Managing your financial life is not just about money.

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Sequence Risk & Emergency Reserves in Retirement

This is the eleventh article in a series.  In this piece I will answer questions 24 and 25 of 32 questions that you must answer before choosing to retire What do I do about “sequence risk”? There are some things you can’t control in retirement, and “sequence risk” is one of the biggies!  Say that you assumed a 4% per year return from your retirement nest egg to make retirement work.  If you earn 8% per year for the first five years of retirement, you are a happy person and probably contemplating spending more in retirement.  If you average a
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How Big Does My Nest Egg Have To Be To Last For My Lifetime?

This is article number ten in a series. In this piece I will answer questions 21, 22 and 23 of 32 questions you must answer before deciding when to retire, How much income, before and after taxes, will I need from my nest egg? The answer is a process that is just simple math. Take the total guaranteed before tax income in retirement (usually social security and/or a pension) and have your tax preparer do a hypothetical tax return for you for your first full year of retirement.  What is left after federal and state taxes is what you have
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What Expenses Don’t I Know About in Retirement?

This is the ninth article in a series on retirement.  In this piece I will answer questions 17, 18, 19 and 20 of 32 questions everyone must answer before deciding on retirement. What expenses don’t I know about in retirement? I have talked about estimated retirement expenses in question 13.  However, there are some things that require repeating and more explanation. Many folks under-estimate the amount of money that will lavish upon kids and grandkids. If you don’t have grandchildren, you have no clue what is coming and how much it will change your life (and your checkbook).  Talk to
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