#259 - How to Live Without a Paycheck: Making Sure You Have Enough Money in Retirement
Everyone’s biggest worry is if they will have enough money in retirement. Are you prepared to live life without a paycheck? Over the next month, we will explore how to get you ready to live your life without a paycheck. A paycheck can be like a security blanket and learning to live life without it can be scary. That’s why it’s important to prepare for life without a paycheck now. Learn how to make sure you have enough money in retirement by listening to this episode of Retirement Answer Man.
Is your paycheck your superpower?
Do you remember your first paycheck? Do you remember the power you felt when you had that money in your hands? Your paycheck equals power, so what happens when it disappears? With a paycheck you earn money, you can save money, and watch your wealth grow. Once your paycheck disappears it can be like stripping away a superpower. Your wealth begins to dissipate as you withdraw from your savings each month. This can scare anyone. Learn how to gain your powers back by planning for life without a paycheck.
Don’t fall for the scarcity mindset
Many people enter a mindset of scarcity even if they have plenty of money tucked away for retirement. A scarcity mindset can zap away all your fun retirement plans. There is a tipping point at which you realize that you won’t run out of money. Unfortunately, by the time this usually happens, most are too old to really enjoy their money. Learn how to manage your money in retirement so that you can partake in all the retirement fun on this episode of Retirement Answer Man.
Is your systematic withdrawal strategy your behind the times?
The first step in learning how to live without a paycheck is to plan how you will pay for your lifestyle. In the past calculating your retirement was a simple math equation. Figure out how much you have and divide equally to plan your yearly withdrawal amount. This system of retirement planning is one-dimensional and antiquated. It may not serve your ideal retirement lifestyle very well. A one-dimensional withdrawal strategy could lead to underspending in the go-go years. Is your withdrawal strategy set up to ensure that you can make the most of your retirement?
Why you need an agile retirement plan to manage money in retirement
With an agile retirement plan, you don’t have a set withdrawal ratio each year. Some years you may have a 10% withdrawal ratio and then there will be others in which you have a 2% withdrawal ratio. Gone are the days when you simply sell stocks when you need the money. You can now create clarity on how you will pay for your retirement lifestyle. With an agile retirement plan, you can plan each year differently. Do you want to take all the grandkids to Disney World, or plan an epic trip around the country? Will you have a low key year after a year of spending big? With an agile retirement plan, you can take advantage of the go-go years to spend big when you have the opportunity.
OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN
HOT TOPIC SEGMENT
[3:02] Your paycheck equals power
PRACTICAL PLANNING SEGMENT
[10:05] A systematic withdrawal strategy can be dangerous
[15:19] We need a withdrawal system that gives us more clarity
[20:13] Over the next few episodes we’ll be talking about creating these systems
THE HAPPY LAB SEGMENT
[21:28] Find people that you resonate with
TODAY’S SMART SPRINT SEGMENT
[22:25] How will you pay for retirement?
Resources Mentioned In This Episode
Roger’s YouTube Channel - Roger That
BOOK - Rock Retirement by Roger Whitney
3-video Series: 5 Minute Retirement Makeover
Roger’s Retirement Learning Center
The Retirement Answer Man Facebook Page