Do people usually fret about running out of money? Are there ways to set aside retirement money for your adult children? Eric answers these questions and more on today’s show.
(Click the featured times below to jump forward in the episode)
Michael in Waukee has a 30-year-old son who finally just finished grad school. Between the late start to saving for retirement and a lot of student loan debt, is there a way Michael can help his son save? They have more than they need for retirement but would like to set some aside for their son. Eric says one way to do this is through a Roth IRA, as long as he earns income. You can gift money to your children and can suggest that he place it in a Roth account. This helps your child build a financial foundation and retirement savings now instead of waiting until they get it via inheritance.
Penny in Ames has been retired for about three years and even with her withdrawals, the account balance is bigger than it was when she started. Even still, she worries about running out of money eventually in retirement. Is that common? Eric says it is a common fear because you are without that safety net of work and earning a paycheck. Meeting with an advisor can help you stress test your plan, protect your investments, and see how you can best take out your distributions. Eric talks through what happened during our last major downturn in 2008 and what it was like being an advisor at that time.
James in Iowa City was planning to retire next year but his company asked him to stay on for a project that will last longer. Any benefit to retiring at 67 instead of 65? More money! If you like what you do and want to do this project, Eric says you’ll have more all around. You’ll have more savings, bigger Social Security benefits, and a larger pension at the end of those two years. Ultimately, you want to make sure it’s the right thing for you.
Listen to the entire episode or skip ahead using the timestamps below.
[0:46] – Can I help my adult son save for retirement?
[4:04] – Is it common to worry about running out of money?
[6:37] – Was your advisor in business during our last market downturn?
[10:55] – Any benefit to retiring at 67 instead of 65?
“The value an advisor brings is behavior modification: preventing you from doing things that are nonbeneficial to your plan, keeping you on task.”
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