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Simple Step: What's Your Number?
41 Plays10 days ago
In this quick yet informative episode of the Uncommon Wealth Podcast, host Phillip Ramsey delves into the essentials of crafting a pseudo-financial plan. As the year draws to a close, he emphasizes the importance of understanding your "number" for retirement planning. Phillip critiques a popular commercial that oversimplified the concept of a retirement "number," and instead offers a straightforward method for determining your monthly income needs post-retirement.
Phillip Ramsey provides listeners with a step-by-step guide to calculate their retirement number using accessible figures, such as monthly expenses and Social Security benefits. His approach demystifies the financial planning process, encouraging individuals to assess their own financial landscape and future needs. This episode is a must-listen for those seeking practical, grounded advice on securing their financial future.
Key Takeaways:
- The concept of having a "retirement number" is important, but oversimplified in mainstream financial advertising.
- Understanding your monthly expenses is crucial for creating an accurate retirement plan.
- To calculate your retirement "number," determine your monthly income needs, subtract estimated Social Security benefits, and divide by 0.04.
- Financial planning doesn't have to be complex; small, thoughtful steps can lead to substantial progress.
- Now is the perfect time to evaluate your financial situation and strategize for long-term wealth.
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Transcript
Introduction to The Uncommon Wealth Podcast
00:00:00
Speaker
Everyone dreams of living an uncommon life, and the best asset you have to achieve your dreams is you. Welcome to the Uncommon Wealth Podcast.
Objectives and Unique Life Paths
00:00:12
Speaker
We're going to introduce you to people who are living uncommonly. We're also going to give you some tools and strategies for building wealth and for pursuing an uncommon path that is uniquely right for you.
Creating a Pseudo Financial Plan
00:00:27
Speaker
Hello everybody. This is Philip Ramsey. Thanks for listening. We got a simple step for you. So pretty quick, but I thought it would be really helpful for people as we kind of near the end of this year, trying to help you kind of do a pseudo financial plan. So I don't know if anybody remembers, but I think Voya or ING, I can't remember who they were at the time, ran a commercial and they were like, what's your number?
00:00:47
Speaker
And all these people were walking around and they have this huge number over their head like one million five hundred thousand six hundred and eighty two dollars. And then they would walk around everybody have this number so what did that mean i think it was a mess on their their read actually cuz no one knows what their number is and so they're like oh come over and hang out with us will tell you what.
Calculating Retirement Needs
00:01:06
Speaker
Here's what I think would be helpful. What's your monthly income that you need? And then if you can inflate that for however long it is, maybe two and a half percent for the next 15 years, that's really what your monthly expenses are for retirement. So this is what I'm asking everybody to do. We can try to figure out what your number is today. And this is how you do it.
00:01:26
Speaker
So you take your monthly expenses. If you don't know it, you're gonna need to know it. So figure out what your average monthly expense is. If you don't know it, then just take what you guys have income wise between you and your spouse or you and all your investments, and then take that number, let's say it's $10,000, okay? Then you're gonna multiply that by 12. So $10,000 times 12, because there's 12 months in a year, that's $120,000, okay?
00:01:53
Speaker
then what you're gonna do is subtract what you believe your social security benefit will be so let's say in this example it is going to be twenty thousand for me. Ten thousand for my spouse i'm making this up so that's thirty thousand dollars. Less so now we're at ninety thousand dollars you take ninety and you divide it by point zero four.
00:02:16
Speaker
and that's your number. 2.25 in this example, $2.25 million dollars is what number that we would like to have in a retirement account or have access to when you get ready to retire. So if your numbers are lower, probably gonna be lower. If it's higher, you need
Encouragement and Support
00:02:32
Speaker
to be higher. So that's a quick, simple step for you just to kind of step into a little bit of a financial plan. I hope this helps and thank you so much for always listening and being a huge supporter. We appreciate it. Thanks for listening on Commonwealth Podcast.
00:02:44
Speaker
you are awesome go be uncommon thanks
00:03:00
Speaker
miss an episode as we introduce you to inspiring people who are actively pursuing an uncommon life.