Welcome to the round-up!
Below are the posts we read, found interesting and loved this week for a variety of reasons. They are inspiring and thought-provoking and we’d like to share them with you.
New York Times
How long will you live? This article describes the problem of longevity and retirement savings eloquently but fails in prescribing a real solution. The solutions discussed are very general and don’t really live up to the title of the article. The author recommends working longer if possible along with several other tweaks you can make including considering an annuity and “budgeting your expenses.”
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From the article:
The Employee Benefit Research Institute increased its projections for how much retirees will need to save to pay for health care in retirement. In an EBRI Notes article released in late January, the organization found that a 65-year-old couple may need nearly $350,000 to have a 90% chance of covering their health care expenses in retirement.
These are just health care expenses. The article states that a sixty-five year old man will need $127,000 just to cover prescriptions. Some of this cost will be covered by insurance, some won’t. This number is only going to go up as are health care costs. You can almost pick any number, because it’s not affordable. Are you on track with your retirement savings to cover the rising healthcare costs? Find a way to work around this. Think of how much longer your retirement savings would last if you chose to retire outside the US. We cover this extensively on the blog in our living abroad section. Check it out!
Warren Buffett covered investment fees in his annual letter.
From the article:
According to Buffett:
“When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients,” he wrote. “Both large and small investors should stick with low-cost index funds.”
We agree! The number one killer of returns is the fees. Index it and forget it!
The Earth Awaits
I wanted to take the time to recommend a new site we found this week. If you’re considering retiring overseas or just working there for a few years, this site is your new best friend. You start with your total budget, narrow it down by the continent(s) you’re willing to live on and other important factors like crime rates, lifestyle and pollution and The Earth Awaits shows you cities that match your specifications. If you’re open minded, this cost of living calculator site gives you a lot of new cities and options to think about. Try it out!
Have a great week!
Ian Bond is a private banking senior executive with over three decades of experience in wealth and asset management with Goldman Sachs, Credit Suisse, and Citigroup. He has built major businesses on four continents.
Despite his professional responsibility for assets over $100B and revenues over $1B, after the 2008 crash Ian was personally going broke. Within five years he destroyed his debt, became an expat in 2014, and built multiple streams of income to fund his imminent retirement. Ian is also the founder of MyRetirementRehab.me created to help other executives and professionals rehabilitate their finances and make a prosperous, enduring retirement a reality.