Jeff Massey, Nashville, Engineer discussed on Massey on Money


An RV was detonated in Nashville Christmas morning are retired Navy Ordinance Disposal officer describes how the investigation may proceed. Either The FBI or are the Nashville State crime Laboratories will have this device. Reconstructed fairly quickly, and they will. They will identify any Edna or any any other material left by the bomber. And I don't think it'll take long before they had somebody in custody. Bob Cassini on Fox and Friends. Two new studies show how covert survivors fare following recovery from the disease, one from Oxford University in England and the other by the U. S National Cancer Institute. Suggests that people who recover from covert 19 can have immunity to the virus for up to six months boxes. Evan Brown America is listening to possible. Use radio 9 21 old 47 FM. Massey on Money is on the air and online visit Massey on money dot com. Glad to be here with Jeff Massey, the alliance for her lifetime Incomes protected Lifetime income study. It shows the number of households that have ah source of protected income, such as a pension or an annuity. It's on the rise, and that's a great thing. This study, though it also shows on Lee about a third of pre retirees of calculated their monthly expenses, their financial needs and retirement. It also says many are overestimating what their retirement savings will cover. And it goes on to point out that three out of four Americans still don't have a specific financial plan. So Jeff let's start with Why It's so important to figure out your monthly expenses before you retire. How do you approach that? Do we consider that the foundation of our plan because the plan has to have a outcome in mind inside. Oh, just grow our count as big as that can be. We need to know how much you need and to see if the money that we're working with is realistic to get there. So we have a very simple form that we have. We called the income Gap assessment. And it's It sounds fancy. It's not. We try to keep things very simple. And here it isn't in a nutshell. We don't need our form. But if you would like to get a copy of the income Gap assessment tool Sudan emailed info at Mass and associates calm and we'll be happy to email that up to you. And just kind of give you a rough overview of what it is. All we ask you to do is look at 12 of your monthly statements from your bank. The bank will total The dollar amounts of all the checks that you wrote that month. Now with you hand right Auto pay, you know, directed to be sent out at a certain time doesn't matter. It all falls under checks written for that month on my bank also includes any debit card usage in that same total, so I only need that one total. And we want people to do a 12 month cycle. That way. If you're paying anything on an annual ized basis, you'll catch it. Compared to let's say you just a January February march and then multiply times. Four. You might miss the manual payments, so we just You know how long it's gonna take you to add up 12 numbers. It's not that hard. And that shows you what your lifestyle expense is now, most people that we may with have no idea what that is. And every time I talked about this particular topic, I think back Many years ago at an engineer, and I said, Give me your best guess. What do you think it is? He said. Well, I think it's probably about 4000. So you know, he took the form home. He sent an E mail into the office and we looked at it, and his expenses he claimed were over $7000 a month. Now that's from an engineer. Now they're usually pretty good with numbers. So I was kind of taken aback by that. And then a couple days go by. He sent another e mail. He said. Oh, wait a minute. I forgot. We put in a swimming pool last year. So you know that was we'll take the house. Our expenses are about $6000. So even if it was netting out to 6000 he was office estimate by 50%. No, You can't make a plan that way. So we asked you to do is add up 12 numbers in your checking account or from your statements, and that gives us a rock solid number of how much you have spent over the prior 12 months. And from there we can then lay out a plan and say, Look, this is how we're going to build the plan. So that will take your expenses of today. Inflation, adjust them going forward. And we can show you a way to you either Create an income strain as we talked about in prior programs where you can be guaranteed a lifetime income. Backed up by the financial strength and claim spank ability of insurance company who pretty much owned that retirement planning market If you will. Indoor investments, and we blend those together so that you have a good sense of what it might look like in the future, and it all starts. The foundation, if you will is knowing what your expenses are. And most people can figure that out in about 10 or 15 minutes, So why not do that? You spend less time doing that and figure out where you're going for dinner on Saturday night? It's an easy thing to do. I like the sound of that sometimes deciding where we're going for dinner. Sometimes one of the most likely discussions. My husband and I have sure Yeah, you know, you know, I have. Ah, have a policy. I just turned to my honey. Sorry. Where do you want to go? Just easier, You know, and You know, I just find it a little easier that way, because to me, I'm not overly fussy Every now and then I'll pick a spot. But, you know, I just say, Where do you feel like going when they will go there? That's all. That's right. But put the ball back in her court like that approach. All right, So another key finding from the study we've been discussing today is that many people, Jeff Seemed to be overestimating what their retirement savings will cover. What should we do? How can we make sure that we're not making too many assumptions with how long our savings will last? Well, instead of just making assumptions, or like a gut feeling that you think you'll be okay. We have a very sophisticated high end software where we can put in Pretty much anything to do with your finances relative to car payments when they're going to end mortgage ones that that's going to get paid off. We do inflationary adjustments. We can do investment assumptions, and we put that all into the software. It's a very extensive software. And it uses a Monte Carlo assumption going forward, and that is simply where the computer randomly chooses rates of return for the market. Both good years bad years. And it will randomly select that from your current age out to age 90 or 95, or whatever age that we put in there for life expectancy, and it will do that. 1000 different times. And then we will get a report that says Here is your probability of success on a scale of 1 to 100. The system says If you're over 82%, you're okay. We like it to be 90 95% or better because we just want to make sure that we're going to be okay. That everything will work. Now, if we put the numbers in, and we have a very low probability of success, well, what that does is, it tells you that perhaps you need to make some changes. Either. You need to ramp up your savings until.

Coming up next