🚀 Are you tired of feeling like your retirement goals are out of reach? Learn the #1 strategy to retire faster, without the need for extreme lifestyle changes or side hustles! 💼🔥
In this video, Johnathan Rankin, founder and CEO of Theorem Wealth Management, reveals the most effective way to retire earlier, even if you think it's impossible. You don't need to follow the FIRE movement (Financial Independence, Retire Early) to retire at a comfortable age. All you need is a solid retirement plan, and we're here to help you create it!
🔑 Key Topics Covered:
Introduction to retiring faster
The difference between retiring early and retiring faster
Why most people struggle with retirement planning
How to create a clear and achievable retirement goal
Forecasting your retirement savings and income
Determining your "pre-qualified" retirement lifestyle
Adjusting your plan if you're not on track
The importance of starting early and staying flexible
How to get help with your retirement planning
By following the advice shared in this video, you'll be able to create a realistic retirement plan that fits your unique needs and desires. You'll learn how to forecast your savings, determine your retirement income, and make the necessary adjustments to retire at the age you want.
📚 Need help with your retirement planning? Schedule a call with our team using the link in the description below. And if you're interested in making the most out of your 401(k), check out this video for more tips and strategies. Don't forget to subscribe to our channel for more wealth management and retirement advice! 📈
🔗 Useful Links:
Schedule a call with our team: https://www.theoremwm.com/start-here
401(k) Maximization Video: https://youtu.be/XALp7mjm6I0
Not a week goes by where I don’t talk to someone who has a goal of wanting to retire at a certain age, but believe that goal isn’t achievable and that they are going to retire much later. This always leads to the question, “how can I retire earlier?”
So, in this video, I am going to cover the number one thing you can do to retire faster. Hey everyone if we haven’t met yet I am Johnathan Rankin, the founder and CEO of Theorem Wealth Management. Where our goal is to help you maximize your retirement.
In my mind there is a big difference between retiring early and retiring faster. Over the past couple years there has been this fire movement the financial independence retire early movement where people go through extreme lengths so they can retire in their 30s or 40s. That includes taking on side jobs and cutting back spending in extreme manners to save as much as possible so they can achieve that retirement goal and that's great. But that's not what we're talking about here. Every single week I talked to dozens and dozens of people in their 50s and 60s that just want to retire at a normal age for some that is 60 for some at 62 for some it's 65 and for some it's 70. But in every conversation I usually get two different ages. The first age is the age at which someone would like to retire and the other age is the age in which they think they can retire.
There are a lot of things that you can do to retire faster But for a lot of people maybe some of those things just aren't realistic. Maybe it doesn't fit your schedule to be able to take on a second job or maybe you've done everything you can to cut back on your spending and you're saving as much money as you physically can at this time. But there is one thing that you can do they can help you retire faster and it doesn't involve a second job extreme spending cuts. The one thing you could do that will help you retire faster is aggressively plan for your retirement.
Now what do I mean by that? I've been helping people retire for going on two decades I can say that after thousands of conversations about retirement only a very small fraction of people that I've talked to have a clear understanding of what retirement looks like to them. Retirement is just like any other goal it requires specifics to really become achievable. Think about some of the most common goals that people. that could be losing weight and getting into shape. But if the whole goal was I wanted to lose weight and get into shape does that really say anything about what I want to accomplish? Because if I lost one pound I technically lost weight and I guess I am a shape so I got into a shape but what is in shape? Now if I said I would like to get to 10% body fat by December 31st and based on my current body composition that means I need to lose 15 pounds I have a very clear idea of what achieving that goal looks like.
another common goal for people is to eventually buy their first house. But if I went to a realtor and said my goal is to buy a home this year and that was all I told them could you imagine the listings that you would get back? Think about the search filters on real estate websites whether that's Zillow or Redfin. You can get as specific as you want so instead of saying that you just want to buy a home eventually that goal might turn into I would like to buy a home with at least three bedrooms 2 bathrooms 2000 square feet and a certain neighborhood with a certain size lot That was built between 2008 and 2009.
In both of those examples each goal had a clear definition of success and that is one thing that most people lack when planning for their retirement. Maybe that's because there are no search filters or parameters around building a retirement lifestyle. It is completely up to you and it's unique from person to person and that can make it a lot harder. The other thing that makes retirement planning harder than planning for most goals is that you're trying to plan for a future Lifestyle and not something that has and end date.
So let's talk about how you can make it easier for you and how you can retire faster. If you're like most people you know that at some point you want to retire but the specifics around that retirement are still unclear. The best thing you could do that will eventually help you retire faster is to know what kind of lifestyle is possible. Think of this as getting pre qualified for a house. When you go through that pre qualification process for a home you know exactly how much you could spend and that will tell you what kind of house you can get when you start searching for homes. I remember doing this right after college when I thought I wanted to buy a home and I would look at listings and drive by neighborhoods and have this goal of buying my first house. Then I went through the pre qualification process and I was told I can only buy a home that is less than $200,000. And when I looked at all the homes that were in my price range I realized that even though buying one of those homes would satisfy my goal of buying a home they just weren't what I wanted and that if I wanted to get the type of house that I truly wanted I had to save more, make more and wait.
So how can you do this for your retirement? Well you have to start somewhere so just pick an age. It could be the most aggressive earliest age or it could be the age at which you decide I no longer want to work anymore at this specific age or anytime in between but just pick an age. once you pick that age you'll want to create a list of all of the savings accounts that you'll rely on for your retirement. That could be your 401K an IRA a brokerage account or just savings in the bank. You should also write down how much you're saving in each account every year. You'll want to have a list of all of the incomes that you expect to have in retirement and that could be a pension that could be rental income or it could just be your Social Security benefits.
So at this point you have some arbitrary date in the future a list of how much in savings you have today a list of how much you save every single year and what income streams you are expecting in retirement. for the next step you could attempt to do this by hand or you can search for an online tool to use or if you'd like you can use the link in the description below and our team would be happy to help you with this process.
The next step is forecast how much in savings you will likely have at that date you chose and that amount is going to be based on your yearly savings and some sort of rate of return and just to be prudent I always recommend estimating a moderately conservative rate of return because if things are better than that then great, but at least you aren’t making major life decisions on achieving an aggressive rate of return.
So let's say you're 50 years old today and you decide that the earliest age that you would love to retire is at 62 years old. Currently you have $250,000 and you save $3000 per month and that includes your company match and your 401K. If you assumed a 5% rate of return by the time you're 62 you'll have a little over $1,000,000 at 62. Now you can use the 4% rule if you are doing it on your own or an advisor can help you get detailed with a withdrawal strategy, but assuming the 4% rule, that means that you can withdrawal $40,000 from your savings per year. Let’s assume that if you were planning on retiring at 62 that you would also begin to collect your Social Security benefits at that time and let's just assume that came out to $25,000 per year.
So just like getting prequalified for a house, you have to decide if you can live the lifestyle you want with $65,000 of yearly income. if that is enough for you to maintain your lifestyle great now you have a better idea of a realistic retirement. If it's not Then you'll want to go through this exercise for every single age until you get the number that works for you. At a certain point based on your current savings and savings rate maybe you don't get to that number that you need to retire comfortably. It's much better to know that you're not on track as early as possible than it is to find out you're not on track when retirements were out around the corner.
there is no magic bullet when it comes to retirement. if you find yourself not on track to your retirement there are three things that you can do you can save more, you could delay retirement, or you can reduce how much you spend in retirement. That’s it. Those are the three things that you control. The people that I have seen firsthand retire with more confidence, and at the age they truly wanted to retire started thinking about retirement a lot earlier than most of their peers. Even though the specifics may not have been clear from the beginning, they started with understanding what kind of lifestyle they were on track to achieving and then made modifications over time. You don’t have to know exactly what your bills are going to be in 10 years from now. I have 2 young kids and I have no clue what my expenses will be next year, let alone 10 or more years from now. At some point, budgeting and expense tracking will become important when planning your retirement, don’t let that get in your way of at least seeing what kind of retirement you are pre-qualifying for.
If you need help and just feel overwhelmed and confused, use the link in the description below and schedule some time with a member of our team. If part of your retirement strategy includes saving in a 401(k), make sure you check out this video where we cover how you can make the most out of your 401k, I’ll see you there.
Registered Representative of Sanctuary Securities Inc. and Investment Advisor Representative of Sanctuary Advisors, LLC.– Securities offered through Sanctuary Securities, Inc., Member FINRA, SIPC. – Advisory services offered through Sanctuary Advisors, LLC., an SEC Registered Investment Advisor. – Theorem Wealth Management is a DBA of Sanctuary Securities, Inc. and Sanctuary Advisors, LLC. This communication has not been reviewed for completeness or accuracy, does not necessarily reflect the views of Sanctuary Securities, Inc. or Sanctuary Advisors, LLC., and is not a recommendation or endorsement of any product, service, or issuer. Third party posts do not reflect the views of Theorem Wealth Management or Sanctuary Securities, Inc. or Sanctuary Advisors, LLC., and have not been reviewed for completeness and accuracy. All further communications from this representative must be sent from and received by email@example.com. For additional information, please refer to one of the following consumer websites: www.FINRA.org, www.SIPC.org.
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