6 Financial Rules of Thumb to Avoid

Have you heard a financial rule of thumb and considered using it for yourself?
From the 100-minus-your-age stock allocation rule to the 70% to 80% income replacement myth, James breaks down why rules like these can be counterproductive and suggests alternative strategies that will help you create a personalized financial plan that meets your unique needs and goals.
Questions Answered:
Which rules of thumb should not be universally applied?
What can you do instead?
Learn the tips & strategies to get the most out of life with your money.
Get started today → www.rootfinanc...
_ _
For more resources and content, check us out below!
🔔 Subscribe to our channel to learn more about all things portfolio management / @rootfp
🎧 Listen to our podcast readyforretirem...
🧑‍💻 Visit our website www.rootfinanc... to learn more about us
👥 Connect with us on Facebook / rootfinancialpartners
📷 Connect with us on Instagram / rootfinancialpartners
🔗 Follow us on LinkedIn / 18347030
_ _
⏱Timestamps:⏱
0:00 Introduction
2:36 The First Rule
5:57 The Second Rule
9:04 The Third Rule
11:48 The Fourth Rule
14:04 The Fifth Rule
18:08 The Sixth Rule
20:09 How to Measure Risk
22:02 Outro
Other videos we think you'll like:
About Root: • Financial advisors wit...
Worried about retirement? Start here: • Worried About Retireme...

[@Rlskis1967]

The other rules of thumb strategies that should be taken with a grain of salt are the following: having 10X amount of your annual income, or needing 70% of your income. This is all dependent on your expenses as you may have much lower expenses in retirement. You also need to keep in mind, during retirement you will no longer have to pay FICA or having 401k deductions, since you will no longer have a paycheck. Knowing your expenses is key.

[@robertgreg6009]

Inflation is going to gradually going to become part of us and due to the fact any money you keep in cash or in a low-interest decline in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income,investing is the only way most people ever make enough money to retire.

[@MichaelToub]

Great Video!

[@Andrew-zh6jl]

Love the in-depth content James; and appreciate the details on risk/standard deviation, life expectancy and uneven portfolio withdrawals during retirement. Quite a master class in retirement details we’re receiving.

[@madstarr2]

Do you operate in Georgia?

[@jeffreymcdonald8723]

great

[@clbcl5]

Rule #1, I'm retired but still a teenager.

[@jeffpodemski3137]

Great job. JAMES. The best advice for eternal security is to give your life to Jesus. Then you will live forever with God in heaven.