Barbara Ginty

The textbook rule is you want to look at what you'll have at your retirement and what it'll generate. And we usually use to be conservative 4%. You can also use 5%, but I would say somewhere between 4% and 5% off of how much you have saved. So for instance, if you have a million dollars saved, that would generate on the conservative side, $40,000. And so then you know, okay, that's 40,000.

The textbook rule is you want to look at what you'll have at your retirement and what it'll generate. And we usually use to be conservative 4%. You can also use 5%, but I would say somewhere between 4% and 5% off of how much you have saved. So for instance, if you have a million dollars saved, that would generate on the conservative side, $40,000. And so then you know, okay, that's 40,000.

But now is that 40,000 gross or is that 40,000 net? And so if that million dollars is a million dollars in an IRA, right, traditional IRA, then we know we're also going to have to pay tax on that 40,000. So it's not really 40,000 in our pocket, depending on where we're going to fall tax-wise.

But now is that 40,000 gross or is that 40,000 net? And so if that million dollars is a million dollars in an IRA, right, traditional IRA, then we know we're also going to have to pay tax on that 40,000. So it's not really 40,000 in our pocket, depending on where we're going to fall tax-wise.

But now is that 40,000 gross or is that 40,000 net? And so if that million dollars is a million dollars in an IRA, right, traditional IRA, then we know we're also going to have to pay tax on that 40,000. So it's not really 40,000 in our pocket, depending on where we're going to fall tax-wise.

If it's a million dollars in a Roth, which would be amazing, then that is 40,000 to spend versus 40,000 on a traditional IRA. And that's where you start to kind of rough draft your plan and say, okay, this is how much we're going to have. This is how much on a ballpark it's going to generate. And then you say, what are our tax ramifications on that? And then that gives you an idea of

If it's a million dollars in a Roth, which would be amazing, then that is 40,000 to spend versus 40,000 on a traditional IRA. And that's where you start to kind of rough draft your plan and say, okay, this is how much we're going to have. This is how much on a ballpark it's going to generate. And then you say, what are our tax ramifications on that? And then that gives you an idea of

If it's a million dollars in a Roth, which would be amazing, then that is 40,000 to spend versus 40,000 on a traditional IRA. And that's where you start to kind of rough draft your plan and say, okay, this is how much we're going to have. This is how much on a ballpark it's going to generate. And then you say, what are our tax ramifications on that? And then that gives you an idea of

if that's going to be able to maintain your current lifestyle.

if that's going to be able to maintain your current lifestyle.

if that's going to be able to maintain your current lifestyle.

So I would say the big missteps I see with people planning for retirement is they underestimate some of the expenses. We'll just say in this instance, medical, right? What medical is going to cost, right? And then taxes are often underestimated depending on what you have saved for retirement.

So I would say the big missteps I see with people planning for retirement is they underestimate some of the expenses. We'll just say in this instance, medical, right? What medical is going to cost, right? And then taxes are often underestimated depending on what you have saved for retirement.

So I would say the big missteps I see with people planning for retirement is they underestimate some of the expenses. We'll just say in this instance, medical, right? What medical is going to cost, right? And then taxes are often underestimated depending on what you have saved for retirement.

Oftentimes when people come in to work with me for retirement, the majority of their monies were saved through workplace plans, right?

Oftentimes when people come in to work with me for retirement, the majority of their monies were saved through workplace plans, right?

Oftentimes when people come in to work with me for retirement, the majority of their monies were saved through workplace plans, right?

You know, you're payroll driven. And so oftentimes, especially people retiring soon, the Roth option wasn't there or wasn't a consideration. And so oftentimes the bulk of the money is going to be taxed at ordinary income brackets that's going to be supporting them.

You know, you're payroll driven. And so oftentimes, especially people retiring soon, the Roth option wasn't there or wasn't a consideration. And so oftentimes the bulk of the money is going to be taxed at ordinary income brackets that's going to be supporting them.

You know, you're payroll driven. And so oftentimes, especially people retiring soon, the Roth option wasn't there or wasn't a consideration. And so oftentimes the bulk of the money is going to be taxed at ordinary income brackets that's going to be supporting them.