SATURDAY.
SATURDAY. THAT'S WHETHER TO PLAN A HIKE
OR SOMETHING LIKE THAT.
>>> TIME TO TALK ABOUT MONEY.
WE HAVE KYLE O'DELL HERE, OUR
9NEWS FINANCIAL EXPERT.
>> KIDS ARE DYING THEIR EASTER
EGGS, MAYBE GOING OUT TO FIND
THEM AND WANDER IN THE HOUSE,
WE ARE TALKING ABOUT A
DIFFERENT KIND OF EGG FOR THE
PARENTS THAT THEY NEED TO
PREPARE FOR.
PREPARE FOR. >> THAT'S RIGHT.
WE NEED TO SAVE MONEY AND HERE
IN DENVER IT'S BECOMING MORE
AND MORE DIFFICULT FOR FAMILIES
TO RETIRE.
TO RETIRE. SO MANY FAMILIES HAVE MOVED
HERE, THE HOUSING PRICES HAVE
INCREASED, THE COST OF LIVING
HAS INCREASED AND SO WHEN YOU
LOOK AT PROGRAMS LIKE THE STATE
RETIREMENT PROGRAM PARA, THEY
HAVE PUT A FREEZE ON COST OF
LIVING INCREASES AND SOCIAL
SECURITY IS NOT KEEPING UP SO
IT'S BECOMING MORE AND MORE
DIFFICULT FOR FAMILIES TO SAVE
AND HAVE THAT NEST EGG, YOU
KNOW, PROVIDE THAT RETIREMENT
FOR THEM.
FOR THEM.
FOR THEM. >> THERE HAS TO BE TRICKS THEN
TO GET TO THAT NEST EGG POINT.
HOW DO YOU GET STARTED?
>> RIGHT.
>> RIGHT.
>> RIGHT. THE KEY IS, NUMBER 1 UP FRONT,
MAKE SURE YOU PAY YOURSELF
EVERY MONTH.
EVERY MONTH. I DON'T CARE, IT'S NEVER TOO
LATE TO START SAVING BUT YOU
HAVE GOT TO START SAVING,
PUTTING MONEY AWAY.
SOMETHING TO CONSIDER FOR SOME
FAMILIES IS TO PAY DOWN THE
MORTGAGE AT SOME POINT.
BUT NUMBER 1, NUMBER 1 ON THE
LIST IS TO HAVE A PLAN.
AND WE TALK ABOUT IT ALL THE
TIME.
TIME.
TIME. WE
TIME. WE LOOK AT THINGS LIKE SOCIAL
SECURITY.
SECURITY.
SECURITY. THERE ARE HUNDREDS OF WAYS FOR
A MARRIED COUPLE TO FILE FOR
SOCIAL SECURITY.
SOCIAL SECURITY. MOST FAMILIES ARE NOT AWARE OF
THAT.
THAT.
THAT. THAT'S A VERY COMPLEX AREA.
YOUR INVESTMENTS, AS YOU HEAD
INTO RETIREMENT, SHOULD YOU BE
MORE CONSERVATIVE OR MORE
MODERATE WITH THOSE
INVESTMENTS.
INVESTMENTS. TAXES, THOSE ARE PROBABLY GOING
TO GO UP HERE IN THE NEXT
SEVERAL YEARS.
SEVERAL YEARS. AND THEY WILL PROBABLY GO UP
SIGNIFICANT SO WHAT'S YOUR PLAN
TO OFFSHORE THAT?
HEALTHCARE EXPENSES ARE GOING
UP.
UP.
UP. FAMILIES CAN BE SPENDING AS
MUCH AS 10, 12, $13,000 A MONTH
FOR CRITICAL CARE.
SO IF YOU DON'T HAVE A PLAN TO
HELP OFFSHORE SOME OF THOSE
RISKS AND CHALLENGES THAT
YOU'RE GOING TO FACE, YOU COULD
REALLY HAVE SOME ISSUES DOWN
THE ROAD AND THAT'S THE NUMBER
1 AREA.
1 AREA.
1 AREA. THE ONLY THING I SEE FOR MOST
FAMILIES, THEY JUST HAVE A
DRAWER FULL OF STATEMENTS.
THEY DON'T HAVE A PLAN AND WE
HAVE TALKED ABOUT IT.
IF YOU DON'T HAVE A PLAN, THEN
YOUR STRATEGY IS HOPE AND HOPE
IS NOT A STRATEGY THAT'S GOING
TO DELIVER THAT OUTCOME THAT
YOU'RE LOOKING FOR.
>> YEAH.
>> YEAH.
>> YEAH. I FEEL LIKE A LOT OF PEOPLE TO
GET CONFUSED -- TOO GET
CONFUSED WHEN YOU TALK ABOUT
HOW MUCH MONEY YOU REALLY NEED
TO RETIRE ON.
WHAT DOES THAT LOOK LIKE FOR,
YOU KNOW, A COUPLE?
>> RIGHT.
>> RIGHT.
>> RIGHT. MOST FAMILIES -- HERE'S A BIG
MISCONCEPTION HEADING INTO
RETIREMENT.
RETIREMENT. >> $1 MILLION.
>> RIGHT.
>> RIGHT.
>> RIGHT. >> I'VE HEARD THIS BEFORE.
>> RIGHT, YEAH.
>> $1 MILLION.
>> EXACTLY.
>> EXACTLY. RIGHT.
RIGHT.
RIGHT. A
RIGHT. A BIG MISCONCEPTION HEADING
INTO RETIREMENT FOR MOST
FAMILIES, YOU HAVE BEEN TOLD
OVER THE YEARS THAT WHEN YOU
GET TO RETIREMENT, YOUR TAX
BRACKET IS GOING TO BE LESS,
YOU WILL BE IN A LOWER TAX
BRACKET.
BRACKET.
BRACKET. I HAVE YET TO HAVE ANYONE EVER
SIT DOWN WITH ME AND SAY, KYLE,
WHEN I RETIRE, I WANT A LOWER
STANDARD OF LIVING.
>> TRUE.
>> TRUE.
>> TRUE. >> THAT DOESN'T HAPPEN.
>> YOU WANT TO DO THE SAME
STUFF.
STUFF.
STUFF. >>
STUFF. >> YOU DON'T WANT TO CHANGE
ANYTHING.
ANYTHING.
ANYTHING. >> IF NOT MORE.
>> RIGHT.
>> RIGHT.
>> RIGHT. >> SO WHEN IT COMES TO HOW MUCH
YOU NEED SAVED, A RULE OF
THUMB, IF YOU HAVE A MILLION
DOLLARS, USUALLY OFF OF THAT
AND RETIRING AROUND 65, USUALLY
YOU CAN PULL OFF ABOUT 40,000
OF THAT OR 4% PER YEAR.
SO IF YOU HAVE 100,000, YOU CAN
WITHDRAW ABOUT 4000 PER YEAR.
AND INCREASE THAT EACH YEAR.
I KNOW THAT SOUNDS -- NOW WE
NEED A GLASS OF WINE.
>> RIGHT.
>> RIGHT.
>> RIGHT. >> PLEASE.
>> PLEASE. IT'S EARLY BUT --
>> YES.
>> YES.
>> YES. >> SO WHEN YOU LOOK AT IT, THE
RULE OF THUMB IS, FOR EVERY
DOLLAR THAT YOU HAVE, YOU CAN
PULL ABOUT 4% OFF OF THAT
DURING RETIREMENT AND THEN
INCREASE IT EACH YEAR WITH
INFLATION.
INFLATION. IF I HAVE 100,000, THIS YEAR I
CAN WITHDRAW 4000, NEXT YEAR I
MIGHT WITHDRAW 4000 AND A
LITTLE BIT MORE WITH INFLATION
AND WE INCREASE THAT EVERY
YEAR.
YEAR.
YEAR. THAT'S KIND OF THE RULE OF
THUMB, SO GO OFF OF.
SO WHEN YOU ADD THAT PLUS
SOCIAL SECURITY OR A PENSION
THAT YOU HAVE, THAT CAN HELP
YOU TO GIVE A LITTLE BIT OF A
BUDGET PICTURE THERE.
>> HELPS YOU THINK ABOUT WHAT
YOU'RE SPENDING RIGHT NOW AND
IF YOU WANT TO MAINTAIN THAT
QUALITY OF LIFE, IS THAT GOING
TO BE ENOUGH AT 4%?
>> RIGHT.
>> RIGHT.
>> RIGHT. AND SAVING, I HAVE NEVER HAD
SOMEONE SAY, KYLE, I HAVE JUST
SAVED TOO MUCH MONEY, YOU KNOW.
THIS IS AN ISSUE.
>> WOW, I WISH I HAD THAT
PROBLEM.
PROBLEM.
PROBLEM. >> RIGHT.
>> RIGHT.
>> RIGHT. NO ONE HAS EVER SAID THAT
EXCEPT FOR MAYBE MR. BUFFETT.
WE NEED TO BE CAREFUL ABOUT, WE
NEED TO SAVE.
YOU HAVE TO PAY YOURSELF EVERY
DAY.
DAY.
DAY. SO
DAY. SO WHETHER IT'S TAKING
ADVANTAGE OF THAT 401(K),
ESPECIALLY IF THEY HAVE A MATCH
AND DIFFERENT THINGS IN THERE,
BUT PAY YOURSELF EVERY DAY.
SET THE EXAMPLE FOR YOUR KIDS.
HAVE THOSE CONVERSATIONS.
UNFORTUNATELY IN SCHOOL THEY
SPEND TOO MUCH TIME, I BELIEVE,
ON ALGEBRA TWO AND GEOMETRY AND
NOT ENOUGH ABOUT PERSONAL
FINANCE.
FINANCE.
FINANCE. >> I WOULD AGREE WITH THAT.
>> AND MORTGAGES AND HOW DOES
THAT WORK.
THAT WORK. MOST OF US HAVE A HARD TIME
SPELLING THE WORD MORTGAGE, LET
ALONE KNOWING HOW IT WORKS.
>> YEAH.
>> YEAH.
>> YEAH. >> SO TRUE.
>> SPEND TIME, TALK TO YOUR
KIDS.
KIDS.
KIDS. KYLE, WE APPRECIATE IT.
>> THANKS.
>> THANKS. >>> WE WILL BE RIGHT BACK.