Retirement Planning

On Knowing Nothing Different

On Knowing Nothing Different

 

Growing up, I was always intrigued by money. I liked earning it, and I really liked saving it.

In May 1997, about a month shy of my 14th birthday, I biked from our family’s home in Eden Prairie over to the Chanhassen McDonald’s – a one-mile ride. I went with a friend from the neighborhood. We both applied for jobs there on the spot, and I remember nervously wondering if they had any interest in hiring me.

Fun with Facts and Numbers

Fun with Facts and Numbers

Life expectancy in 1900 was 47. In 1935 (when the Social Security program became an active policy), life expectancy had increased to 61. The Social Security full retirement age (FRA) at that time was 65, meaning that over 50% of Americans were never intended to receive any sort of retirement benefit from the Social Security program. Life expectancy is up to 78.7 as of 2017. (source: U.S. Census Bureau).

Knowing the Data

Knowing the Data

My wife and I generally agree about money. We both want to give generously to our church and other charities, we both want to save at least 15% of our income toward retirement, and we both want to have our mortgage paid off in less than 9 years (which will have been less than 15 years from when we bought our home together).

Are Healthcare Costs a Retirement Killer?

Are Healthcare Costs a Retirement Killer?

One of our primary goals at The Wealth Group is to help our clients achieve financial independence at a younger age than most Americans. Financial independence doesn’t necessarily mean you retire and quit working; it just means you no longer need to keep working or saving money for the rest of your life.

But for our clients in their 50s and early 60s that begin to contemplate retirement, one of their biggest concerns is healthcare costs. Before going on Medicare, buying private health insurance is certainly expensive.

Helping Our Clients Save More for Retirement

Helping Our Clients Save More for Retirement

The Wealth Group exists to help our clients make better decisions with their money. Our clients' financial behaviors should look different from their neighbors. Making better decisions around money leads to greater success with money; ergo, wealth is built. Building wealth is not magic; it's not the result of cosmic forces. It's a known formula, consistently followed over a long period of time.

Every year since 2000, Vanguard releases a report called How America Saves. The 2016 report was released last summer; it is 110 pages and chock-full of fascinating data. Well, fascinating to nerds like us. 

The Importance of Car-Buying Decisions

The Importance of Car-Buying Decisions

Some blog posts are more important than others. If I could shout through the screen to you, I would say: “This post is really important!” It’s not important in the sense that “Mike and Austin think this is important”; it’s important because the math shows us it’s crucial.

The second-largest annual expenditure for Americans is transportation (second to housing). If it’s the second-largest annual expenditure, it’s appropriate to say this category of spending should be a big deal in the world of financial planning.