31 min
Retirement Planning Headlines – May 2024 Kitchen Table Finance
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- Investing
Welcome back to our much-anticipated May 2024 edition of “Retirement Planning Headlines,” where we save you the hassle of combing through endless financial articles. This month, we’ve even had listeners chime in with topics for our deep-dive discussions.
Watch on YouTube HERE
Articles Discussed in this Episode
How Much Should You Spend on Vacation?
5-10% of take-home pay on Vacations
Never go into debt to pay for vacation
Beware of luxury creep and entitlement creep
Don't get caught up in Instagram vacations
Don't be a vacation scrooge
Is planning for age 95 longevity overkill?
How long should you plan to live in retirement?
The industry practice of planning to 95 but a new report shows most people won't reach this age
The report notes that “for the almost 30 percent of the 65-plus population with diabetes, there is less than a one percent chance they will reach 95
a typical 65-year-old man with no chronic conditions, there is only a 19.3 percent chance of living to 95. A 65-year-old with high blood pressure has slimmer odds, with a 17.5 percent chance of living for another 30 years.
Plan to 95 and live to 86 could potentially spend an additional $447,000
How to think about planning to 95
Family health history
Your health condition
Making adjustments along the way
Risk profile
Legacy goals
Retiring Early Is Your Dream. 7 Steps to Make It Come True.
Steps to Weigh Early Retirement Decisions
Understand the why
Play devils advocate
Crunch the numbers
Plan ahead
Social security considerations
Factor in healthcare costs
Consider part-time work
‘What Was I Thinking?’ The Big-Ticket Items People Regret
Rolex
Vacation home on land not owned
RVs
Clothing salesman with a $1,800 cover-up
The Downside of Delayed Gratification
Research shows that if we decide not to use something (delayed gratification) the possession will feel more special
Can lead to us not using at all or delaying too long instead of embracing the moment.
The big takeaway is that delayed gratification isn't always the answer
The kids with the marshmallows! (shout out to Daniel Kahneman!)
All the kids that were able to delay gratification DID SOMETHING to distract themselves
How Much Happiness Can Your Salary Buy? Researchers Can’t Agree
Money buys happiness. With diminishing returns. And no magic number
Money buys happiness
Money matters for happiness, but not enormously
It isn't what money buys, but the choices it affords
Diminishing returns
As income increases, each dollar makes less of a difference in happiness
More about % change than $ amount
Magic number
There is no magic number ($75,000 or $110,000 in today's dollars)
Not a refutation of the underlying premise, but it does bring up nuances to the argument ($75k is an oversimplification)
Ugh. Do I Really Need a New Roof Right Now?
Interesting for the topic, but also the philosophy
Roofs can last longer than conventional wisdom, but the range is huge and depends on the environment, how it was installed, etc.
The columnist had a roof leak
Paid a roof inspector -and was told $2500 for a repair
Also got an opinion from a roofing contractor - $18,000
Welcome back to our much-anticipated May 2024 edition of “Retirement Planning Headlines,” where we save you the hassle of combing through endless financial articles. This month, we’ve even had listeners chime in with topics for our deep-dive discussions.
Watch on YouTube HERE
Articles Discussed in this Episode
How Much Should You Spend on Vacation?
5-10% of take-home pay on Vacations
Never go into debt to pay for vacation
Beware of luxury creep and entitlement creep
Don't get caught up in Instagram vacations
Don't be a vacation scrooge
Is planning for age 95 longevity overkill?
How long should you plan to live in retirement?
The industry practice of planning to 95 but a new report shows most people won't reach this age
The report notes that “for the almost 30 percent of the 65-plus population with diabetes, there is less than a one percent chance they will reach 95
a typical 65-year-old man with no chronic conditions, there is only a 19.3 percent chance of living to 95. A 65-year-old with high blood pressure has slimmer odds, with a 17.5 percent chance of living for another 30 years.
Plan to 95 and live to 86 could potentially spend an additional $447,000
How to think about planning to 95
Family health history
Your health condition
Making adjustments along the way
Risk profile
Legacy goals
Retiring Early Is Your Dream. 7 Steps to Make It Come True.
Steps to Weigh Early Retirement Decisions
Understand the why
Play devils advocate
Crunch the numbers
Plan ahead
Social security considerations
Factor in healthcare costs
Consider part-time work
‘What Was I Thinking?’ The Big-Ticket Items People Regret
Rolex
Vacation home on land not owned
RVs
Clothing salesman with a $1,800 cover-up
The Downside of Delayed Gratification
Research shows that if we decide not to use something (delayed gratification) the possession will feel more special
Can lead to us not using at all or delaying too long instead of embracing the moment.
The big takeaway is that delayed gratification isn't always the answer
The kids with the marshmallows! (shout out to Daniel Kahneman!)
All the kids that were able to delay gratification DID SOMETHING to distract themselves
How Much Happiness Can Your Salary Buy? Researchers Can’t Agree
Money buys happiness. With diminishing returns. And no magic number
Money buys happiness
Money matters for happiness, but not enormously
It isn't what money buys, but the choices it affords
Diminishing returns
As income increases, each dollar makes less of a difference in happiness
More about % change than $ amount
Magic number
There is no magic number ($75,000 or $110,000 in today's dollars)
Not a refutation of the underlying premise, but it does bring up nuances to the argument ($75k is an oversimplification)
Ugh. Do I Really Need a New Roof Right Now?
Interesting for the topic, but also the philosophy
Roofs can last longer than conventional wisdom, but the range is huge and depends on the environment, how it was installed, etc.
The columnist had a roof leak
Paid a roof inspector -and was told $2500 for a repair
Also got an opinion from a roofing contractor - $18,000
31 min