What to Consider When Saving for Retirement - a podcast by Derek Moore

from 2018-08-07T17:28:44

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Welcome to the Broken Pie Chart Podcast. This is episode 1, and I’m your host, Derek Moore. Today we’ll be discussing key factors in saving for retirement and a bit about retirement calculators. The genesis of this discussion came about when I was recently asked, “Do I have enough saved based upon my age? When do you think I can retire?”

Where you are as an investor is a function of several inputs. So I thought it would be helpful today if I went through some of the inputs that go into these calculations, such as: the percentage you’re investing annually, other means of income in saving, building equity, inflation, risk management, and more. I also talk about the different ways these calculators are programmed and what you have to be careful of, and consider, when inputting your information into these calculators.

Key Takeaways:

[:12] Today’s topic of discussion: retirement calculators and what to consider when saving for retirement.

[2:30] How these retirement calculators work and all the components you need to consider in your calculations.

[9:09] The most important factor in saving for retirement.

[10:42] The difference between the percentage of your contribution amount.

[13:29] Accommodating for inflation and why it matters.

[16:42] Why you shouldn’t depend fully on social security.

[19:16] Another extremely important factor: your return on investment.

[22:12] What would happen if we had a year like the 2008 market crash again?

[24:11] Other means of income in saving for your retirement.

[26:13] About the Monte Carlo simulation.

[27:12] Things to be careful of when calculating.