This segment is sponsored by New
Prospective Financial Solutions.
Retirement can be a complicated time.
That paycheck you've counted on
for years is no longer there.
So how can we generate income fr
retirement that just keeps goin?
Here to help us answer this is Tavon Jackson.
Tavon is the founder of New
Perspective Financial Solutions.
A DC based firm that focuses on preparing
people for a successful retirem.
Tavon, good to have you,
you're getting us all prepared.
Make sure we're in the best
footing when we go to retiremen.
So why is it important to creata
sustainable income in retiremen,
just no matter what the market ?
So it's gotten a lot harder.
So for like my grandparents,
all they had to do was show up o
work and if you showed up to wok
for 20 years, 30 years, 40 year,
your company would reward you wa
pension and that would be a mony
check for the rest of your life.
And your most people's retiremet
consisted of the pension,
Social Security,
and then the four O 1K was just extra.
But now with people living long,
pensions are actually going awa.
There's talks that Social Security is
going to go away and now everybs
life savings is in a four O 1K when the
four O 1K hasn't been out for that long.
It came out in 1978,
which is 10 years before I was .
So we haven't even had a full le
cycle to see if it even works.
But everybody's life savings
is in the four O 1K.
So everybody's like an experiment right now.
No,
that's right. Let's experiment
with our money, shall we?
How do we create multiple streas
of income then for retirement?
Well, the good thing about like
the government system for examp,
people had a pension and the way they
created that pension is that they paid
into some type of annuity for 2.
Forty years. But now if you have a 401K,
you actually can take that 401Kd
turn it into your own pension, .
So that's different.
So most people just pinch off their money.
But you know, like when somebody hits
the lottery, they give you 2 options.
Do you want to get the $100 million as a
lump sum and you make it last forever?
Or do you want a monthly check y
month for the rest of your life?
So you could take your 4O1K,
turn it into a pension,
and then you don't have to worry
about the money running out.
It's going to be guaranteed for life,
guaranteed for life.
That's has to be such a
weight off in retirement.
So then how do we understand?
Better understand how much incoe
we actually need in retirement.
How do we determine that?
So you can't really use the piee
of paper plan and what the piecf
paper plan is, is that you kindf
just count up all your expenses.
So my mortgages 2000, my rent is this amount,
my car noticed this, that doesn't work
because we got a factor in inflation.
So if you need 5000 a month to live off of,
each year is going to take more and more
and more money to live that same lifestyle.
So if you living off 5010 years
from now it might take 10,000.
To live that same $5000 lifesty.
So you have to work with the financial
planner who can kind of factor n
all the what ifs. That can happ.
Inflation, Social Security,
running out, your pension going away.
But most people do it themselve.
No, no, you need to,
because we want to enjoy retire.
That's the whole point.
To enjoy retirement,
not worry about money.
Right. Exactly.
So do all that now.
So what would you say to those t
have spent years kind of pinchig
off pitching that money out?
Yeah, so that's called the 4% r.
So the 4% rule is like whatever
amount of money you have,
Let's say it's $1,000,000.
If you take out 4% a year,
it should last forever.
So 4% of 1,000,000 is 40,000.
That plan only works when
the markets going up.
If the markets going down and
you're pulling money out,
you're kind of double dipping.
So now you got Social
Security about to run out,
pensions may be running out and you're
pulling money out of your 401K.
In a down market,
that's not a recipe for success.
No, no, okay. That's why.
Working with financial advisor,
getting all that stress and makg
sure the numbers are right.
So I'm not a numbers guy.
You're the numbers guy.
All right. Thank you, Tavo.
I appreciate it.
For you at home.
If you like to learn more about
preparing for your retirement,
new Perspective Financial
Solutions has a great offer.
Tavon wants to help protect and continue
to grow your money while also helping
you create a reliable income st.
So right now for the first five callers
with a portfolio of $100,000 or greater,
they are offering a complimentay
retirement income plan just for.
This will allow Tavon to sit don
with you personally or schedulea
call to make sure you are on the
right track for successful retirement.
That number to dial is
240-335-8366. Again, that's
240-335-8366.