In case you missed it, I was a guest on the popular Personal Finance Hour hosted by Jim from Bargaineering and J.D. Roth over at Get Rich Slowly. Each Monday they spend an hour discussing a finance topic, chat with listeners, and take calls to answer questions. This week the topic was retirement. Given my background in retirement planning it was a good fit to have me on and discuss some of the common retirement planning mistakes and considerations for both the young and old alike.
While you may have missed the live show you can still play the episode at any time. You can find it on the Blog Talk Radio site, iTunes, or even use the embedded widget found on this page. Some of the highlights from the show talked about the biggest mistakes people make when it comes to saving for retirement. I say the biggest mistake is simply not saving enough. People often underestimate how much they really need to save or wait too long to start saving. It’s one of those things where time can either be your greatest asset or your biggest enemy. Use the time you have wisely and save appropriately and you’ll be in good shape. Let time slip away and you can’t get it back and it’s very hard to catch up.
So, if you’re interested in retirement planning this is a good episode to listen to. And of course, be sure to tune in every Monday as there are always good topics up for discussion on the Personal Finance Hour.
Author: Jeremy Vohwinkle
My name is Jeremy Vohwinkle, and I’ve spent a number of years working in the finance industry providing financial advice to regular investors and those participating in employer-sponsored retirement plans.
Hi Jeremey/Financial Smart - Thanks for the responses. Will check it out.
There's always one more buck to earn, so I'm just going to set an age, and walk away.
@Financial Samurai: I believe this article can assist you with the question that you have asked. http://blog.financiallysmartonline.com/?p=136. The Topic is Building a Retirement Nest Egg.
Financial Samurai, there's no simple formula that will give you a golden number for your nest egg at retirement. This is going to be different for everyone based on their life expectancy and retirement plans.
But your line of thinking is correct. You should somehow come up with a number that is large enough that it could generate enough income so that you could essentially live off of the interest it creates or only tap into some of the principal each year so that you don't deplete your nest egg before you die.
Easier said than done, but it's a good exercise to help you understand how much money you have to accumulate, how long you have to get there, and how much you need to save today so that you can reach that goal.
Jeremy - Sorry I missed it live! I'll definitely try and get on next Monday.
Is there one simple formula you recommend for how much to save? I've come up with $3 million cash, so it can provide a similar level of interest income as a salary I made at a certain point in my life.
Would love to hear your thoughts.