Rachel and Ross, referred to Moneywatch Advisors by Chandler and Monica, are both 40-years old and want to know how much they should have when they retire. Given their combined income of $125,000 per year, we project they will need just over $3.1 Million in investment assets when they retire at 67 to sustain their current standard of living. What the what?! Keep reading to see how we arrived at that number.
Blog
How Would You Live If Money Wasn’t An Issue?
Submitted by Moneywatch Advisors on September 15th, 2017If money wasn’t an issue, what would you do? Because, that’s what financial freedom allows. Would you quit your job? Travel the world? Volunteer for a favorite cause? This post illustrates how it’s easier to save and invest for your financial freedom dream than saving for that undefined retirement way off in the distance.
Imagine you are a 30-year old with a degree in French literature and a well-paying job writing code for a new tech startup. No, really! Retirement, as we traditionally think of it, is 35 years away. Saving is for suckers! You’re buying the loft, the 70-inch with surround sound and an Audi Quattro.
Why You Should Care That Kentucky’s Public Pensions are a Disaster
Submitted by Moneywatch Advisors on September 8th, 2017I understand a discussion about pensions is about as welcome as Lyme disease. But, while much has been written about who is to blame for Kentucky’s pension crisis and what the impact might be to participants in the various retirement systems, very little has been written about why those of us who don’t have pensions should care. Here is why we should care: because if this is not fixed, Kentucky will slide back rather than be able to invest for our economic future. Enjoy the state parks? You might have to take the kids to Opryland instead. Appreciate the opportunities that our public schools and public universities offer? Well, get ready to sell more wrapping paper and explain to your student that history didn’t end in 2002, despite when the textbook was published.
September 2017 Newsletter to Clients
Submitted by Moneywatch Advisors on September 5th, 2017Enjoy this month’s edition that features the new Moneywatch Advisors logo and website plus our thoughts on potential impacts of the Federal Reserve’s plan to reduce bond purchases starting in October.
A Vacation to London as a Metaphor for our Financial Lives
Submitted by Moneywatch Advisors on September 1st, 2017Last week’s post illustrated how important it is for our long-term financial well-being to live beneath our means and not care about keeping up with the Kardashians in the car department. But that doesn’t mean we have to rinse out our sandwich baggies so we can use them again the next day. (Apologies to my environmentalist friends) The journey to financial freedom shouldn’t be painful! No, our financial lives, like our lives in general, should be a good balance between saving for our futures and enjoying our lives now.
You Aren’t What You Drive
Submitted by Moneywatch Advisors on August 25th, 2017A few years ago my son and I parked in a parking lot here in Lexington that was filled with Mercedes, BMW’s and Range Rovers. We were in a Honda Accord. My son, 12 at the time with a keen eye for nice autos, remarked that all these car owners must be rich! For a saver like me that was a big, fat softball that I intended to slam out of the park with a valuable life lesson titled, “You aren’t what you drive.”
What Does It Take To Be a Millionaire?
Submitted by Moneywatch Advisors on August 10th, 2017When I was 15 years old I had a paper route and, with no expenses and no girlfriend, I saved virtually every dime I made. At that same time, I became interested in stocks and investing. Now, I had no clue how stock investing worked and my parents, born 8 years after the Great Depression, viewed the stock market in roughly the same terms as a casino.
August 2017 Newsletter to Clients
Submitted by Moneywatch Advisors on August 2nd, 2017Enjoy this month’s edition that features a review of the stock market to date.
Stock Market: At the very moment this is being written the Dow Jones Industrial Average has just passed the 22,000 point mark – the most recent of 30 record-highs during 2017. The S&P 500 also hit new record highs in late July. Through the end of July, the S&P 500 was up nearly 9% from the day President Trump took office. For perspective, that increase has only been surpassed in recent decades by two other new administrations: George W. Bush’s first 6 months in office saw an increase of 20.7% and Barack Obama’s first 6 months in office saw an increase of 22.6%.