement, but I take a completely different approach than the world does in the sense that you won't see this idea. Retirement in the Bible apart from the Levitical priests but keep in mind as I said a moment ago God created us to be productive. We were workers before the fall.

So were to take God's creation and improvement in the calling that he's placed on our lives to be in service to him.

Well, it doesn't have an expiration date, so retirement is not as the world would presented in the sense that we accumulate as much as we can so we can live a life of leisure. It's really about accumulating perhaps more than we need to spend today setting a portion of that aside so that when the day comes where perhaps were no longer able to work and I would refer you back to some of the statistics I cited a moment ago about 70% of Americans over age 65 meeting long-term care and the number that will become disabled and unable to work, we need to take a portion of what were receiving today from God's provision and set it aside so that we we can't work. We have the ability to provide for ourselves, but that doesn't mean we're just walking the beach aimlessly picking up shells were continuing to ask God, what's my next assignment. Even if were transitioning out of full-time paid work and so it's really a conversation between us and God.

To say what what you have for me in this next season of life and keep in mind when we reach those golden years. Well, that's what we have the most wisdom and experience to use in God's service. So let's save diligently. But let's do it with a mindset toward serving the Lord in living out his purposes for our lives throughout the whole of our life until he calls us home. All right, let's get to your questions and calls today to begin today in Cleveland, Ohio Sharon, thank you for calling.

How can help you warm financial planner for recount and they are charging for a current long-range comprehension plan and then after that it my portfolio is reasonable that normal. Yes it is. So when it comes to a certified financial planner, providing a comprehensive plan which they're trained to do, as evidenced by the CFP designation that's going to cover all of the major areas basics of retirement planning, investment planning, retirement savings and income planning should touch on tax and estate planning risk management and insurance and then also if necessary. Education planning so that comprehensive plan would typically be charged on an hourly basis based on the needs that you have than the complexity of the plan to be delivered not just so you get a big binder that sits on a shelf somewhere, but so that you have somebody looking at really the whole landscape of your finances to help you plot a course that is clearly going to change over time but it's going to be a really instrumental document to make sure that you're addressing all of the needed areas financially. In addition to that, though the same professional, or perhaps another one.

It just depends on their competencies would typically handle investments separately and that is most commonly today charged as a fee, which is a percentage of the assets that are under management. So not uncommon at all for those to be charged separately and the great thing about paying for a financial plan on an hourly basis is if you don't choose to have that professional manage your money because you're paying him or her for their time and expertise.

Then there's not any inherent bias. They're not trying to sell you anything. They're just giving you a plan and their recommendations and thoughts on your current situation for their time and that should be aligned very well with your priorities now. The reason we recommend.

In addition to CFP, CK, a certified kingdom advisor is because we want that person to have a biblical viewpoint. If I share just a moment ago, Sharon really a look a worldview of retirement, at least from my perspective and I would want your advisor to share God's heart as it relates to how you approach accumulation in lifestyle and giving all of these areas really running them through a biblical worldview. But to answer your question, that's not unexpected, and I think it's actually quite quite normal.

How you're being charged. Do you have any further questions or they are charging right now in light we would leave him approximately four times over the course of this as you indicated it would tell us that like the best time to take the security and auditing based on all of our affect income and then after that, you know, our portfolio and investment advice. It gave a charge of encouragement for the management there. Yes, and the flat rates again would be very customary.

It would be based on their estimate of how long it would take, but yet I would expect that flat rate.

This is very customary is that. Are they saying that it's required that you use them for the investment management or could you just do the mall after we take a look at the plant. Okay, we don't want to, you know have an association with you. You know then we went to have the plan they would have there for me and we can move on black. You know your buyer is correct to become a long-term customer so that they would manage all of our aunt and consumer to get well and clearly during the planning process, you have the chance to get to know the organization. The company as well as the individual advisor or advisors you're working with and hopefully develop a rapport that would then lead to investment management but I think that sounds like a good plan, actually, and I encourage just about everyone to seek out a financial professional to have the kind of plan done that you're describing a comprehensive basis so we appreciate your call today. Sharon to round rock, Texas, Nancy, thanks for your call today. How can we help out talking about 18 I do not single and know that other than my home right now I have just a small balance that out on my home 36,000 and wondering what the market booming right now and my home being triple in value as this time to say hello. I'm just finding classes. Nancy, let me ask you how how is your budget and maybe this is where you are going to go next.

Are you having trouble keeping the bills pay making ends meet. Right now my home at 15 alum Brandon into appliances that need to be replaced.

How do I keep up with car maintenance, medical co-pay and things like that.

I'm managing but very little left over.

Yes.

Okay. And how much equity do you have in the right now that I think from my purchase amount and what's owed or know you can sell it for. Realistically nice balance on your mortgage so I think it could sell for 254 and 36 was what I thought about 2002 2090 and 20,000 okay and so you believe that if you were to find something let's say you after the expenses that you incur on the sale and then the purchase.

Let's say you bought something for 200,000, which eliminated your mortgage. Would that help you to balance the budget, or would you still have a shortfall depends on what position I would be at the point of move and I thought about promptly. Maybe buying a house with my daughter but I don't know if that's a good idea children she still racing and I could be of help with them but I'm probably not thinking that through completely sure, but here's what I would say I mean clearly the housing market is sky high right now and so I suspect you. Looking at the number that you believe you could get in think and thinking wow that's a lot of money in it. Keep in mind you'd have the same issue in the home. You tried to buy on the other side so you're going to pay top dollar for those home so I would just want you to make sure that you visit with a realtor is probably your next call to see what you can realistically get out of this kernel and see what it's gonna take to buy. On the other side. Realistically run the numbers and see how that budget comes out sample I will talk tomorrow here right back to moneywise.

Eventually along with us today just before the break we were talking with the caller who is really processing trying to make ends meet in retirement. She's seeing her home rise significantly in value. Like most homes are around the country and thinking about an opportunity to either downsize to something smaller, perhaps eliminating the mortgage and/or moving in and buying something with her daughter who has small children off the year we were just saying your number one she needs to connect with a realtor who can really help her evaluate what is she truly going to net from the sale based on comps and factoring in the expenses associated with selling it.

What can she buy because she's gonna sell for top dollar, but also by for top dollar.

So what can she buy that would really meet her needs and eliminate the mortgage and is that possible, and then we gotta make all the numbers work before were going to proceed with something major like this. We also talked at length about her needing to really pray and think through moving in with her daughter just to make sure they're both going into that with their eyes wide open and make sure that's can be a positive thing relationally but appreciate the call very much and hope that was helpful to you, but let's head to Norfork Nebraska. Ron, thank you for your patience.

I can help you sir some have money in my 401(k) and bed here okay to talk about the stock market cracking and think about retiring here in the near future.

Was wondering if I should take money out of 401(k) and by gold or take the money out of the stocks and bonds and just put it in in cash.

Don't just let the girl like you know 2% interest.

Or, you can't lose with the stock market crashes or appreciate that question Ron and obviously we got some headwinds against us and delivered as of late about inflation turning up the Federal Reserve says that's transitory, which is there in their language that just means it's short-lived, as the economy reopens and we get the supply chains in this country working again.

You were going to have a period of time here where demand is going to exceed supply and that is basic economics and causes prices to be driven higher. But as we get fully functioning and opened again as a country. They believe that a work its way through the system and they'll be able to keep inflation pegged at that 2% target and if they can do that although that's meaningful over time because it compounds that's realistic. The consumer's very strong corporate earnings are very strong. We got a lot of debt. No doubt about it.

We been spending incredibly in this country, in part, for good reason to stimulate the economy. The problem is the decade before that when the economy was very good.

We continue to spend in that way as well. And there's got to be a reckoning were working a need to address the growing and mounting debt in this country I believe will do it.

We have a history of making smart choices when we have to.

And I don't think were heading for a debt crisis anytime soon, but it's something that's going to have to be addressed in my view, Ron. It's not a time to go to cash and it's not a time to highly concentrated in other precious metals. Your gold has a terrible historical return long term.

When you compare it to other asset classes tends to be more volatile that something you don't want to do well because it means everything else is doing poorly. But it's it is a store of value, but it only earns money when you sell it, which means that it doesn't provide any income, and it's going to be difficult if we got into real hard times to use it know in any way that's actually productive so I also don't like going to cash because of the Lord Terry's and you have good health. You need this money to last for decades. So I think the answer is to still believe in the long-term success of the market vis-à-vis the strength of the US economy long-term. You want to make sure you get your allocation right, which means that you're nearing retirement. Dial back your stock exposure so that if that portion of the market was down 35% for couple years, which is typically as bad as it gets, you'd still be able to weather the I think you need an advisor though they can help you navigate. I appreciate your call today. Trust the Lord and let's stay properly diversified along with this. You're listening to moneywise live you can find us online@moneywiselive.org. However, today would not live so if you hear that phone number. Please don't call to stay with this. There's lots of great information ahead.

Are you having trouble staying on budget. Do you have a plan but you just can't control the flow of money in and out. There's more month left than money on a regular basis well I found that the tried-and-true envelope system is the very best way to stay on track with your finances. In fact, a digital envelope system is even better because you've always got access to your envelope balances right there on your smart phone or on your tablet that we built over a years time with three full-time developers. What I believe is the very best digital envelope system out there and it's found in the moneywise app. If you haven't downloaded the moneywise that you can do that today just sent over to your app store Google player the Apple App Store search for moneywise biblical financing in addition to the digital envelope system. You also see our moneywise community where you can post questions and get responses for moneywise.

Coaches will also be able to access our Discover tab with all the best content podcasts, articles and videos in Christian finance all in one place. You also bill to get our broadcast archives as well. It's the moneywise Alpine. It's in your app store. Would love for you to download it today but said to Oklahoma City, Oklahoma. Diane, you're next on the program. Go ahead and have a dilemma, if you expect me to pay off my house like to say slick retirement. I think I want to work but maybe another two years but I just don't know what it was – it that my money yeah very good. Well it's a great question to think about because clearly Diane these priorities with your limited resources are both good. We should be saving for the future. We should also be pursuing a life were completely unencumbered. Over time, and I'd love ideally it doesn't always work out this way. I'd love for you to time the payoff of the home with that. That you're entering retirement so you get your expenses as low as possible, and therefore you don't need as much to find your lifestyle. It also gives you some real great flexibility and peace of mind doesn't mean I can always work out that way. But let's see if we can try to figure out how we can make that work.

Give me a sense of based on your current path how long it would take for you to pay off the home.

Well tolerated by pain and light double note I get paid off at night two years okay and you said two years was about the timeframe you believe you'd like to continue to work is that right right right okay sorry and how much have you saved for retirement at this point but now I have like 150 K very good. Have you done a retirement budget. Diane looking at you if you were to pay off the home what it would take for you to fund all of your expenses each month a little bit yet I think is take take about 3500 okay are very good and what you expect to receive from Social Security and any other retirement income, not counting the hundred 50,000 all about how 3000 okay good well here's the good thing you know if we were to take that hundred and 50,000, and whatever that will grow to over the next couple years and I wouldn't want you to be too aggressive with that since your proximity to retirement is so close your we would typically use a 4% just yell at face value, and we can RBC do more in-depth planning, but just for the sake of our conversation, we would typically use a 4% withdrawal rate.

So if you were to apply that $250,000 that be about 6000 a year 500 a month that you could pull out about hundred and 50,000, and ideally have a investment strategy that allows you not to ever touch the principal so you just as innocence living off of the income and from what I'm hearing, although it might be tight. That 500 a month plus the 3000 you're expecting from other sources would get you that 3500 a month would leave you whole on a margin that it would get you there, and so I kind of like the idea that you would really work toward paying off that home between now and then so that when you retire. Whether it's two years or maybe a delayed by year it's three years you've got that home paid off free and clear you get your expenses as low as possible.

Assuming you're planning to stay in the home and you know you just contribute whatever's left of the retirement account, although I realize it would be less then you could if you weren't focused on paying off the home let that grow over the next couple years. Ideally, the market does well and even if it doesn't, keep in mind you still have a long need for this money even once you retire you you could need this money to last a couple of decades.

So I think that's a good plan for you to really focus on paying off that house between now and retirement and I think with the prospects of the market, probably not growing as much as it has the last couple years and and certainly not of the last decade.

I think that would be a good use of your money to get that paid off and I think you be really glad you did it in the end. Does that make sense with an addendum. I didn't know if which way to go which way would be to bed late yeah and I like that plan a lot. I think that makes a lot of sense to me and I couldn't argue with either one. If you had a real conviction, one where the other, but I think if it were me, I'd like for you to enter that season with your expenses as low as possible and the best way to do that is really to focus in on paying off that mortgage so all the best to you and this next season of life. It will be exciting and to keep us posted on how it goes.

Sorry.

Let's head to Chicago, Illinois Michelle, thanks for your patience. How can I help you find out. My mom and I are looking to do a well.

I'm looking to do a well for her and wanted to see what the best plainly to start and how to get you know just get started on it way to go online or Contact an attorney or where else you know I would typically encourage you to contact an attorney just to make sure that what you're doing is right. You know, things, laws vary by state, you know, this is an important decision. It's the last stewardship decision you'll make in your mom will make for your wills, respectively, to make sure that everything you have and is been entrusted to you will pass according to your wishes.

If you happen to have minor children.

It's critical because that will name the Guardian as well of the average cost for a will drawn up by an attorney on average is a flat fee for about $300 for a simple will, you'll pay. Obviously a higher flat fee for larger, more complicated, the state could be $1000 or more depending upon what the situation is that you certainly can go online to something like LegalZoom that would get the cost down to about $89 and although that's better than nothing.

Again, I like having somebody who's in the competent estate planning attorney asking you the questions and making sure that you know things are done the way to you and your mom wants to reflect your wishes. You can also handle some other things at the same time, like a living well healthcare surrogate and durable power of attorney's and end-of-life decisions are handled so that during a difficult period of time. Those decisions are made in advance and will focus and attention can be given to the care of the individual by the person to each of you name that would be another reason I think to get an attorney, so perhaps for your local church asked for referral or connect with the CK Chicago.

We appreciate your call to this is a reminder that were not live today but we do have lots of great information coming out of the rest of the program, so please pardon if that is robbing you of freedom and peace of mind. Christian credit counselors can help where a nationwide nonprofit counseling organization has helped over 300,000 individuals in the last 27 years get out of credit card debt 80% faster while honoring that that info to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985. Do you know if you have enough enough money of house. Do you know how much is enough. If not, one blue can help with this book. Master your money a step-by-step plan for experiencing financial contentment.

Learn how to save and invest and give wisely, how to create a long-term financial plan and how to get out of debt. You'll find it all. Master your money by Ron blue available when you click the start button moneywise live.org hi I'm very glad I'm a layman to remind you that is a series of router for your spiritual, you know, the major most excited about the things you talk about judging by our conversations or screws is the most excited at this moment about that stuff Christians to become preoccupied with all the people were saying in agreements being lost and they're not happy. Our recent forges found that almost 80% of all Christians are upset and living in fear at this moment in time is never been easier to share. Most Christians lost their faith think James wonders right sprained wrist into our worrying is noble minded and unstable and unable to expect anything from God. If that's where you are today want to stop worrying God is telling you to return to him as your first love in return. During the first thing everyone is sharing your faith night America.com. We've all been hurt. We've all heard others. That's why forgiveness is critical for our spiritual and emotional well-being. But how do you forgive when it's hard in forgive your way to freedom. Gilmer shares his inspiring story of forgiving is difficult, and distant father, and lays out a practical typical process of forgiveness. Learn to forgive and be set free. Forgive your way to freedom more Moody publishers.com it's been lingering in your mind for the past few months.

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Glad you're with us today for moneywise live reapply got your financial life back to the phones, Chattanooga, Tennessee very helpless or wanted to buy a car with tax new have saved up money and I'm funny yet mixes the duct they mowed the lawn dealers may want to actually steer people didn't to deal involved a load and that you understand that your money that check to make money over and above the cost of sale. Yes, I'd like draft find out if there are some techniques about buying that car would be cash not paying exorbitant fees as in David, yes, yes, very good. Are you looking to buy a brand-new Carberry or a used car used used okay very good. It does seem counterintuitive does it to the dealer will want to give you a better deal if you pay with cash and the fact is just what you said dealers make money on each loan they arrange so they'd much rather help you finance the car now.

Smart dealers know that the others a benefit to them if their customers, their cash customers are treated right. It means a quick sale and a better review on yelp or another crowd sourced review site so I might check around for dealers in your area that are good with cash, a great website for that would be dealer rater.com dealer are a TER.com and there's any number of other sources. The way I typically buy a car and I love buying cars. Just because I make it a project or game if you will to buy it suffer the least expensive car is biz I can possibly afford.

You know by looking at in finding the make and model. I want that I go to work on the research research using the Internet as my friend last card you and I bought I ended up jumping on an airplane and flying for states away to buy the car and drive it home because we found a phenomenal deal from a dealership that sells the most cars in that particular state, and you know you can do that if you're willing to put in the time, so once you know what you want and what the right price is that I just start work in the Internet and I would talk to the Internet salesperson those folks are typically you doing higher volume and you let them know right up front. Listen on pan with cash and yelled as much as they may not love that because again, they're giving up some money. I think there still if you find the right dealer who's motivated to move cars and they all are, especially at the end of the month you're going to do better at the end of the month and you will give any other time then you just keep doing your homework and you'll find somebody that will give you a good deal but I applaud you.

Barry don't let that discourage you from paying cash for this car. You've done the hard work to save it up that you continue to do your legwork until you find the right vehicle purchase for you. Unfortunately used cars are at a premium. Right now they are quite quite expensive but as long as you spend the time you'll find the one that works for you and I appreciate your call today. I down south to Florida. Olga, thank you for holding.

How can I help you, 19, I went to my question still yes as long as you're eligible Olga. So basically you're eligible to collect spousal benefits on your former husband's earnings as long as you Artie mentioned the first one.

Your marriage lasted at least 10 years. You said it did. You've not remarried your at least 62 years of age, and your ex-spouse is entitled to collect Social Security retirement or disability benefits as long as you meet those requirements, then you are absolutely eligible.

Also keep in mind your ex doesn't have to be collecting his retirement benefits yet for you to claim X spousal benefits he may have chosen to wait. You can go ahead and begin collecting if this is the case, though, the divorce does need to be at least two years old.

There is no such requirement for the two-year waiting period if your ex is Artie receiving benefits only if he is not so.

Sounds like you need to set up a call a virtual visit with the Social Security Administration. Just go to SSA.gov to do that.

We appreciate your call today about the Grand Rapids, Michigan Jim, thank you for your call today. How can help user I bought a new house up north about 100 miles away from our love and now all I just sold my dear and $120 in equity to put that I will but hundred 28 on the new house might be a credit card adopted a car off put like maybe 70,000 on a new house that down. Work is willing to give me like a three day week in my retirement pay the new house off if I just took a new job up north and just kind of retired so I'm that's kind of my question is like the early retirement work three days commute to hundred miles once a week or retire and pay the house often just get a new job and put a little and saving so if I understand correctly, you do you Artie have a mortgage on the hundred and €28,000 in the new home yet so by paying down 70 of it that wouldn't help your mortgage payment, you'd still have the same mortgage payment until it's paid off. Tell me about so you you really it's going to come down to do you take a job locally or do you take a job out of town and in a local you may work five days out of time your work. Three. Is that right right what in the new mortgage when you can do an annuity or an amortization like six months where you can put in all the equity down and actually change your mortgage to receive and re-amortize the loan that you know I don't have a problem with any of these plans mean clearly you're not living beyond your means you've thought about what it takes to fund your lifestyle you're working toward becoming completely debt-free. The fact you have credit cards. Makes me wonder. You know, are you gonna have the discipline to live within your means, but I love the fact that in either of these cases you're trying to get out of debt, including your home as quickly as you can, which is good to get your lifestyle need your monthly expenses down as low as possible. Those are all good things. I think you know how you decide to slice and dice that you with your visa via job local job out of town that's really a quality of life issue Jim in terms of the work that you're doing and whether or not you want to spend that much time in the car, but you are taking this money.

I think at the end of the day.

I'd love for you to have 3 to 6 months expenses in a savings account. I'd love for you to have all your consumer debt paid off and then paid out as much as you can on the house with what's left re-amortize the loan and then you at that point you'll know exactly what it takes to fund your lifestyle every month and you just need to solve for that with whatever job you take and ultimately that's can be a decision.

I would just pray through and think through very carefully so I hope that helps you my friend. All the best in this exciting new chapter in season of life. We appreciate your call. Our final call today is good to be in Pennsylvania, Sally.

You've been very patient, thank you for that. How can I help you I Sally, go ahead Sally in Pennsylvania are you with us. All right, it looks like we don't have Sally let me read what I believe is her question for my producer.

I have a 401(k) and a Roth IRA want to retire in four years. Are there other investments I should have. Am I on track for retirement. I can't tell you if you're on track or not because I don't know the amount. But here's what I can say you can figure that out yourself so as to whether or not you're on track. I would just look at the first of all, what is your retirement budget going to look like when you get to that point in four years, Sally, go ahead and do a budget as if you were there today and anything that's coming out of that budget deal, because let's say you're not saving for retirement anymore. You're already in it and are there. Is there insurance you were caring that you no longer need a mean just look at all your expenses and and determine what that retirement budget is and what the bottom line is you need each month to fund it, then beyond that I would look at okay what guaranteed income sources do you have if you're going to be collecting Social Security how much is that and then figure out what the gap is between any known income sources and what it's going to take for you to fund your lifestyle on a monthly basis. Ideally, you'd have enough in that 401(k) and Roth IRA such that at a 4% withdrawal rate which ideally if it's managed right you would never touch the principle that 4% a year would fill the gap between your known income sources and what your monthly need is and if you have that. That's great.

If not, then you may need to work a little bit longer or reduce your lifestyle and perhaps sell a home, downsize, find other ways to cut back as to the investment strategy for years out from retirement.

You should be getting more conservative you know if we use the old 100 minus your age. Let's say you're 65, you know hundred -65, you would have 35% in stocks maybe 65% in bonds these days folks are using a little bit more aggressive strategies perhaps as much is 45% in stocks 55 in bonds. That's up to you, but clearly you should be getting more conservative, but I don't want you to get out of stocks altogether because we need that growth component that's the engine that's can keep this growing over the next let's say 20 years of the Lord Terry's new good health.

This money needs to last a long time. Lastly, the think my getting a certified kingdom advised advisor to weigh in on all of this you can do that moneywise live.org just click find a CK call Sally. That's good for us today moneywise live is a partnership between Moody radio and moneywise media lycée thinking my team producing today Deb Solomon engineering Amy Rios Riley research Mr. Jim Henry here call screener today with the fabulous cavity Samuel Bowen sitting in today as well. Thanks to you for being here come back and join us tomorrow will look for you. Then they got blessed with@noon time he theaters in Washington FBI threats to investigate parents who speak out at school board meetings and sparked a backlash by citizens rights advocate Bob Agnew report Florida Gov. Rhonda Santos was quick with a promise to defend parents in history from intimidation by the FBI, the citizens rights group alliance. Defending freedom is now sent a letter to Atty. Gen. Mary Garland asking he resent his order to investigate parents as a possible threat, 80, of General Counsel Kristin Weidner wrote, quote parents expressing concern over critical race theory. Gender theory" would related mandates in public schools do not qualify as domestic terrorists Weidner note, citizens have the right to express their concern to elected officials with no fear of government punishment for doing so.

Bob Agnew report, the federal government is temporarily relaxing the rules for a student loan forgiveness program