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.