Hello, once again, I'm Tony kenzi. You're and my topic today is the retirement redline. As folks approach retirement, there's a big question looming in the background. Will I have enough money? If this is you, and I asked this question of you, how will you answer? You perhaps cannot give me more than a blank stare?

That's because it's hypothetical. And there's no way to really know. Today we're going to get you closer to a real answer. All you have to do is stay alive and keep spending money. If there is a red line in your future, your life is going to change and probably not for the better. There's a software program developed by some very clever people that will tell you if there's a red line in your future and when it will appear.

You now have a good understanding of what retirement is all about. And that you're going to need financial reserves to live your life. You've set a target date for your retirement and you have an idea how long your retirement is going to last. If your projected retirement date In 10 years or less, knowing if there's a red line in your future is critical information. If there is, you'll at least have some time to figure out what you have to do before it's too late. Earlier, I gave you 12 reasons why you might go broke.

The next step is to discover when or if you might go broke, even if you avoid any or all of the 12 reasons. By extension, do you have enough time left to fix the problem? Sooner or later you are going to retire over many years and after working with hundreds of clients either planning to retire or already retired? Will I have enough money is among the first questions I'm asked if the numbers come back and there is a red line, but not until you're 110 years old, for example, it probably means you didn't spend enough money. But if it appears at age 75, then you probably have a real problem to deal with. Backing up a bit.

A basic premise of successful retirement secrets has been to teach you the right questions to ask that if you ask the right questions. The right answers will appear. Now you could realistically prepare to enjoy your retirement and work on your bucket list of things to do without worrying about a negative outcome. Another way for us to express today's big question is this. Will I run out of money before I run out of life? The answers to these questions come by analyzing what you now spend, what you plan to spend in retirement, your projected resources to provide a monthly income in retirement, whether your resources are growing or shrinking, and whether or not your spending habits are going to create a problem.

The software I'm talking about was created by Thomas gold solutions. It incorporates and integrates all the many variables that define someone how much you spent on food on entertainment, insurance, transportation, utilities, shelter, etc. The list goes on and on. I've used this for many clients and it's often a real eye opener. You'll have the ability to access this software and run projections for yourself. It's really designed for financial advice.

But there's a free 30 free 30 day trial if you want. So go to the website I put up on this slide and explore. The program incorporates all the elements of income pensions, withdrawals from retirement accounts, Social Security withdrawals from non retirement accounts. It allows you to estimate the likely return on investment on each and whether or not any pension income has a cost of living adjustment every year. If you're good at budgeting, you may already know what your core expenses are every month. Those expenses are more or less defined your standard of living.

If you own a house, think mortgage payments, insurance and property taxes. The program allows you to play with inflation numbers and many other variables. So you can come up with a solution that hopefully you could live with to avoid running out of money. The software based on all the variables entered generates a projected stream of income offset by expenditures and taxes. If you're lucky, no red line will appear. But if there is a red line, it means one of two things, you must either plan to spend less money or start with more money in your various buckets.

Let's presume that a red line does appear. What that means is that based on the numbers you enter, the software tells you when or if you're going to run out of money. I think you're going to want to know this sooner rather than later. If it appears early in your retirement, what are you supposed to do? One choice is to alter your standard of living. Alternatively, you might start putting more money away every year.

A bad alternative is to die before the red line appears. There's probably lots more alternatives but those should get you started. On the other hand, you may discover there is no redline or if there is one, it appears when you're already 110 years old. At that point, you may not give a damn. Alternatively, you may discover that at age 100, you still have several million dollars in the bank. Unfortunately, that also means you shortchanged yourself during life, since you can't go back and spend it before Before we end this lesson, I've got two more hypotheticals for you.

The next slide shows you where you might be living and driving if you have an early red line. The slide that follows this one is where you might be living and driving. If you plan well. You might be here living the not so good life. Or you might be here, maybe living in more comfortable surroundings. Where will your red line show up?

Join me on the next video module two lesson video six, where we talk about the five basic truths every investor needs to know