#123 - My thoughts on 12 common financial and retirement planning rules of thumb

10/31/2024

Retirement Planning Education, with Andy Panko

0:00

51:13

Special edition episode in which Andy shares his views on whether the below 12 rules of thumb are accurate or not:

You should always contribute at least enough to your employer plan (like a 401(k)) to get the full employer match
You shouldn't help your kids pay for college if it means shorting your own financial security in retirement
You need at least $X million (where $X can be whatever amount someone wants to say) of savings to retire
In retirement, expect to need 80% of whatever your pre-retirement income was each year
The 4% "rule" is a good tool for determining how much of a portfolio someone can distribution each year in retirement
Your target stock allocation percentage should be 100 minus your age
You should pay off your mortgage before retiring
The rule of 72 is a good tool to tell how long it will take to double your investment
You should have an emergency fund of cash equal to three to six months of expenses
Permanent life insurance should be avoided; only use term life insurance
The owner of a large investment advisory firm says, "I hate annuities and you should too"
That same person also says of his firm, "we do better when you do better"

To send Andy questions to be addressed on future Q&A episodes, email [email protected]

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