Personal Investments • An initial plan for someone in their 40's

Trying to help a family member with a plan for retirement. The person is in their 40's. They have 403b, and a pretty good job. I don't know how much they have saved up. They are not that investment savvy, but seems to know that the market is volatile. They said they plan to leave it alone and let things accumulate. They apparently don't look at their networth all that much.

My thought the approach would be.

1. Gather list of existing funds like how much is in the retirement accounts, how much in banks. They don't seemed to have real estate and other investment.
2. Have the person go to SSA and get an estimate.
3. Have the person calculate their expense. I would probably just have then do a rough money coming in into the bank and money going out. We need to get an idea of expenses.
4. Check that their bank has 6-12 months worth of expenses. If it's low, have them increase the amount until the goal is reached.
5. Use a tool like Portfolio Visualizer to see if their goal can be reached with the current asset and saving rate. Probably use a 80/20 allocation through an all-in-one funds or a 3 fund portfolio. Aim for a min of 25x expenses with some taken off for SS.

I will see if I can strongly suggest that they to max out their 403b. This is just a high level approach, am I missing anything. I feel at this point, I should be too detail.

Statistics: Posted by gavinsiu — Thu Jun 27, 2024 8:12 pm — Replies 0 — Views 287

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