How Do You Know The Answers To These Three Questions?
[1:34] – Goldman Sachs Predicts Low Risk Of Recession
- Economists at Goldman Sachs predict low risk of recession in 2019.
- Remember, these terms are general. They don’t apply to you as an individual.
- Don’t bank your future on Wall Street’s predictions.
- Goldman Sachs could be wrong.
[3:45] – How Do You Know How Much Income You’ll Need?
- Get an income analysis. Get a clear picture of how much income you want and whether your investments can deliver that income.
- You won’t know exactly what you need.
- If you’re retiring today, take a year to determine what you’re spending.
- Make a general budget, and tweak it as you go.
[6:03] – How Do You Know How Much To Put In The Bank?
- You need an emergency fund.
- You need at least three to six months worth of expenses in safe, liquid cash.
- This money is for EMERGENCIES only. When your car breaks down, when a tree falls through your roof, use this money.
[7:32] – How Do You Know How Much Risk You Should Be Taking?
- The answer lies within behavioral economics. Every individual is different.
- Everyone has a level of risk tolerance.
- We can run a stress test on your portfolio to determine what it would lose in a stressful situation.
- How much risk you should be taking is directly correlated to how much you can stand to lose in your portfolio.
[13:50] – A Trivial Aside
- We step aside from finances to quiz Joel on his knowledge of Hollywood.
[15:04] – How To Manage Your Adult Children
- Joel advises how to manage your adult children as you plan for retirement.
- If your children are still on the payroll, you need to know whether you can support them.
[16:39] – What To Do About Paying For College
- If you had kids later in life, you could be paying for their college education as you retire.
- You need to know whether you can afford to pay for their education.
[17:51] – How To Take Care Of Aging Parents
- Ask whether you can afford to care for your parents.
- Determine whether your parents will live with you.
[19:30] – Leaving A Legacy
- Legacies are a personal decision.
- You can be extremely intentional about leaving a legacy.
- You need an estate plan to accomplish your goals.