How Much Money Is Enough To Retire?

Transcript:

David Scranton: Most of us dream of sailing happily off into the sunset, but many of us also wonder how much money I would need to actually do it in other words how much is enough to retire. And you know there is not a one-size-fits-all answer, but there is a way to determine the answer that’s right for you it’s time once again to tune out the hype and focus on the facts, the facts that matter to you the income generation.  Hello, I’m David Scranton Have you ever gone to a baseball game or taking a trip?  And taking some time to figure out how much it would cost? Probably not none of us wants to take that risk showing up somewhere looking forward to enjoying ourselves only to realize that we didn’t bring enough money with us. Naturally we all want to enjoy retirement, so it’s important to approach it the same way to take some time to figure out how much it’s going to cost and there’s a right way to do it and a wrong way to do it and today will show you the right way.  Helping us out today would be our guest John Grace and Tommy Brown but first let’s look at some different approaches in calculating your own retirement cost.

When figuring out how much you need for retirement, how should you approach the calculation from the bottom up or from the top down and what’s the difference? Well, when calculating from the bottom up you simply add up all your anticipated expenses that you think that you might have during retirement, now admittedly this seems like the most logical approach and this is the way that many people attempt to do it. It’s how you would approach it for example going to a baseball game, you’d figure out how much the tickets would cost how much the parking hot dogs so on and so forth. And this approach is fine for a ball game or a vacation unfortunately it’s not the best approach for retirement and the main reason is simply this inevitably you will miss things you will almost certainly overlooked items and under calculating rings in trying to determine 30 years of retirement expenses, we’ll talk more about that later. The fact is that I’m more better approach in determine how much you need for retirement is to do what I call a top-down financial analysis.

You see with a top-down Financial analysis, a top-down financial analysis for your expected retirement expenses instead you start by identify your expenses and contributions you expected to go away during retirement and then you subtract Gross income. For example,  if you’re making $100,000 a year while working, you can figure out how much that is going to your 401k and subtract that from the 100,000 you can also subtract the FICA tax that comes out of your paycheck why because you don’t have to pay FICA tax on retirement income and if you expect to have your mortgage paid off by the time you retire you can subtract that monthly expense as well but you also have to determine whether or not it’s pre-tax or post-tax and your Because it’s a mixed bag. Every payment is a mixture of principal and interest. At the beginning it’s more interest than less principal and at the end it becomes more principle less interest, so in terms of your top-down analysis the interest portion of the payment can come right off the top of your income of your gross income because it’s tax deductible. However, your principal portion of your tax returns will have to be grossed up. Why? Because it’s after-tax, it’s not deductible, so what are some other examples of post-tax expenses? well there’s that FICA tax from your paycheck and that is paid with after-tax dollars and therefore it has to be grossed of the same goes for car payments if you think you may not carry into retirement as well as any amount you are adding anybody to a bank or credit union or saving accounts but all those expenses would have to be grossed up for taxes. So, let’s just say hypothetically when you grow help all of those you end up with $35,000 worth of expenses that you won’t carry into retirement subtract 9 from 100 and you get $70,000 a year of pre-tax income that you really spending now.

So, does that mean that $70,000 a year is the answer to the question how much I need to retire, well, not exactly? Because doing it top-down financial analysis is the first step to determining how much you need to retire it doesn’t end there. There are several additional steps starting with Google settings if you really want to chance to accurately answer the question how much I need to retire, identifying your specific retirement goals is a key part of the process is most people don’t have elaborate retirement goals. They are not in interested in buying yacht or sailing around the world buying a penthouse in Manhattan….  sofa moose people’s goal is the dine out more travel more pursuing other favorite pastimes, and spending time with their grandchildren and all the wild spelling of basic lifestyle with a great level of-of that of extravagant expenses. Instead, they have goals that they’re probably going to be able to achieve through a reasonable income stream not dramatically different from what they’re already accustomed to but even if your goals aren’t elaborate it’s still important to take the time out to identify them and the estimate their cost.

Let’s say you want to travel for example and are your grandchildren close by or will you have to get on a plane every time you visit them, if you’re a golfer how much your annual club fees going to run. So, once you have a rough idea how much is going to cost if you can add it to your anticipated General expenses with the work we have done so far and measure it alongside that work that’s called top-down analysis and for this exercise we are including Healthcare as a part of your general expensive. We will talk about that more; the topic of Healthcare is a separate issue and we’ll deal with that later in the shower. So, with that in mind will that $70,000 be efficient enough and if so how much of it will you need to come from savings and Investments now to make that determination you first have to identify and calculate your other sources of income and we’ll talk more about that in just a few minutes. Now it’s time to welcome our first guess, John Grace, presidents of investors Advantage Corp in Westlake Village California. He possesses more than 30 years of experience in the Securities industry, Mr. Grace is a registered principal with the security America financial contributing analyst for the wave newspaper. Welcome to the show

John Grace: Thanks.

David Scranton: You have written a lot of great articles for the wave newspaper and on social media you have written an article several articles on Baby Bloomers or we would like to call on our show the income generation, so tell me about your recent articles about Baby Bloomers getting aa 26% score on the American College New York Life Center for retirement income 2017 survey. I think that score would come as a surprise to almost everybody watching this show today.

John Grace: Well that’s why I had to write that the day because it surprised me, and I think it would come to a surprise so meaning our confidence level stays High between the 70s and 80s percent well through us in terms of age. But when it comes to 816 North of 60% and by age 80 we’re dropping off 230 25 and 20% by 25 by Age 85.  So, of course, what that means is that we all think that we are doing just fine and it’s kind of unconscious where the brain it isn’t functioning as well as it used to and we’re not getting the kind of attention that we deserve because we can’t cry for help, so we are kind of working against ourselves and it’s really in the dark.

David Scranton: Well it’s like you know, like going to a basketball court you know I often think that I still can do the same stuff that I could do on a basketball court when I was a teenager but obviously it doesn’t quite work that way

John Grace: When you can in your mind but don’t play with any teenagers right because they will kick your butt off the Court.

David Scranton: That’s right they will prove you’re wrong for sure, but you know that the funny thing here is that you know Baby Boomers you know also are you know in their fifties, so you know is there any differentiation in that test for those working their 50s and now in their 70s yes.

John Grace: I didn’t see one and unfortunately so  I think that’s a very good question so I can compare or see a relationship between how much better we were in her fifties and how we’re working  past age 60, but let’s recognize that this year we have Donald Trump, Janet Yellen Bill Clinton, George W Bush Born 1946 of course and Michelle Obama breaking that up from the rear at 1964 so that makes her 54 this year  wanting to believe that everything is just fine and as I said to a group of clients look if you don’t bring your children in the equation I think that it is appropriate that you bring an advocate to the table. In other words, someone who knows you knows what you’re trying to do the person who can second guess what you’re doing as opposed to just believing blindly that everything is just fine, and I just continue to Coast

David Scranton:  So, what do you think are some of the major areas where people got that some of the lowest scores or in your experience the areas where you think people need the most help they need the most education

John Scranton: The first area that certainly got my attention was about the confidence, isn’t that fascinated that we are overconfident we still think that we can play the ball we used to play it, so I think it calls for us to have a better assessment of what we’re trying to accomplish. Let me give you another or make a good example many people would believe certainly if they’ve been through 50% losses 02, 08, 09 we can weather that storm but we haven’t done the math okay, in other words, maybe that works for you when you were contributing but that was then and now you’re either at or near the position or already in a position where you’re taking withdrawals. So, can you stand 20,40 50% loss as you’re taking withdrawals? Probably not but we don’t do the math or ask someone to help us do the math so that we can get out of her mind and said that that works fine but those were various times and no it’s a practice that was friendlier When we were making contributions when markets are declining.

David Scranton:  How do you teach that though, I’ve seen studies that investors do-it-yourself investors, in general, tend to have too much confidence and you know I’m a pilot and when you learn how to fly and you’re playing the FAA teaches you-you know .how to how to get over some of those things whether you have the characteristic of being Macho or impulsive or the feeling of invulnerability so in the 30 seconds that we have the question becomes, how can we and bring that back?

John Grace: Well, to continue to be a pilot you have to be tested so it would be appropriate for us to test our assumptions to run the analysis to look at let’s say if we just go back to 08 09 that those who were taking withdrawals instead of making contributions or suppose you weren’t having to take required distribution issues or past 70 and a half so let’s run the numbers so that you can see, is the evidence there that I could whether or let me ask it a different way what loss could you accept to see that your account is effectively unaffected by those losses are supposed to believe that (inaudible12:51) buy and hold always works

David Scranton: You can’t ask people to manage themselves and of course you must ask people to manage themselves which is the hardest thing but hey you live in California, so you know if any states that is willing to pass a law that says you need to have a license to do your own Investments California might just be that state. Stick with us please we’ll be right back in just a minute and you too stay with us for a lot more from John Grace

David Scranton: So far, you’ve done your top-down analysis and identified your goals and that should give you a clever idea of the amount of annual income you need for retirement but before you-you have to figure out how much is going to come from your savings and investment, you will need to identify the retirement income that you can really count on. obviously one of the most significant things for Moore’s people would be Social Security and as with any income source you want to take the appropriate steps to get the most you possibly can out of secure Social Security there are several strategies that you can use to maximize these benefits and reduce your tax burdens financial advisor Social Security can help you with those. But if you want to start by getting a basic idea of what your benefits will be, you can do that also. As you may know when your benefit is calculated it will be based primarily on two things first the age at which you applied for benefits and second how much you have earned over the course of you’re working career.  Based upon those two factors you can do some calculation on your own and determine roughly how much you are expected to get using the following resources. Visit and use Secure Retirement investigator which gives you your earnings history after you have entered some personal data, or you can use one of the three of the address on the screen.  Once you have estimated your Social Security benefits it is time to identify any other known sources of retirement income. The pension is a good example here. Or, if you intend to work as a consultant after leaving your job that’s another good very good example. Obviously, if you plan to get other part-time jobs whatever the income source add it to your Social Security benefits, then measure that to whatever number you came up with after doing your top down financial analysis and calculating the cost of your goals. Those for Simplicity sake let’s say you’re top-down analysis again did in fact Ravine that you can continue living the same Lifestyle on that $70,000 that I mentioned a moment ago and save $100,000 after retirement thanks to all the expenses that went away But after calculating the estimate of your goal the estimate came back of the $80,000 then when you added  your estimated income from Social Security and your pension will say a total of $40,000 well now you know that you need your assets to provide an additional $40,000 annually to have the kind of retirement that you desire, How much do I need to retire? And this is just one example of course. Depending on your goal and the results of your top-down analysis you can need considerably less than $40,000 annually from your Investments or in some cases you might possibly need more. Either way, the next question you need to answer is this.

How much money do I need in a lump sum in retirement degenerate that $40,000 a year now that is a trickier question why? Because there’s a lot of variables of unknown type that exist here. And the primary levels are and believe it or not they are connected. number one how much do you need depends on how you invest your money and number to consider and they may also depend upon your longevity. I’ll explain that a lot more in a moment while identifying a lump sum is important it is equally important to have an asset allocation helps ensure the lamps won’t be depleted before your death we’ll talk more about that.  You may have heard the financial rule of thumb the 4% rule it proposes that for average investors the most they will be able to draw from their retirement account each year without running out of money will be 4% per year. Now what you may not know is that the recent Studies by Morningstar that today’s investment environment of low interest rate an overvalued stocks the same withdrawal rate for investors no stance I’m just about 2.8% per year as with similar studies this one is based upon Monte Carlo analysis which seeks to identify a figure that gives you a percent chance of success in this case and 90% chance of success and in this case success Simply means not running out of money so  even at 2.8% the study concludes that there is a 10% chance of depleting their assets and running out of money. Why? Because if you’re withdrawing money from your account to meet your income needs even at just 2.8% per year.

You’re depending on the markets to grow into and to replace your withdrawals but as we all know the markets fluctuate sometimes dramatically and after the age of this year so you start to lose the luxury of time being on your side to recoup big losses that’s why I’ve stressed many times on the show that taking income from principal TD cash flow from principal 10 years of retirement is a Slippery slope. For example, just selling shares from a mutual Found every year I need your income need you’re engaging in a backward strategies cost to reverse dollar cost average. Basically you end up cannibalizing your account because you have to sell more shares to make the same amount whenever the market drops and this is where your longevity becomes a variable  when determining the lump sum that you need, cannibalizing your assets may not matter if you only live Ten Years After retirement but if you live l longer the question of you running out of money becomes a Race Against Time, your longevity is Much less a factor if your income isn’t coming from principal,  and instead coming from   interest or dividends as we’ll see you in a moment but once more dictates at 2.8% per year need a lump sum of 1.5 million dollars to meet your $40,000 per year needs where has a strategy closer to your 4% rule will only require. In the end the question of how much money will I need in a lump sum to my income needs is only a part of the equation the more important question is What asset allocation gives me the best in meeting my information without the risk of the freezing my assets and that answer lies on having the right Focus and not falling prey to outdated ideas are misconceptions again we will talk about that also coming up just a bit on the show right now it’s time to welcome back John Grace from investment Advantage Corp John thanks for sticking around.

John Grace: Sure thing

David Scranton: Talked about having a license to manage your own investment in all seriousness hopefully we’ll never happen but it’s funny because in flying we have all of these acronyms that are designed to have as check ourselves and whether we’re good healthy enough and energetic enough to fly and things like that so what can you do other Then talk to people one at a time what can we do to educate the public so that they can check themselves periodically throughout their pre-retirement planning to make sure that this phenomenon does not happen.

John Grace: Well one of the things that we can do is to check our assumptions to go back to see if what I believe is really, going to hold water or keep displaying in the air as supposed to believing that everything is fine one of the things that we also need to check is that assumption in terms of our longevity expectations Many persons in particularly believe as you know, that I’m going to die before my dad or just before and that’s where we set the marker

David Scranton: By the way, John do you know why husbands typically die before their wives?

John Grace:  Because they can?

David Scranton: Because they want to be that’s why okay go ahead, John. I’m sorry to have interrupted.

John Grace: That’s terrible Dave that’s terrible, so

David Scranton: I have just alienated have my audience, by the way, oh-oh well

John Grace: You know in many cases, seeing a disparity between the Haves and the Have Nots interview of longevity. Those who have more seem to live longer, In spite of their habits those who have less maybe they’re not as interested in pissing off the people that used to piss off No I am going to suggest that we set or planning stage at 90 or 100 to see how will the money run out before I run out. Let’s run the numbers to see these withdrawals if they have to increase to satisfy requirement distribution or inflation or whatever it might be If I am going to live to a hundred  can I see this account going to last particularly if I see a significant decline in that market or evaluate some of the tools that are out there that are really magnificent for investors to see what kind of loss can you accept not just percentages because nobody gets that but dollar losses.

David Scranton: I guess the answer my question then I guess we just have to become evangelist people like yourself people like me would have to become evangelist too, everything is self-monitoring and to let people know that they need to make these checks on a regular basis and unfortunately time flies when you’re having fun so we have to leave it right there for another show.  More to come on the income generation

John Grace: My pleasure Dave see you next time.

David Scranton: So up to this point you have done your top-down analysis, you have examined your goal you have added up your Social Security horses and you have a rough idea of how much money you need your assets to generate each year to achieve your goals. You also understand that that’s not enough to identify one single lump sum I’m going to need your increments, it’s just as important I believe to have a strategy to avoid the risk of spending down principal it decreases the danger that you will run out of money. So how do you find a strategy the answer to have heard me say many times on the show start with shifting your focus? Too many people I believe our latest think that the best way to increase their environment income is to focus on portfolio within maximizing total return it’s based on the misconception that return and growth is anonymous when in fact that total return is the product of two things growth plus income. as explained before the income portion comes in the form of interest and dividends while growth is measured in capital appreciation but Based on this misconception a lot of people believe you must increase growth and that’s the best way to do that is to traditional buy-and-hold investment in the stock market or in mutual funds, in other words, these people have the idea that in order to increase your retirement Is there an increase your risk.

The problem with that is if your growth turns into shrinkage because of a stock market Plunge in the return also shrinks and so does your income. Investors have experienced this twice so far from since the year 2000 and when that happens and increasing the odds of growth-based strategy you will be forced to spend down more of your principal to meet income needs, which of course then increases your odds of running out of money on the other hand, when you’re focused on investment strategies like income the “i “not the “G” the income instead of growth. You’re typically investing In things that are designed to satisfy your income needs and dividend which means you don’t have to take it from principal which over means was also designed to reduce the risk of volatility and the risk of shrinkage when focusing in on income invest into vehicles that you know you can Ensure or that come with guarantees from the issuer to let you know that your money is secure as a generous income in other words although increasing your portfolio cool. Might increase your risk in my experience the better approaching Your retirement income lies in reducing your risk and focusing on day I” and not the G” Once more you continue to grow your portfolio organically by focusing on income how by reinvesting that income that you don’t need into other secure strategies the result in my experience is reasonable portfolio growth with a lot less risk and interest in dividend income that you can rely throughout retirement the  range of today’s low environment of 4% or more and at that rate you only need a lump sum of a million dollars to satisfy that $40,000 income need per year.

As compared to the 1.5 million you need at a 2.8% withdrawal rate, as we have seen focusing on income decrease the odds of you having to spend on principle or to suffer a real insignificant major stock market correction.  Now it’s time to welcome our next guest Tommy Brown, Pastor Brown is a writer-speaker and financial development strategist who has writer, speaker and Financial development strategist who has written a interesting book entitled The Seven money types. It’s a test that will put on our website with 25 questions like a personality test, only this test will compare you to the 12 apostles so at the end of this survey you will be able to determine as Pastor Brown says discovering how God wired you to handle your money. So, Pastor Brown welcome to the show

Tommy Brown:  Hey, David. Thanks for having me on today.

David Scranton: Before I start asking you a question I need to say to our audience, the Jewish folks hair that are watching don’t get all offended because most of this comes from the Old Testament so it applies and you know what for the Muslim Folks that are watching the show and may not directly apply but I guarantee that you will get some gems out of it so stay with us here Pastor Brown tell us why you wrote the book?

Tommy Brown:  So, I’ve helped a lot of people over the years budget and save and get out of debt and all of that but I started to recognize even when you’re at out of debt, even when you’re saving, investing and all of that anxiety all of the effect Emotional aspects of money will go away when you have a really fat bank account so I wanted to help people understand why they do what they do with money so they can do more of what they love they can resolve tension between themselves and in others and I just clear up all of the shame and anxiety and guilt that we have around finances

David Scranton:  Effective. So, all the teachers are watching are thinking, hoo, hoo, he knows Bloom’s taxonomy he said effective.  So, give us a brief overview of those diverse types and a few seconds on each one and maybe you could drill down on a couple of them, maybe the ones that I think apply to me perhaps?

Tommy Brown:  So, they’re seven times each one is based upon a figure of the Old Testament and the reason why we base it on that is that we see in the life of this biblical figure that they Relate to resources not like money necessarily but resources in general from this pastor of motivation so the first one is the Abraham type and that type of gloves to use money to demonstrate hospitality. The second is Isaac and that’s your maximizer and it’s all about discipline and making the most of every dollar the third type is modeled by Jacob, the Jacob type is about Beauty creating pleasurable experiences and moments, The fourth type is Joseph  that’s your networker, The connector fifth type is Moses  which is all about endurance and Order this type has like budgets for their budgets and the Aaron type is about sacrifice and humility loves to use money to meet needs social justice and then that last type is going to be the David type and that’s about leadership creating new future they’re very entrepreneurial there also very much about the Next Generation.

David Scranton: The David type!  Wow I like that one. Let’s talk about the Jacob type the pleaser, how can somebody tell when that’s them

Tommy Brown: Show at the Jacob type they go over the top on everything so they’re throwing their child’s birthday party it’s not enough to just have color-coordinated cups and plates, they’re probably going to bring in (inaudible 30:32) Full on acrobatic show  in the backyard  that person who just can’t have the purse but also have to have the nice purse they-they have a  flare to go over the top  and extravagant and that’s not always  bad  there is a shadow side to each of these and the shadow side of the Jacob type but at very best who doesn’t want the person who is the life of the party who loves to use money to create pleasurable experiences and moments but that is different from the others, so It’s important to say that none of the 7 types are bad but the point is the claim your type using in a way that’s healthy for you and realizing that other people are different and that’s where the tension comes in

David Scranton:  Which type would you say in your experience have the greatest chance of financial success Flourishing financially

Tommy Brown:  If we’re getting success by typical American Western standards and that’s you know is very, you might be a (inaudible 31:29) to those types of things I would say that type that are going to think about money and that Sarah is going to be her Isaac type your Moses type and you’re probably your David type as well. Your eyes archetype is very much on point very disciplined, your Moses type is very ordered your David type is always creating a future with money so very entrepreneurial in that end

 David Scranton: That’s great you know when we’re back in just a moment we’re going to talk about some of the other types  and if you find that you fall into some of the other four characteristics than what can you do to kind of keep yourself from checking and making sure that doesn’t sabotage your own retirement so stay with us, How do you stay with us also or income generation dealers we have a lot more from press the brown when we come back we will do right back here on the income generation.

David Scranton: But obviously answering the question how much I need to retire is a bit more involved than figuring out the cost of a trip to a ballpark. But it is also not rocket science and you can get a good idea following some of the guidelines that we have shared starting with your top down financial analysis. But, once you can determine dollar amount and recognize the importance of focusing on income that growth that’s a very qualified financial advisor can be valuable he or she can be crucial and how to get the allocation right and as I discussed on a recent show a good advisor is like a chess Grandmaster. While a good chess player typically sees a couple of moves ahead on a chessboard a Grandmaster can see 7 moves ahead. In a similar fashion average person’s typically see is no more than 5-10 years ahead when planning a good financial advisor can see 30 years ahead or more that means that he or she is able to prepare for more possibilities and more contingencies a perfect example of this that we have discussed Health care cost.

Although we calculated health care cost General living expenses for our top-down analysis the reality is that the impact can be more substantial why because Health Care medical cost increase general information since 1948 the price of Medical Care has grown at an average interest rate of 5.3% compared to 3.5% for the CPI index.  in other words, Healthcare and medical cost are essentially doubling every 12 years or so that means by the time a couple in their sixties today reaches their 90s the need for full-time in home health care would have reason from the current 200,000 dollars a year or so all the way up to 800,000 thousand dollars a year for full-time Home Health Care. That’s a contingency anticipate on their own but one that a qualified advisor can help them be better prepared to meet the right allocation, it’s also one that clearly illustrates principal for the later years is so crucially important. So yes, the bottom line is you can probably answer the question how much I need for retirement on your home if you follow the steps you have an outline on the show but when it comes to determining how best to meet your needs with running out of money most people can then benefit greatly with the help of a financial professional. Now let’s welcome back Pastor Tommy Brown writer speaker financial development strategy who has written a interesting book entitled The Seven money types, Pastor Brown!  Thanks for sticking around

 Tommy Brown: hey I appreciate it

David Scranton:  I absolutely, so I took some notes Here, as you were talking, and you mentioned…  you talk a lot about the Jacob example it seems to me that Jacob and Abraham are similar. Am I missing something?

Tommy Brown: you’re exactly right so the Abraham type loves to use resources to make other people feel special or noticed they’re very free flooring, they’re very other-centered your Jacob type can be that way as well they’re always thinking about how they can bring things to life there always scanning the crowd a little bit of a performer in there maybe some of an artistic tendency. is also very other-centered but there is a difference there so your Abraham type is all about hospitality  Your Aaron type is about meeting means making sacrifices really what we’re doing pull it back the layers and saying what motivates me so any type can be generous but what am I trying to accomplish but what gives me life, what gives me energy and so again as you said on the onset of this you don’t ascribe to any particular religious system or believe that’s fine you’re still going to recognize this types in yourself or  perhaps in your partner.

David Scranton:  So, In those cases some of them we have mentioned Abraham Jacob what do you do if you read your book you take the test and you say uh oh that’s me it’s not one of the three that Pastor Brown said on television that would give me the highest chance of the Western World definition of financial success so what can I do about it.

Tommy Brown: So, we are wanting, not just go after the typical definition of success what I’m most concerned about is a holistic sense of financial well-being using money in a way to align my deepest sense of values and joy and a lot of people look at the Isaac type the Moses type and the David type and say that’s the best one and the rest of them feel a lot of Shame about it and a lot of times they get stuck.  So whichever How can I Gain self-understanding how can I become aware of some of my attendance is so let’s go to the Abraham type who loves to use the money for hospitality.  so that type is going to spend money on hosting and giving gifts more than any other time in their budget so we are after we have to be aware of that so we don’t blow the budget the shutter side of Abraham type is self-reliance self-sufficiency They give them to give and give but they have a hard time receiving so this is really about formation growth and development so that can lead into what gives me joy and I can make sure that I’m growing in the shadow side area not trying to grow the shadow side but to grow in that area.

David Scranton:  What half of it is really knowing yourself as Socrates said to know that I self and knowing things that could hurt you and make sure that if you are a giver you don’t give so much that you have nothing left keeping it in check, good point!  we’ll be right back, stay with us for one more segment correct all right I love it and you stay with us too because we have lots more from Pastor Brown on the income generation

David Scranton:  so we’re back again, so we have talked about several times but one that we haven’t talked about yet is the networker Joseph. What do you mean by Network?

Tommy Brown:  I’m talking to you into the lives of the seven biblical or characters again whatever Faith or tradition you come from this is like macro-level wisdom here we can learn a lot from the Jusuf type which is about networking is about Connections and we see in Joseph life he was done wrong in a lot of ways and he built his way back up and that was all about the nature of his relationships and ultimately his faith. As well, The Joseph type is kind of the mayor of whatever this person does so there is going to be a lot of boards Council meetings probably doing a lot of lunches dinners and they’re involved in everything and if you’re ever out of work you want to know a Joseph type because they can open doors of opportunity so they’re very much the holistic network  and  web of things probably can think of A few people that you are like yes this person loves to use money in order to open doors opportunities networks Fortress connections in a relationship they can’t establish and they can manipulate.

David Scranton: probability Western definition of financial success the ones the Isaac the Moses The Davids do you share concerns in the book about perhaps they’re focusing so much and that they don’t enjoy life as much fulfilling and if so what are they doing to become more balanced in that way?

 Tommy Brown:  You really need the David and so that the Isaac type that virtue That they bring for the strength of their bring his discipline maximization but the shadow side is fear and because they can be fearful of their financial future they tend to be a little bit more miserly greedy utilitarian so I want that Isaac type to lighten up a little bit enjoy life go ahead and buy the $10 that you know it’s a waste of your money and live life to the fullest while you’re at it. You’re David type as well leave so much in the future that sometimes they forget  who they are what they are and this so identify they’re personalized identity with their work that whenever their work isn’t going very well or they don’t have something new on the horizon then they are just like so what am I doing and what’s going on so I walk each of the types through growth and exercises in the book on how to improve upon that shadow side how they relate to other people who have different types as well so we Are about formation we are about growth so that when we understand why we do what we do with money we can change how we handle money

David Scranton:  That’s great I think it is a poetic thing that my Mom and Dad show the name David for me because my ears are getting hot when you’re describing David so where can or audience find your book.

Tommy Brown: You can pick it up on any of the online Outlets and in your local bookstores as well it’s available on Kindle paperback and Audible and they can also take the quiz you mention it will be an available link on your website or it’s on my website as well Tommy Brown.

 David Scranton:  Or Chris will be on their income generation.com website, that’s the income generation dot-com Pastor Brown thank you so much

Tommy Brown: David has been a pleasure and thanks to you

David Scranton: We’ll be back after these important messages on the income generation

David Scranton:  I don’t know about you, but I had a fun time on the show today and I’m hoping that you did too and I’m hoping that you have learned a lot. First of all, John Grace came on and said that 26% was the common score on that test for Baby Bloomers I know our viewers on the income generation members are a lot smarter than the average Lots, you probably would have scored better but still, you have to admit that’s pretty scary statistic. Tommy Brown, I love this book I’m going to read this book I wish I had a chance to read for the show today I encourage you to get his book also and to read it and then come to our website and to take that test and again that website is going to be on the income generation.com you know I open today talking about sailing off into the sunset, as a metaphor right and it is fitting on two levels first we all want to look forward to retirement as something enjoyable and peaceful just like selling second the reality is retirement yes is expensive just like feeling and just as how you would decide to take up selling without pricing boats and adding up all the expenses first you shouldn’t go into retirement without first trying to answer that basic question how much do I need to retire so working with an advisor at this point I believe is oftentimes in your best interest. For the very reason that we talked about today including The reasons that John Grace mention today especially decreasing your risk of running out of money by spending down principal  a professional can also draw on his expertise and the expertise of others to take other factors  and contingencies into account things most people wouldn’t think about if he or she is the right advisor here she will work with you to develop the best strategy for you specifically based upon your goals and if she is right advisor that person won’t put you in a one-size-fits-all plan based upon an outdated Financial rules and misconception like what we talked about earlier that growth equals return weather increasing income requires risks. In fact, as we have seen neither of those supposed rules is accurate the bottom line is yes, it’s a good idea to take time to answer the question how much I need to retire just keep in mind though that there’s a right way there to get the best answer and getting it is only a small step and getting a successful retirement strategy. Now it’s time once again to thank all my guests for joining us today for another episode of the income generation and I would like to thank you for our new and returning viewers and we look forward to seeing you again next week here on the income generation.