Wealth Planning Strategies

Posts on wealth planning strategies such as downsizing, planning for retirement, estimating retirement income, early retirement, wealth manager tips, how much money do you need to retire, retirement withdrawal strategies, taxes, estate planning, and retirement spending.

Plan A to B | Alternative Wealth Strategies

Alternative Wealth Strategies That Worked (And Didn’t)

There are the wildly popular if not overly simplified asset allocation models of investing in stocks and bonds. Then, there are alternative wealth strategies we know the wealthy use that can seem out of reach for us normal investors.    Are they really out of reach for us individual investors? If not, which alternative wealth …

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Wealth Building Fundamentals Inspired by My Abundant Fig Harvest

  Last week as I picked an abundant fig harvest, I couldn’t help but think about how much my fig harvest parallels the wealth building fundamentals I’ve learned (many the hard way!) from investing in dozens of different assets and strategies over the past few decades as a personal investor.   These wealth building fundamentals are …

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What Are Defensive Investments?

It’s often said that managing risk is as important as getting good investment returns. Ownership of defensive investments can offset potential losses from other investments while smoothing out returns.  Treasury bonds, T bills, gold, money market funds, put options, TIPS, and inverse ETF’s are all examples of defensive investments. These are all assets that tend …

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couple over 50 working together

How To Account For Inflation In Retirement Planning

Inflation is a lurking but serious danger that can destroy your ability to live well in retirement. If you’re wondering how to account for inflation in retirement planning, the main thing is to simply do it. First, use calculators that factor inflation into the numbers. Next, plan for inflation a little higher than what you …

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Woman cash | How to Make Money When Stocks Go Down

How to Make Money When Stocks Drop

There are simple ways to make money when stocks drop using more traditional investing methods and there are also more advanced strategies to make money when stocks drop. In this post, I will cover simple to slightly advanced strategies that both investors and many wealth managers use to make money in down markets for their …

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Pencil Questionnaire | Ready for Retirement Quiz

Ready for Retirement Quizzes | 4 Reviewed

Quizzes can be a great way to gain insight and direction quickly.  I scoured the internet for a good ready for retirement quiz for Retire Certain readers. Here is what I found.   The AARP Ready for Retirement Quiz  Like most of the quizzes here, this quiz is more information based than geared toward whether you have enough money saved to retire. Nevertheless, there …

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Money Sign | Retire at 55 with 2 Million 

Can You Retire at 55 with 2 Million Nowadays? (Videos and Table)

Can you retire at 55 with 2 million?  A retirement account with 2 million produces a monthly annual withdrawal of  $80,000 using a traditional 4% withdrawal rate. If you can live on $6,667 plus any other income sources, traditional retirement rules suggest that $2 million is enough to retire at 55. Your expenses, chosen retirement …

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man over 50 looking for new ways to retire

New Ways to Retire

An exciting and promising shift is happening right now in the way we retire.  Fortunately, changes stemming from the rise of the internet now lead to rewarding retirement opportunities for those not interested in living on less while working crossword puzzles for brain stimulation in their golden years. The younger generations are living proof of …

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man sailing into retirement with income streams

How to Increase Income Before Retirement [With Video Challenge Series] 

It’s stressful knowing that the consistent (and delightful!) monthly deposit into your bank account will end when you retire.  But there are many ways you can increase income before retirement to ease the abrupt end of that sweet reliable employment income. Stock dividends, covered calls, alternative investments, various real estate investments, and even consulting or online …

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Burning Franklin | How Long Will a Million Dollars Last in Retirement

How Long Will a Million Dollars Last in Retirement?

A million dollars no longer guarantees a comfortable retirement complete with cruises and luxury cars.   How long will a million dollars last in retirement?   In this post, you’ll see.   The inspiration for this article comes from working with a 55-year-old wealth coaching client who was wondering how long her million dollars would last in retirement. Let’s …

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money market vs stocks

How Much to Keep in Money Market Accounts | 15 Factors 

No one wants to run out of cash. By cash, I mean that super safe stash you keep in a money market account that won’t fluctuate in value the way stocks do.   But just how much should you keep in a money market account? It depends on some personal things like your investments, portfolio allocation, dependents, …

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calculator pov | How to Calculate Investment Income

How to Calculate Investment Income

True financial independence is being able to live off investment income without spending down your investment capital.  Here’s how to calculate investment income: Multiply investment cost by the yield to get the amount of annual income. For example, if an investment that costs $100,000  yields 3%, investment income will be $3,000 a year.   After calculating …

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New Business | New Retirement Strategies

New Retirement Strategies

The old model of retirement no longer works for a lot of people who want to live well in retirement.  Old retirement strategies include basics like delaying social security, working longer and part time employment. But, fortunately, there are now some more innovative and lucrative retirement strategies that can be a real godsend for retirees.   Many millennials are already using some of these new retirement …

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couple toast

Fear of Retirement Boredom | 7 Cures [Videos]

For those planning to retire soon, retirement can feel scary from both a financial and a lifestyle perspective.  Fear of retirement boredom is a very legitimate reality, especially for certain personalities. Here are 7 ways to address that subtle and almost embarrassing fear that you could be bored to tears in retirement. Read my own …

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Bear vs Bull | Are Stocks Safe for Retirement?

Are Stocks Safe for Retirement? 8 Important Factors 

Every time I hear someone confidently tell me that they are invested in “safe stocks” so they’re not concerned about a “stock market crash,” I silently shudder.  Are stocks safe for retirement? It all depends on your risk tolerance, net worth, stock market valuations and other factors explained below.   After investing for almost 40 years …

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Man Whiteboard | Living Off Investment Income – Advantages and Disadvantages

Living Off Investment Income | Advantages and Disadvantages

True financial independence is reached when you can live off investment income.  Living off investment income has many advantages that often require a shift from traditional investing in stocks and bonds, but there are also a few disadvantages to living off investment income.  In this post, I’ll share and explain the 22 advantages and 6 …

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Is Downsizing the Right Choice to Retire Earlier?

Downsizing can be a smart option for anyone who wants to retire soon but lacks the funds to retire comfortably for life. Is downsizing the right choice to retire earlier for you? The answer depends on your overall wealth plan, cost to downsize, alternatives to downsizing,  downsizing calculations and how much it takes for you …

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nest egg | What Net Worth Do You Need to Retire

What Net Worth Do You Need to Retire? Huge Aha

Just past midlife, many people get super focused on increasing net worth before retirement.  What net worth do you need to retire? You’ll need enough assets to allow you to cover all living expenses with retirement account withdrawals of 3% to 5%, plus any other income sources, including social security. Also, living expenses should be adjusted for …

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drive safe | Is It Safest to Withdraw or Get Investment Income

Is It Safest to Withdraw or Get Investment Income? Challenge

Updated: October 9, 2019 By definition, retirement is the time when you can live off investments. The traditional retirement model is to withdraw 4% a year from your retirement savings to live but an increasingly popular alternative is to get income from investments instead.   Is it safest to withdraw or get investment income to live in …

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ten blocks | What Will Stocks Do Over the Next 10 Years

What Will Stocks Do Over the Next 10 Years?

Updated May 6, 2020 At the end of the strong bull market of the 1990’s, a few brave financial experts predicted the next decade would not be a good one for stock investors.  What will stocks do over the next 10 years? Ray Dalio, Warren Buffett, Rob Arnott, Liz Ann Sonders and John Bogle have told us what …

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money puzzle | How Much Money Do You Need to Live Off Investments

How Much Money You Need to Live Off Investments 

Knowing how much money you need to live off investments can seem daunting but it’s really just a few steps and math.   Let’s say you want to generate $ 10,000 a month to live off investments.    We can back into the amount of money you need with the following formula:  Amount of Desired Monthly Income/Expected Yield = …

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money tree | 4% rule dividends

Does the 4% Rule Include Dividends?

If you’re exploring early retirement like we were well over a decade ago, you may be wondering about the income provided from the standard 4% retirement withdrawal rule. Does the 4% rule include dividends, specifically? The 4% rule can include dividends if they exist in the account since the rule is more about the amount …

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How to Buy Assets That Generate Income

If you’re approaching retirement, that anticipated time when you can live off investments or at least work fewer hours own your schedule, you’re probably transitioning to income investing. You may be wondering how to buy assets that generate income. The way you buy income generating assets depends on the type of asset you’re buying. For example, …

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man planning retirement

The Best Income Stream to Start Before Retirement

If you’re concerned about having enough income to live comfortably in retirement, you may want to start one or more income streams beforehand but you’re not sure where to start. To choose the best income stream to start before retirement, consider your desired income, eventual capital gain, acceptable risk and lifestyle. It’s easy to get …

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How Many Income Streams Should You Have? [Videos]

The more income streams you have the better, right? This is not necessarily true. How many income streams should you have? It have depends on your goals, available time, types of income streams, available capital, taxes, demonstrated success, income reliability, and desired lifestyle. In this post I’ll share what I’ve learned in each of these …

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Risk Reward | Start a Business or Invest in Stocks

Start a Business or Invest in Stocks: Which Is Better?

It can be challenging to choose the best opportunity to maximize your valuable time and capital. Investing in stocks has long been considered the best strategy to build wealth. With the explosion of entrepreneurship over the past decade and the fact that most of the wealthy made their wealth from business, it makes sense to …

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Our Simple But Innovative Retirement Income Planning

Are you ready to begin retirement income planning? In this post, I’ll present the steps to an innovative retirement income planning process that’s different from the norm. This is the approach that we decided to develop and use in late midlife after being thrown a few curve balls. These curve balls are also known as …

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coffee work | how to live off investments

How To Live Off Investments During Low Interest Rates [Videos]

You may be wondering how to live off investments, especially in this day and age of extremely low interest rates when your investments don’t earn much income. Simply put, you can live off investments in one of three ways:  Spend your savings and the growth from that money Spend the income your savings generates for …

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