PART 1 OF 3: Money Security To Create The Retirement Of Your Dreams

Is your money safe for retirement?

You see, to keep your money secure when you retire, you must understand shortfalls.

These happen when your monthly bills cost more than the income you have.

But what do you do when this happens?

How can you get ready for it?

One way is to plan where your income will come from when you need more.

In today's video, we'll teach you how to make sure your money is safe when you retire, even if you don't have enough.

Hi! I'm Jason Bergquist, the owner and founder of RetirementOfYourDreams.com.

Today, we're starting with Part 1 of a 3-part Video Series: Money Security to Create the Retirement Of Your Dreams.

1. Unlocking the Full Potential of Your Savings for Retirement
2. Navigating Retirement Scenarios: One Income Source or Insufficient Funds?
3. Why Relying on Asset Accumulation Alone Poses Retirement Challenges

Let me introduce myself if we still need to meet. I'm Jason Bergquist!

I empower individuals and families to create the Retirement Of Their dreams.

I've been doing this for over 20 years through the ups and downs of the markets.

My whole goal is to help educate people.

Empower them to understand how to set up the retirement of their dreams and bring hope back into their lives.

I realized this was my calling in 2010 when I was going through a divorce. At that time, I was financially low, and I realized that I wasn't practicing what I preached.

 So, I committed to practicing what I preached and became an Independent Financial Professional and a Certified Financial Fiduciary.

This experience allowed me to always do what's in my client's best interests.

Now, I have a team of experts helping me figure out all of the best options that are out there to empower you to create the Retirement Of Your Dreams.

Again, we're starting with Part 1 of a 3-part Video Series: Money Security to Create the Retirement Of Your Dreams.

In this series, we'll talk about:

1. Unlocking the Full Potential of Your Savings for Retirement
2. Navigating Retirement Scenarios: One Income Source or Insufficient Funds?
3. Why Relying on Asset Accumulation Alone Poses Retirement Challenges

Let's begin.

It's not just about having the money.

It's about knowing how to use it wisely.

Many folks have worked hard, saved diligently, and made investments, but they aren't sure how to set it up to ensure it lasts through retirement.

I empower people like this every day. They have retirement funds, savings, and assets but worry about outliving their money.

Let me share a story about a client named Steve to illustrate this.

Steve was a career employee at a major telecom company. He'd saved diligently, had a solid 401k, and even had a pension.

However, things took a turn when his company started downsizing and laying off employees. Steve began worrying about job security and, more importantly, whether he had enough money to retire.

Steve, like many others, had heard about the 4% rule. This rule suggests you should have enough to last throughout retirement if you withdraw 4% of your savings annually.

However, it's not a guarantee!

For instance, Steve earned a six-figure income and had saved nearly $800,000. He also expected additional pension income.

But even with these assets, he questioned if it would be enough.

Think about it – when you're working, you spend a lot on weekends and leisure activities. But in retirement, it's like every day is a Saturday.

Many people expect to spend less in retirement, but that isn’t typically true.

Could Steve make it on $70,000 or $80,000 a year?

It seemed possible.

However, applying the 4% rule would mean living on just $40,000 a year from his savings.

This is where things get tricky, as you'll need to pay taxes on that amount, and Steve also had to consider his social security income, which was about $25,000 before taxes.

Balancing all these variables is complex.

Steve was concerned and didn't want to rely solely on the 4% rule, especially if the market took a downturn.

We must set clear goals and plan for retirement to tackle this.

We must understand what you want to do in retirement and how you'll pay for it. This is where Steve found himself.

He had several income sources, including his 401k, social security, and a pension. But he worried about whether his pension would be reliable in the long run.

This is where a clear retirement plan is essential.

It's not just about what you want but when you want it.

There are two main scenarios to consider when planning for retirement:

One Source of Income: If you find yourself with only one source of income, such as Social Security, a 401k, or a pension, you might feel limited.

This income source becomes the focal point of your retirement plan.

Insufficient Funds: Alternatively, you may have multiple income sources but not enough money to retire comfortably.

For instance, if you have Social Security, a 401k, or a pension, it may not be sufficient to maintain your desired lifestyle in retirement.

In both scenarios, it's crucial to examine your situation closely.

Sometimes, people reach this point because they didn't take full advantage of retirement planning opportunities throughout their working years.

However, it's never too late to reassess and make the necessary adjustments to secure your financial future.

She had a retirement account from her job and some pension benefits.

When she decided to retire, she faced the challenge of turning her savings into immediate income to replace her work income.

We worked together to help her achieve this.

Converting her savings into an income stream meant Rhonda had to adapt her lifestyle to live on a fixed income.

This is a common situation, and it's vital to understand where you are financially and what resources you have to work with.

To address these scenarios, you must comprehend your employer's retirement plan options, whether they provide tax-free or tax-deferred benefits.

You may want to enjoy your 'go-go' years early in retirement, followed by 'slow-go' years where you spend less.

And eventually, there are 'slow years' when medical expenses might increase.
We'll work together to understand your situation.

This means working longer or adjusting.

Rhonda had one retirement account from her job and a small pension as a federal employee.

When she decided to retire, she had to turn her savings into immediate income to replace her work income.

It was a challenge because she had to manage her lifestyle based on a fixed income.

So, understanding your circumstances and having a clear picture of your resources is crucial.

While accumulating assets is essential during your working years, shifting your mindset toward creating guaranteed income streams for your retirement is equally important.

This ensures that you have a consistent source of income to maintain your desired lifestyle throughout retirement.

The transition from accumulating assets to securing guaranteed income streams is a significant shift in financial strategy.

This is what we'll delve into next.

Remember, your financial situation can be improved, and a solid retirement plan can be established.

It often starts with a clear picture of your goals and understanding how to utilize the resources at your disposal best.

This shift in perspective can be transformative, leading to a more secure and fulfilling retirement.

In retirement, simply accumulating assets isn't always enough.

If you're not careful, you might run into two major issues: running out of money before you pass away or living too frugally, saving money 'just in case.'

This 'just-in-case' mindset can lead to not enjoying your hard-earned retirement savings. It's like saving money for a rainy day that never comes. But we aim for a more comfortable and fulfilling retirement.

The first step is to get a clear retirement picture – what do you want to do, and when? Your retirement years may look different at the start, middle, and end, and you must plan accordingly.

Next, we'll assess your employer's retirement plan.

What do you have?

How is it structured?

Is it tax-efficient?

How reliable is your pension?

Can you choose a lump sum or an income stream?

Social security also plays a significant role.

We'll analyze when and how to claim your benefits.

If you're married, we'll consider the best strategies for both spouses.

Planning for healthcare costs is vital, especially in your later years.

Life insurance can provide security for your family and cover your burial costs.

And, if you want to leave a legacy, we'll look at how to pass your assets to your loved ones.
Lastly, we'll examine your assets to turn them into income streams.

The primary issue with solely concentrating on accumulating assets for retirement, rather than building guaranteed income streams, is that it can lead to significant problems in your retirement years.

The key is shifting your perspective and creating a clear plan with guaranteed income streams.

Building these income streams allows you to avoid the problems and ensure the Retirement Of Your Dreams.

1. Unlocking the Full Potential of Your Savings for Retirement
2. Navigating Retirement Scenarios: One Income Source or Insufficient Funds?
3. Why Relying on Asset Accumulation Alone Poses Retirement Challenges

Now that you understand the critical importance of guaranteed income streams for Money Security to create the retirement of your dreams ...

Tune back next week to Part 2 in this series about Money Security, where we'll dive further into this and explore your best options.

Thank you for considering Retirement of Your Dreams as your partner on your financial journey!
What was your BIGGEST takeaway from this week's video?

Please scroll down and let me know in the comment section below!

I'm Jason Bergquist, empowering you to create the Retirement Of Your Dreams!