Commentary contains opinions and analysis that are provided machine muscle went for informational purposes only. And should not be used the primary basis for investment decision. Please consider your individual investment objectives and results -- before making investment decisions Donald strategies discussed may be suitable for. Securities advisory services offered through BS our financial services are registered investment advisory number -- by UN RA MS IPC. Gentlemen invalid while Pelosi is not owned or controlled by -- our financial services it. Guess our financial services think is not affiliated with -- -- 37 -- And. It's time for retired -- With your host certified financial planners chains sold them. Life doesn't stop -- retirement change will guide you in making informed decisions about retirement investments maximizing Social Security. Protecting your family and harder to this day. Shame. -- -- -- -- is -- shame Sullivan and you're looking Jewish tires that go. This -- the so dedicated to helping investors. And especially retirees. Who were faced with this next chapter in life and how -- you do realize that our office -- -- permanent on this show. We cannot see retirement as the end of the race and that's what we call retire certain go because we see is the beginning. The beginning of the next -- realize that you finally have the time. And hopefully -- help a little bit more money to go do those things you're supposed to do. Again my machine -- I -- a certified financial planner professional. Here in Austin, Texas and for nineteen. Wonderful years. I have been helping -- seeing individual investors like yourself. I'll make better investments that decisions when it -- your money especially as you gear up for retirement. And I really wanna make sure your voice and just silly mistakes. They can really cause you take a pay cut in retirement there's a lot of things that regular folks if this is something. You're thinking about right now if you're within what I call the retirement red zone if you're at three to five years before retirement or -- in retirement. There's a lot of stuff we got to figure out. You need to know exactly what you need to be doing to maximize your income. And what does that mean first of course what kind of -- decisions I can name need to make -- -- of security sources should be making. And of course what kind of investment should be making and more importantly what Tibetans should I avoid. Folks that this is something you have not put together in a plan in writing and this is not something you do in your head. This is not something you rely on your style that they I think here she's got to figure it out this is some Q what are theater in writing. And make sure we're tracking and monitoring and staying on course the -- -- it that's that you haven't done yet you'd like to do that I encourage you they're. Some simple ways to get started go to our website -- tires that go. There is now only some great articles from calculators. There's also just the place think just a little question mark that says hey that's well and that's why a lot of the questions what do I do about that's -- -- about that. That's where we got a lot of questions for today's show a lot of folks -- last three weeks have been asking shame when it comes to retirement. Things a lot of you'll bring going to the website using the tools. -- but they're still not sure where I began. What the generally acceptable number that I should be able to plan on spending in retirement. And there's different ways you'll look at it they say gross how much tonight you know should I anticipate spending. Vs another way is how much do you think is a reasonable amount I should be able to withdraw from my portfolio for the rest of my life. I eat should I deal with the 500 grand should take 4% a year six for sitting here. 12% year I don't know we'll talk about that a little bit. And I also wanna think a number of people Deidre. And -- way our slash west Austin. Sandra over a lake where I also think you equate things like we're really. In some wearable quite a number -- listeners in the liquid area and Scott in Austin. Got to know what part down here and but I'm -- to listening. Am a lot of their questions dealt with also living trust. There's a big especially research in early retirement world. There is there a lot of topic others a lot of people there's a lot of professionals. Who. I mean swing through retirement the Destin there is selling living trust that the biggest they -- planning document or did they play technique. We're talk about what he should or shouldn't the pros and cons of that vs the well. And of course whether -- just estate planning in general folks this is something else that you have not but this plan together if you do not have a will you're not sure. What happens when someone gets -- or someone tosses the way. I'm gonna tell you I've put together so many retirement plans. Our help people put the other retirement plan. Only to find out that they did not have their foundational piece that documents in order and what I mean by that foundational there's no point and planning a life. And find out that when he passes away half his money goes to his kids from another marriage whoa hold we we play announcement take care meet the rest of life. Or each other. And maybe that was his intention to but maybe just didn't understand that that's not the way it works when it comes -- some legal issues until we're gonna cover the pros and cons. Who will oversee the living trust and whether or not it's right -- you folks I'm so glad you're here and I would remind you as we -- summer where study to be here every Sunday at 1 o'clock. Sharing ideas like this to help you make better investment decisions they get the most that a retirement. Forget mr. -- felt -- bush be right back. So we're gonna figure. How much can I really thin and then retire. Retiring soon I think you have a number of critical decisions to make -- affect the rest of your life. -- choices health insurance Social Security income strategies. Get your answers and plan started today decent pitching -- -- at Belle haven well dot com. And tune in every weekend for retire said go here on talk thirteen seventy. That's no money. Welcome back too -- should go with -- so yeah once again -- shame. What about folks Jane Sullivan and thank you thank you again for listening to retires they go as a reminder we're here every week 1 o'clock. On talk thirteen seventy. By this week -- also remind you if you have questions. Go to our website retires or go or just give us a call 512785. 98765. Point 27859876. You know I found that no matter what we're talking about. You may have a question that's really out of your mind that -- nothing to do with today's topics are those the kind of things I wanna hear about by the way it's typically from questions from our listeners that we decide what's best for topics for weeks to come. Of course a lot of questions and topics the questions -- becoming a lately really deal with how little I know how much second spend in retirement. Now I encourage you vote does some really big deal of respect if you have not retired yet. And I tell you while you're working. You can make a lot of mistakes and I can tell you ever seen one of us has done it replacement too much maybe impulse buy. But that's OK can we could run out there and fix it by earning more money. Can get through some lean times paying off them accrued -- whatever may be. But when you retire. The inflows. Ideally -- your your employer subsidy checks when he steps on up. -- what do you do to fix those problems I might tell you a really really mean this a lot of us are not good with the word budget. I think they can they they put it up right there next to dental visit. But I would encourage you -- budget is necessary. Because a lot of our personalities to come out when it comes to spending. A mentally I've met a lot of thousands. Who I don't stick to a budget and end up spending you'll make make lots of small little. Impulse purchases that can record budget. Tons of little stops between every destination their attitude might just seems the fought their -- hold their pocket. And that I have other clients. Who don't they're very disciplinary chemists they don't spend my and a lot of little things at all but the -- come home by boat. That was a part of a plan -- they're now that's that's equally about a master which is worse. But especially if your married. You have a responsibility. To how effective and sit down visit because those personality types don't stop. Matter of fact I know a lot of business people. Who I almost think it's part of their rhythm to go buy things to get themselves kind of behind the eight ball. So they have to work harder they get themselves -- -- -- that's just some kind of weird push pull system they used. But you've got a break. Once you start to move towards retirement because you do have a responsibility to live within a certain within your means and your responsibility yourself. Two be a good example. Now when it comes to. How much do you spend I'll tell you there's so there's some easy places to get started these are by no means the rules they're just kind of ruled that the them I I still think. You put together a financial plan that he tells your your that's exactly diesel for your life. Some people like you the seventy or 80% rule. We just -- basically they take -- you make now and so when you retired parliament seventy to 80% of that so let's just -- just for round numbers but -- you make a hundred grand. You could -- it live on seven -- Why. Well because first of all you're not saving anymore. But when you're saving if you made on a grand you're saving right so you're saving even 10% that money you don't save anymore and I appointment in -- A lot of people also find out that when they stopped working. A lot of expenses go away. Maybe if you had to drive a lot you do your gas bill goes down may be had to buy expensive clothing. Suits things like that that included dry cleaning maybe eating out once all the time. Well all that kind of go the way I feel a lot of exact -- we downtown executives. Walking around Tommy bahama shirt up so those are a lot cheaper. Now a lot of people just find that that there's they don't spend as much as they used to. At least not when there are no working. So that right there's a good rule of thumb at least to get started that you make on a grand you're gonna -- -- around seventy with. For everybody it's different. If there well and of course what will do is used to track would look at what money's coming in. And was to track down and Philip the F those security that amounts continuing your spouse to be 30000 dollars so you need 40000 dollars. So the rule of thumb is 4%. I'm not saying it's. And by the way again I can and I cannot be clear I don't believe anybody -- -- these rules exactly. Before percent as a goodwill of the on this as well on these 40000 dollars to fill the -- I got thirty bank covenants of security I need forty -- get to seventy. Then how much to any to have enough that -- 4% rule with a 4%. Palm of a million dollars -- 40000 dollars. Most are -- half have a million dollars up then we probably need to figure out how to reduce what you neat. And can I tell you a lot of people find that there's a gap there's what I need and what -- vs what I -- And the number one expense when we break it down that really directs a lot of retirement plans is debt. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That -- -- you brought home you didn't pay it off. So I'm any -- one of the big -- next that's a lot of people got to go through. As we like the lineup all those debts because a lot for a lot of you are still working the that. You can quit is to those debts are paid off that's really the rule the only way you can reduce how much you need to spend if we stop paying the bank. And so I would tell you the first by atheists are a lot of people like to knock out the high interest the first. I actually like there's any Dave Ramsey is off on the station I'm a big big fan of his snowball approached the soap opera says line up all your debts. And you pay off the little ones first. And you can see it took to build momentum and then take the payments that you are making to the small that. And you add it to the next biggest one and the next biggest one and you get some momentum. Knocking debts off I don't care it's a small credit card -- -- a student loan you're still carrying around our maybe it through loan for your kids college. And then get some momentum but working towards typically the largest debt which is to put your mortgage. Folks what you start to feel that way. One now what you get offense. You have a budget -- organized you have a sense of how much you can and can't stand and it's not all -- stone -- -- -- bread water there's budgeted entertainment and things like that. But for so many people who are so worried about what do I have enough to retire how much can actually spend. I'm gonna tell you most the time when really -- with them I find after spending very little on themselves. Most of the money they make goes to taxes and then a -- to -- in -- And that real hurdle if you need to actually visualize. The hurdle between you and -- -- retirement. Is those debts so if you look at if you look at port -- maybe put together a plan put together a budget that's part of our process here. I'm encouraging visit us -- retires that go you can also find my company website Belle haven wealth. Dot com will you get there again there's articles calculators. Or just give me a call and we can start the conversation find out where you are where you're trying to get by win. And Steve we can't put a plan in place to help you make sure you're on track folks I'm excited about this this is exactly why we have this showed assure these ideas. -- -- -- to go forward -- -- commercial we come back for a talk about a foundational piece about retirement plans and that's good estate planning. But you will or living. We'll be right back. Retiring soon I think you have a number of critical decisions to make double affect the rest of your life. Pension choices health insurance Social Security income strategies. Get your answers and plan started today this of switching Sullivan at Belle haven well dot com. And tune in every weekend for retire said go here on talk thirteen seventy. Welcome back to retire said. Go -- -- Sullivan. Once again your shame. Welcome back to the same thought eulogies were. Go for the break we talked about. He I need -- will -- a living trust this is the big topic I hear a lot it's a really big in the retirement community as a lot of people start. People. Redo some of state planning. Find out that you will maybe a little outdated. And there's a lot of people who promote living trust -- so there's a lot of people -- finally have a bias against dump. So let's talk about that now before I before I go too far big disclosure I'm not us I'm not a state planning that the attorney. We were under Smart enough to be dangerous but I do work with a lot of board certified are -- planning attorneys here in Austin. And I want to encourage you. That if you do not have a well if you do not have -- you know if you're not sure you have the right thing one thing that I'm very proud of as part of our process that Belle haven well the name in my company. That because we go through the due diligence process we kind of get to organized. The attorneys that we work with will visit with you for free they'll look at -- -- doing and find out you know what you're doing the right thing -- fine. Or may be should update you well or if it's a different situation you might be living trusts. That's what I would encourage if that's something you know that's in the back your mind. That maybe we. Now before and that reported to us for there also one thing before. I'm glad to have a conversation about should I have a will or a living trust. What I am more worried about is the number of people who listen to both sides of the argument and there's an argument. And they do not think. There is almost 60% of people when I think people I mean men. That do not how will they don't have anything. And the memories and they don't have anything in writing is because there is -- going assumption that I'm a leave everything to my surround himself. That's when encourage you to that in Texas if you don't have a well that Texas has the will for you. And it probably if you have been divorced ever given his shoulder and if you have any assets that came that you had before you got married. It is likely that not all of your -- we'll go to your -- spout off. -- if that's your plan and Europe there in your district but I Wallace you know that at minimum I don't wanna get too far down an argument about whether or a living trust is -- -- well. And Craig confusion people -- doing anything. I would argue frankly at the -- Willis a will. Which is kind of -- next step up. Just that -- who gets all my stuff when I -- But it if you threw some -- probate that's really -- -- -- -- -- and they say shame Sullivan stuff. Did the only death. Make sure those -- paid off and then distribute all my stuff to my beneficiary expect that it very simple it's also public process fellow faeda. So if you're a private person. Don't really want your. Family laundry out there airing in front of the whole city state had they Texas a city of often than you might want to consider is that do more private. But that's what it is. Com. I would tell you that if you're younger period thirties or forties the fact is your life to change so many times. A Willis typically cheaper to. To -- create a living trust and so you might wanna read you probably would do better with a well especially here in Texas and Josh concedes a retired deploy up to get me well anyway. But as we get a little bit older as we get a little bit more more out that things go a bit more complicated. That's when the living trusts or Cicero Stepan and so that really explain what a living trust does. Let's -- you think about like creating a company. I shouldn't Sullivan create the Sullivan's company would call the Sullivan. Living trust. And I've put give all of my stuff to the company. So -- so I don't drive a car drove the company car that the trust them I don't investments Seinfeld and along as investment. The company has all the investments. And -- and then I name myself the CEO of my little company called a Sullivan living. Trust right that's that's all -- you've given away all of your stuff to your own company and you've named yourself as the CEO. Now you should die there's really nothing to probate is an average of oil much that extra. Secondly what's also nice about it in the legislature any company. I trust provides for a lot of successor ship but. If it's just like your company if you get sick he probably have a vice president in charge that steps in your place keeps the lights on right. -- the same -- -- here by get laid up somewhere my wife is the trust the the co trustees or the new VP of the Sullivan's family trust. As she continues to manage the assets or to be an elder child. Whatever whoever you want and and you can just like you name any company. But more importantly you know that there's some sense of what's gonna happen what are your what are you sick -- -- he passed away. I'm you know how things are gonna go down. I can also tell you there's a great since the peace that a lot of people to take in a living trust. Because there's still this fear that if I die things are gonna go the way I thought that war. People find out that they have a -- -- -- An ex wife has an ownership on it. Aren't you may have children from differ marriage and outcomes of the confidence is all gonna go to places that you want to go. But when you create a living trust you go through this distribution process while you're alive. If something's not in order you can fix itself obviously that's not sure if you passed away so there's a huge amount of benefits. Those distributing your stuff to a living trusts. And then you have a sense of still running ultra dated it fills the same. In the lot I feel a lot of you'll take some great confidence. If you have yourself in special situations if you have children who probably not mature enough to maybe inherit money just yet. You can all all or maybe -- single maybe you're older you're aware though are -- -- You wanna make sure that someone's in place that can manage your affairs if something should happen to you. And secondly after you pass the way you want your mind to not go to people out right. This stay in the company or stand the trust but send them a check accompanied check for the rest their lives or maybe until the little older mature enough to manage the money. You can do that with the trust you can't quite do that as well with a well. And so by all means election on Texas friends on both sides of the argument both of his estate planning attorneys board certified if -- -- and who love. Living trust some -- Tuesday you know what a level well. I would do not think it's different for everybody. And I want you to know though it is a critical part of your plan if you do not have these answers employees if you're not sure -- -- -- -- are returning. If you're not sure hey I know I'm married to somebody who was married before and I know there's other children out -- care. Q I have a great sense of confidence what happens when someone gets -- and don't -- the way to I didn't know where those documents are. I'm encouraging give us a call. You know call 5127859876. Or go to our website -- that -- -- lead -- to our company page valid and well. There is articles there's podcasters. Wary of adding videos now. But more importantly you can just give us a call our reach out. And find out what should I be doing what a great place to get started. That most important thing I feel -- you don't get this done because there it's just too it's too big. My hope is let's get something started and will change along the way as our life changes. -- I hope that was helpful unless they think you so much for tuning in there remind you we'll be here every Sunday at 1 o'clock John -- Thirteen seventy have a great day. Commentary contains opinions and analysis that are provided machines -- for informational purposes only. And should not be used in the primary basis for investment decision. Please consider your individual investment objectives and results as before making investment decisions Donald strategies discussed may be suitable for all. Securities advisory services offered through BS are financial service is a registered investment advisory -- -- by UN RA MS IPC. James Coleman invalid while Pelosi is not owned or controlled by BS our financial services it. Because our financial services think is not affiliated with -- -- 37 -- area.