Planning with Parker: Making a budget in retirement (Financial Safari)
Don't let the thought of a line-by-line budget overwhelm you. Here's how to set a stress-free, realistic budget.
and we are back on financial safari and consumer advocate states do not, of course, the next. To Parker Holland, chief strategist at Capital Financial, It's called planning with Parker, and planning is really what we do and what you do in particular. And one of the things that we talk about is the budget is a word that people don't like to hear. Maybe we'll call it lifestyle expense report. You don't always have to make a line by line item budget, but it is always good to know what your cost of living is and the best way I always talk to clients about it. I don't have a line by line budget. I mean, that's what we do. But what we do always say everyone needs is go to your debits column. You do Online banking credit cards It doesn't matter what you used to pay. Go to the Devil's column and just see over the past year go back 12 months. Holidays, birthdays, everything Adam Up, divided by 12. What's your average monthly income cause? Too many people focus on the line by line budget, and they're counting mortgage, electricity, water, but they always fluff the information that goes under discretionary. But if you're hitting what's truly going in and out of the accounts you can make, you can see the true standard living well. I think for a lot of folks to, you know, from an insurance standpoint, maybe that only comes out quarterly. And if you don't count that or put that in the average, well, it's gonna mess things up a little bit. Property taxes and all of that, too. I mean, we see a lot of things that can skew these numbers. And if you plan for 5000 month and you end up actually spending 7000 month, your retirement plan might be about to implode if it's not done appropriately. And so when we talk about that average, that is something that a real number that you can make work within. Within a plan, it's 100% relative. It doesn't matter what your budging your savings mentality is. It doesn't matter what your standard of living is. Every plan is personal and it is all relative. There is not a magic number you need to be at or that you need to have saved. It's knowing all the moving parts to make the numbers work. And it's an interesting transition from that whole saving mode where we spent our entire career saving, saving, saving. And then you have to shift gears and think about Okay, I've gotto preserve some of this. I need to spend some of this. That's a That's a pretty hard thing for a lot of folks to grab. I say it every day. Paychecks stop Feels in taxes Don't the most scariest part of planning is paying yourself, and I think that's the biggest thing we help with Our clients is transitioning from that earned income salary to replicating and paying themselves from investments. It's very scary, but it can be worry free. That's what you do in terms of trying to bake. I know coaches this all the time. You know, take the worry out of planning for retirement and take the worry of living in retirement. That's really the goal. And also, I mean, if we all knew the day we die would make the last check bounced. We've had a perfect plan, but we don't and that's something we need to dive into and we need to look at making sure that both spouses air covered the legacy the estate planning. Also, if there is anything you wanna have, special terms or conditions of trust wills, it doesn't matter. It is all personalized, and it could be put together for you and the couple situation. That's really important, especially if there's any kind of age difference between the two. Of course, that really shapes the plan, doesn't it? Does. And a lot of people forget. I mean one spouse outliving the other. That's probably top three of the biggest concerns people have. And if you're looking at an age difference of more than 3 to 5 years, that's a lot of moving parts, especially if you're just looking actuarial tables because you, yeah, that could get coming. And they can't be wrong. Every day you age war, they're gonna move it out. They're not gonna be wrong, is actually So what's the biggest thing that you can tell someone right now? The biggest thing is never be scared to ask a question. Never be scared to start a plan, and also just make sure that when you sit down with someone that you're comfortable and it's in terms that you can understand, and that is your plan. It's not theirs. That's fantastic. You know, I've heard it. My whole life is something that my parents tried to instill in me early on. The power of the budget. Very important. Yeah, and, uh, again, no one likes to be told what to do. Course, of course. And a lot of times a budget is is all the things you don't want to do that you have to do. But, you know, let's let's be honest about this. The reason why we do it is so that we reach the end of the month and we still have money in our wallets. We don't want to get towards the end of the month and run out, and that's why you do a budget. Many of you watching don't have that kind of worry, and you just want to make sure that you stay on track and not overspend, I guess. But there are a lot of folks watching who Thomas really need to make sure that they put everything down in writing, and sometimes it doesn't make sense to get that five or six or $10 cup of coffee every day. absolutely. I completely understand. So it's good. It's a good reward. Sure, that shouldn't be every single day. Absolutely. And it goes back to the plan. Maybe it is there. Some. Maybe it isn't for others, but the important thing is to have that plan in place. So you know that you can't just get up to retirement. As coach Pete says, you get all the way through retirement, we'll put a plan together for the next 20 people. Call. Let's do it. Let's do it, folks. All you have to do to take advantage is give us a call at 888910 80 to 65 8889108265 or you context breeze to 21,000 Breathe 21,000