When it comes to saving for retirement,
what you don't know can cost you
financial professional Scott Braddock
from Scott Braddock financial
joins us now with the biggest
misconceptions of retirement.
Scott, thanks so much for being here.
We always appreciate it.
If you've got questions,
you can text them to us now at
336-379-5775. A question.
A lot of people are probably wondering,
Scott, what do you tell people
who say that they're too young
to think about retirement?
You know, I hear that one too
often and and quite frankly,
that is probably one of the
biggest myths out there.
In fact, the the bigger,
longer runway of time that you can provide
yourself to prepare for retirement.
The best you know, we can always,
as financial professionals,
help folks out in the last minute
of retirement.
But it's so much better if you take
time to actually put a written game
plan together that outlines what your
retirement goals and objectives are.
That'll help you stay on track,
and the more time you have to focus on those.
Goals the better chance you're actually
going to achieve that desired retirement.
I don't know about you,
but so I'm in my mid 30s right now and
I'm constantly thinking about whether
I am saving enough for retirement.
Is there anything that you can put
my mind at ease with just knowing
where I am in my age and in my career?
And as far as saving for retirement?
Well, that's great that you're saving.
Unfortunately, there's a lot of folks
these days, they're just not saving at
all what I can share with you is what I
share with my clients, and that's you.
Want to look at putting away 12 to 15%
of your income in a retirement plan
such as a 401K with your place of work.
And if that employer offers a 401K plan,
a big tip here is make sure you're
contributing enough so that you're
receiving that employers match chat.
We don't want to leave any of that.
Me on the table,
so if you're doing that and you're
putting money away consistently and
taking advantage of dollar cost averaging,
you're doing the right things.
Can we have more than one
type of retirement account?
Also, this would be another
misconception where folks feel that
and believe they can only contribute
to their 401K plan at work and this
is simply not true and another myth.
In fact, we can contribute to multiple IR.
A tax deferred accounts outside of our 401K.
If we would like to now there are certain
limits on how much you can contribute
and and there's some income thresholds
that we have to pay attention to as well.
And I also want to mention the Roth IRA Ray.
This is a little different, but it's on.
Valid option as a retirement vehicle.
The big difference is we're going to
pay taxes on the money as it goes in,
but then it's going to grow tax free.
We can take from it tax free the way
that I love to share this with my
clients is that you pay tax on the seed.
However, you're not required to
pay tax on the harvest.
Some might think that your
expenses decrease in retirement.
Why isn't that always true?
Right, so there's a.
There's another myth right there.
It also reminds me of the idea and
the notion that you have to reach
or achieve a certain dollar amount
of money saved in order to retire,
and that's simply not the whole story, right?
Everyone's financial situation
is unique and different.
In addition to that,
everyones desired goals for retirement
or unique and different as well.
So the specific amount that
you need to retire on,
you really need to sit down
and kind of map out what your
retirement is going to look like.
Uh, you know,
are you going to create a budget or are
you going to create a spending plan?
All those factors come into
play so you know exactly where
you stand in your situation.
When it comes to retirement.
You say a common misconception is Social
Security will provide enough income
in retirement, but that's not true.
Well, it's it's not true.
What folks need to know is that so security
usually covers about 40% of that income,
while folks were working and there
we go again. For some folks,
that's going to be plenty, but I would.
I would venture to say for most folks,
that's not going to be enough,
so we're going to have to find
some additional income sources.
We know pensions have
faded away by and large.
So we've been left at the save, invest,
and then ultimately find a way to turn
that savings into income that won't
run out before we run out of time.
I'm a big fan of education chat.
That's why I teach at the local
universities here in Greensboro.
And matter of fact at class last
weekend at Guilford College,
and I would really encourage
folks to get out and learn what
you can about Social Security.
The more you know about what you can do,
you'll know what you should do,
and you're given the situation.
I'm sure there are plenty of people
who wake up in their 40s or 50s.
A shoot I forgot to save for retirement.
What can people do in that scenario?
Well, you're right. Matter of fact,
I stumbled upon a a survey if you will.
A report not too long ago that showed
that 1/3 of folks turning 50 this year
have saved less than $25,000 and and and
certainly that is concerning one idea
that I would share with you is if you
haven't set up a savings account yet.
Try to have money automatically
taken out of your paycheck,
because if you don't see it,
it's very hard to spend it.
With you there one more
before we go to break.
What can we do to make sure that
we are prepared for retirement?
Kind of a broad question.
Well, really you know what I do
with my folks is I use a five step
process that helps me to number one.
Discover what their unique vision
of retirement is, and then what
we do is we put things in writing.
I believe that's the the real idea.
If we want to achieve successes,
have a written game plan in place.
So me with a financial professional
that uses a well thought out
thorough process so that you know
all of the solutions and options.
Quite frankly that are out there to help
you achieve your goals and objectives.
Some great advice from Scott Braddock.
One segment down, one to go.
We do appreciate you being here.
We're going to take a quick break.
Keep texting us your questions
and we will be right back.