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Baby boomer debt

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    Coming up short on retirement savings

  • Duration 4:05
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Boomers -- -- most Americans are coming up short when it comes to retiring by the age of 65.

You should have saved 363000.

Dollars but the average household.

120000.

Dollars -- that's actually 66%.

Less so what can you do to make sure you can retire comfortably.

Join us out a financial planner and president of JFL total wealth management -- -- charger.

-- -- -- So I guess 65 as a retirement age is just an -- It it is -- Social Security was set up in the sixty and in the 1930s.

Average life expectancy was 64.

Now average life expectancies in the mid eighties if you retire at 65.

You'll be retired and alive for twenty years that you have to -- in your retirement -- go wrong and appears it would take 35 set it up so why would be dead.

Before sort of collect and so exaggerate and that's -- -- -- Wessels securities having this problem is they were never designed to pay out people for twenty year periods of time.

And to fund twenty years it's like being on vacation it's gonna course -- tremendous amount of money.

We've got to send our kids to college that that money -- -- spent and on college we could have been saving but sent him to college is important.

-- item of a huge fan of education I think everybody should do their best to get a college education however.

There's a difference between going with state school where you're paying maybe twenty to 25000 dollars a year for education and go to a private school.

For fifty to 60000 dollars I can't justify the additional financial difference.

Again I think a college degree is important but I don't think you're getting an extra 40000 dollars -- benefit them.

By paying for -- -- school I wouldn't mind I'd love to retire here in Manhattan.

But it's so expensive.

I guess you gotta be willing to move.

You have to in new York New Jersey my next the average property tax in my -- is 181000 dollars if I were to move down south 181000 dollars to buy 300000 dollar home.

And -- I could take the equity out of my home and I could live on it.

Living in the tristate there is incredibly expensive and I think for most people once -- kids around a school.

You have to say to themselves -- it really makes sense for me to have these higher expenses -- -- once in your life.

You got a budget.

If you've never done before it's time to -- we have that there's three things you have to have water food water shelter you know and of those things are still negotiable terms of that.

You know you need to Corbett you don't necessarily need to have a BMW you have to take a look at what your core -- or.

What you will -- compromise on and develop a reasonable plan for retirement -- I've -- you -- -- the kids move out of the house.

-- behind on their -- I think it.

You could spend a tremendous amount of money in in.

I see a lot of people were retired who are given their kids' money and a regular basis and it's destroying the return -- you know I think you get to a point where.

You have to say you're gonna make some mistakes you're gonna have some tough years but those of the best times -- it really tough and some up and get some ready for the future at some point you -- be self sufficient.

You know be tempting to maybe play the stock market.

You look at some risky investments because I -- get a big -- -- below the tours are always wins you know I think a lot of times people get close to retirement they see the numbers don't work and based on that what they try to do is take additional risk in the problem is if you're in an 80% stock portfolio -- the ability to lose about 40% of your money.

If that happens you'll never retire.

I think you have to take the -- down a little bit and just say to yourself what is reasonable.

Anybody who's telling you that they will get superior -- returns is lying around you should run away from somebody who is telling you they will -- you reasonable rates of return.

Over a period of -- -- -- type of person you want to work with.

If I wanted to retire right now -- my guard thing.

You need a lot basically I tell people if you're drawing on this money you probably consume 4% withdrawal rates of five million dollars.

I can probably assume an income of 40000 dollars a year for wanna make sure don't run -- money.

So whatever you have plus 4% time for first time for Forbes is what you could reasonably -- Our Jerry lynch are related to Merrill he's my evil plan to -- it.

Yeah it.

-- -- -- -- Thank you okay here we have more.

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