Retirement

Retirement

Checklist

Maintain healthy weight, check-ups/screenings/preventative care, eat good food, control stress, sleep

Visit the Social Security Office and have your report sent to you-use a social security calculator to see when it will be most advantageous to claim benefits

Gradually replace appliances, house repairs with energy star, quality, easy to maintain
Maintenance Schedule
Bathroom/kitchen grab bars and safety rails, disability and safety standards at home

Have a budget
Take an inventory of assets

Get completely out of debt 

Emergency fund-six months in a money market

Max out monthly retirement contribution

Investments that will support basic standard of living in retirement (Social Security, Annuity, real estate rental property, 401k, IRA, Roth)

Work on getting monthly fixed expenses reduced
Determine retirements needs
Square away health insurance needs
Prepare a will and/or trust

Garden/food storage/sewing

LIFE IS GOOD

Love the Lord and pay Him first

Invest wisely, consistent with risk

Find happiness in spouse, family and service

Enjoy the journey and give back

Invest in yourself and your family for education and missions

Save 20 Percent with 15 percent for retirement

Stay out of debt

Organize yourself.  Know your vision and goals

Operate on a budget.  Get really good at it.

Do good, be good, get better

AVOID

Auto and consumer debt-It stops growth

Free meal seminars

Email hot stock tips

Real estate flipping

Nothing down real estate

Timeshares

High trust relationships (church)

Asset repositioning-cash value life insurance

RETIREMENT PLANNING STEPS

1.  Catch your vision, set your goals and plans for what you want

Serve mission/callings, host Choate/Petersen family reunions every three years, Family History

Healthy weight, Luke healthy habits, good nutrition, exercise, sleep, reduce stress

Take classes, read standard works twice in next decade, read a book a week

Yearly family trips, road trips with Luke, host holiday celebrations/traditions

Stay out of debt, emergency fund, fully fund retirement, observe maintenance/repair schedule

Small business, rentals, investments

2.  Estimate your current annual income needs

3. Estimate your total retirement needs after inflation (inflation adjusted shortfall)

4.  Determine how much you have so far

5. Account for home

6.  Determine how much you will need and start today

Social Security

401 K, Roth

IRA's

Rentals

Small business

Investments

Choose assets which will earn the highest after tax returns to reach your goals

Invest in low cost, tax efficiently and passively in good mutual Index Funds ETFs for your asset classes

Check yourself regularly to make sure you are on track

Stewardship

Retirement Annuity 

Your plan for how assets will be distributed at retirement

Goal is to have sufficient assets for your lifetime to enable you and your spouse to live like you planned

Calculate a minimum acceptable level of retirement income, and annuitize that amount (if you have assets)

Calculate amounts from Social Security.  Determine minimum amount needed.  Take a percentage of assets at retirement to purchase immediate annuity to give you the minimum amount needed.

Distribution/disposition/decumulation

Begins after retirement

Plan as to how best to take distributions from remaining retirement and taxable accounts to minimize taxes and maximize availability of assets.

Distribution strategies

Set up a framework where you will not outlive assets

Take out maximum distribution of 3.6% of total assets each year or only take out maximum earnings from investments of previous year.

During years when income is less, use this time to move assets to Roth.

Retirement Planning Needs Spreadsheet

LT06

Priority of Money

1.  Free money-Match

2. Tax advantaged money-Roth

3. 529 funds, HSA (must be qualified expenses to be tax free).

Know the impact of taxes

Look to capital gains-defer

Earnings and tax to the future

Minimize turnover distribution

Replace interest income with stock dividends

Invest tax-free

Use the highest priority money first and then next highest, Max Roth and HSA

40 % tax deferred

30% Roth

30% Taxable accounts

Make a plan. to take care of your Facebook, Google and digital accounts, passwords

Write your life story and obituary

Plan funeral program

Purchase plots

Write will

Save at least 15 percent

Don't spend more than you need

Invest wisely, avoid investments that sound too good

Guard from loss

Own your home

Life insurance

Improve your ability to earn

Do not confuse necessary expenses with desires

If you desire to help a friend, do not do it in a way that brings their desire upon you.

There are many ways to help.  Don't do it in a way that restricts your time, money, energy or ability to care for yourself.

Live on 70 percent of what you make.

The Change Your Life Challenge 646.7

In Case You Get Hit by a Bus 306.9

It's About time 158.1

The Organized Mind 153.42

Putting your affairs in order:

- TOD = Transfer On Death deed if you own a home. Completing this document and filing it with your county saves your heirs THOUSANDS. This document allows you to transfer ownership of your home to your designee. All they need to do is take their ID and your death certificate to the county building and the deed is signed over. Doing this will avoid the home having to go through probate.

- Living Will: Allows one to put in writing exactly what you want done in the event you cannot speak for yourself when it comes to healthcare decisions

- Durable Power of Attorney: Allows one to designate a person to make legal decisions if one is no longer competent to do so.

- Power of Attorney for Healthcare: This document allows one to designate someone to make healthcare decisions for their person.

- Last Will and Testament: Designates to whom personal belongings will go too.

- Funeral Planning Declaration: allows one to say exactly one’s wishes as far as disposition of the body and the services.

- If the above documents are done, you can AVOID probate. If all the above is not done, you have to open an estate account at the bank. All money that doesn’t have direct beneficiaries goes into this account. You have to have an attorney to open the estate account. The attorney also has to publicize your passing in the newspaper or post publication at the county courthouse, to allow anyone to make a claim on your property. - It’s a complete PAIN.

- Make a list of all banks and account numbers, all investment institutions with account numbers, lists of credit cards, utility accounts, etc. Leave clear instructions as to how and when these things are paid. Make sure heirs knows where life insurance policies are located.

- Make 100% sure SOMEONE knows your Apple ID, bank ID account logins and passwords!

- Make sure you have titles for all vehicles, campers, etc!

- MOST IMPORTANTLY!!!! - Talk with those closest to you and make all your wishes KNOWN. Talk to those whom you’ve designated, as well as those close to you whom you did not designate. - Do this to explain why your decisions were made and to avoid any lingering questions or hurt feelings.

Hope this helps! Hope this lights a spark to encourage all your friends and family to take care of these things to make it easier for those we all leave behind!

My hope is that the above list at least helps you start an important conversation with your loved ones.

Retirement Preparation

1). Maximize Social Security

2) Make the most of Medicare

3) Boost 401 K and IRA balances

4) Invest in a Roth IRA

5) Maximize taxes before and after retirement

6) Cut costs and fees on investments

7) Get house ready to age in place and to have an ADU for rental income

8) Reduce cost of living to $5000 a month

9) Reinvent your life!

10) Plans for Luke

Plan on Living by Scott Peterson

As an example, divide a million dollars into 7 investment accounts.  the first 6 accounts are assigned to a segment, and each segment is responsible for providing income for a 5 year span. The 7th segment is the legacy segment designed for the heirs.

Segment one  ($222,526) gets a 1% return (variety of short-term bonds and other very conservative investments). Provides a monthly income of $3,801 for years 1-5 of retirement. Age 66-70.

Segment 2 ($219,221) gets a 3% return (Conservative investments).  Provides income of $4,349 for years 6-10 of retirement.  Target value for harvesting is $254, 650. Age 71-75.

Segment 3 ($176, 934) gets a 5% return (Conservative Growth). Provides income of $4,977 for years 11-15 of retirement. Target value is $291,413.  Age 76-80.

Segment 4 ($139,445) gets a 6% return for 15 years (Moderate). Provides income of $5,696 for years 16-20 of retirement.  Target value is $333,482. Age 81-85.

Segment 5 ($94,491) gets a 7% return for 20 years (Moderate Growth, equities). Provides income of $6,518 for years 21-25 of retirement.  Target value is $381,717. These equities portfolios should be diversified, inexpensive, index-related investments that contain large, medium, and small U.S.-based stock companies, as well as international stocks from various sized companies and from a variety of regions and countries. Age 86-90.

Segment 6 ($59,497) gets an 8% return for 25 years (Growth, equities). Provides income of $7,459 for years 26-30 of retirement. Target value is $436,717. Age 91-95.

Legacy ($91,443) gets an 8%return for 30 years of investment (Aggressive Growth). Target value a million dollars!

Segments 4, 5, and 6 are inflation fighters and must be invested in equities in order to keep ahead of inflation.

Harvesting strategy: The act of liquidating investments once they have reached their goal to lock in gains.  This strategy is used in a time segmented distribution plan.  The liquidated assets are then put into safer investments until they are due to be used to create income.  This limits gains in excess of goal amount, but reduces risk from that segment of retirement portfolio.

What to say when someone has died

I will be thinking of you and sending my love

At the end of life, what really matters is not what we bought, but what we built;

not what we got, but what we shared;

not our competence, but our character;

and not our success, but our significance.

Live a life that matters.

Live a life of love.

Tips for quality sleep:

1)  Stick to a consistent sleep schedule.  Establish a regular sleep routine by going to bed and waking up at the same time every day, even on weekends.  This helps regulate your body's internal clock and improves sleep quality.

2) Create a sleep-friendly environment:  Make sure your bedroom is conducive to sleep.  Keep the room cool, dark, and quiet.  Use earplugs, eye masks, or white noise if necessary.  Invest in a comfortable mattress, pillows, and bedding that support good sleep posture.

3)  Limit exposure to electronic devices:  the blue light emitted can interfere with the body's natural sleep-wake cycle.  Avoid using electronic devices at least an hour before bedtime.

4). Establish a relaxing bedtime routine:  Develop a pre-sleep ritual to help signal to your body that it is time to wind down.  This can include activities like reading a book, taking a warm bath, practicing relaxation techniques (such as deep breathing or meditation), or listening to calm music.

5)  Avoid stimulants and heavy meals.

6) Get regular exercise, preferably in the morning.

7) Manage stress

8) Evaluate medications

9) Limit daytime napping.