Ep 42: Listener Questions – Income Plans, Social Security and Stocks

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Today we’re answering some of your excellent financial questions. How much should you spend in retirement? When’s the best time to take Social Security? We’ll answer these questions and more on today’s show.

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Show Notes

Today’s show is all about you and answering your questions about finances. Let’s jump into it.

Deborah asks: I want to have a lot of fun and do a lot of traveling when I retire, but to do what I want to do, I’ll need to have an income in retirement that’s higher than my income while I’m working. Would that be irresponsible?

Wow, good question. There are a lot of different thoughts on this in the financial world. Some say spend 70% to 80% of your working salary, but this often doesn’t happen. People want to travel and do different things.

It is OK to spend more in retirement than you spend today. You are not alone, and it’s not irresponsible. I actually see this a lot. This all assumes you’ve saved enough money to do so.

You need to create an income plan and figure out your expenses, which will help determine how much money you can withdraw.

Andy asks: How much of my portfolio is it OK to have invested in just one stock? I have about $2 million, but almost half of it is invested in one company.

This is another great question because it helps us explain the importance of diversification. You need to think about emotion versus logic. Sometimes people become so emotionally tied to a stock that they’re not doing what’s right for them.

It also depends on where you are in life. If you’re still in the accumulation phase, you might be able to recover if one stock crashes. But if you’re closer to retirement, you could have a hard time.

Listen to the full podcast or use the timestamps below to jump to a specific section.

 

Listen to the full podcast or use the timestamps below to jump to a specific section. 

[1:42] – IRS backlog article

[5:32] – Retirement income

[10:38] – One stock

[15:35] – Social Security

[20:18] – Life insurance

Thanks for checking out this episode. We’ll talk to you again soon.

“Since we can’t control the market, we don’t want to focus on what happens each and every day on the market. We don’t want to panic.”

-Scott Sierens