#123 - My thoughts on 12 common financial and retirement planning rules of thumb
Podcast: Retirement Planning Education, with Andy PankoPublished On: Thu Oct 31 2024
Description: Special edition episode in which Andy shares his views on whether the below 12 rules of thumb are accurate or not: You should always contribute at least enough to your employer plan (like a 401(k)) to get the full employer matchYou shouldn't help your kids pay for college if it means shorting your own financial security in retirementYou need at least $X million (where $X can be whatever amount someone wants to say) of savings to retireIn retirement, expect to need 80% of whatever your pre-retirement income was each yearThe 4% "rule" is a good tool for determining how much of a portfolio someone can distribution each year in retirementYour target stock allocation percentage should be 100 minus your ageYou should pay off your mortgage before retiringThe rule of 72 is a good tool to tell how long it will take to double your investmentYou should have an emergency fund of cash equal to three to six months of expensesPermanent life insurance should be avoided; only use term life insuranceThe owner of a large investment advisory firm says, "I hate annuities and you should too"That same person also says of his firm, "we do better when you do better"To send Andy questions to be addressed on future Q&A episodes, email andy@andypanko.comLinks in this episode:My podcast about the 4% "rule" - hereMy company newsletter - Retirement Planning InsightsFacebook group - Retirement Planning Education (formerly Taxes in Retirement)YouTube channel - Retirement Planning Education (formerly Retirement Planning Demystified)Retirement Planning Education website - www.RetirementPlanningEducation.com
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