Christine Dunn interviewed Stephen Johnson, a financial consultant with Charles Schwab who works in Chestnut Hill, about a recent survey about planning for retirement spending. Hear what he had to say.
What are the biggest mistakes that people often make when planning for retirement spending?
Stephen Johnson says the two big mistakes he’s seen are misunderstanding how to strategically take money out of savings accounts and investment portfolios and fully understanding exactly what retirement expenses will be. Listen and learn more about how to define “predictable” sources of income and fully account for potential expenses.
How can you effectively develop a plan for "measured" withdrawals?
Charles Schwab's Stephen Johnson says that the firm follows the "4 percent" rule to help create an effective plan for a retirement that lasts about 30 years and keeps pace with inflation. Learn more about the assumptions they make to come up with this amount, and the risks involved.
Covering the cost of healthcare expenses is a significant concern.
Schwab's Johnson says people need to start planning for this expenses as early as possible. "It eases the burden," he said. Having that extra cash on hand, possibly as a separate fund, gives people the additional cushion they may need in case of emergency.
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