Green Retirement F.A.Q.
Answers to your Green Retirement Planning Questions
Frequently Asked Questions
How does Green Retirement Planning save me hundreds of thousands of dollars?
Tradtional retirement planning over estimates the amount of savings you need to pay for retirement. The retirement industry guesses, that you will need between 70% to 80% of your current earnings, annualy in retirement. It is a guess. However, this guess will force you to save much more, than you need for your retirement.
Example:
Using the traditional retirement formula, a couple earning $80,000 per year will need $1,600,000 to retire, a couple earning $120,000 per year will need $2,400,000 to retire. That is an $800,000 difference. If you earn $120,000, and retire on an $80,000 lifestyle, you've just saved $800,000! You have reduced by $800,000 the amount of savings you need for retirement. You could save even more money if you want to, it's up to you, with Green Retirement Planning you are in control of your retirement.How does Green Retirement Planning enable me to retire years earlier?
Because Green Retirement Planning reduces, the amount of savings you need to pay for retirement, it enables you to retire earlier. Taking the previous example, of the two couples earning $80,000 and $120,000, and the $800,000 savings that can easily be acheived. You can calculate how many more years of working would be required to generate the extra $800,000 you don't need for retirement. Saving $2,000 per month, at 10% annual rate of return, it would take you 15 more years of working to earn the addtional $800,000 in savings.
See Also, Green Retirement Planning, Consumption Assumption,
What is the difference between Green Retirement Planning and traditional retirement planning?
There are many differences between Green Retirement planning and traditional retirement planning.
Difference Traditional Retirement Planning Green Retirement Planning Cost $1500 or More Free or $375 Accuracy Guesses Your Retirement Savings Needs Calculates Precisely Your Retirement Savings Needs Method Savings and Earnings Savings and Spending Safety Varies Depending on Planner and Method Uses Safe Withdrawal Method Here is the most important difference:
Traditional retirement planning uses an inaccurate "Consumption Assumption" (the 70% - 80% of your current earnings figure), to guess the amount of savings you will need for retirement. Green Retirement Planning uses your spending in retirement, not your current earnings, to determine the amount of retirement savings you will need. Green Retirement Planning is accurate - tradtional retirement planning is a guess.
See Also, About Retirement Planning, Consumption Assumption
Why is it called "Green" Retirement Planning?
Green Retirement Planning was originally developed to encourage sustainable retirements. Enabling people to retire, earlier and with less savings, by reducing their consumption. The planet is in peril due to over consumption of it's resources. Traditional retirement planning is based on a "Consumption Assumption" - Green Retirement Planning is based on conservation of your financial resources and the planet.
How much does Green Retirement Planning cost?
If you do it yourself - free. If we create your retirement plan the cost is $375.
Why should I hire you to create my retirement plan?
Accuracy is the most important reason. You will pay 5 times as much, for a traditional retirement plan, and receive a guess in return. If you are about to retire, planning to retire early, or you are unsure you have adequate savings to pay for retirement, you should get a Green Retirement Plan.
Also, even though Green Retirement Planning is a simple concept, your financial situation, may not be so simple. Social Security, Medi-Care, 401k's, IRA's, pensions, annuities, etc. All have an effect, generally positive, on your retirement plan. They are a factor, in the amount of savings required to pay for retirement. We examine all your assets and future income streams, and may find ways for you to save even more money, and enable you retire earlier.
Can I see an example of Green Retirement Planning in action?
Yes. Green Retirement Planning was put to the test in San Francisco, California, the second most expensive city in the United States. Using Green Retirement planning, a couple age 65 could retire with less than $400,000, a couple age 40 would require a little over $750,000. In either case, retirement in San Francisco was possible, with less than a million dollars. See all the study articles here San Francisco Retirement.
Why is Green Retirement Planning safe and secure?
Green Retirement Planning uses the "Safe Withdrawal Method" of calculating your retirement budget. This method has been tested by countless people, including the developer of Green Retirement Planning, and is proven to be the most accurate method of determining the percentage amount you can safely withdraw annually from your retirement savings without running out of money. The percentage is between 3%-4.75% depending on your age at retirement. These percentages were calculated by taking the worst 30 year period, over the last 50 years, for the overall stock and bond market.
What is the "Secret" behind Green Retirement Planning?
You determine how much you need to spend in retirement, therefore, you determine how much savings you need to pay for retirement. If you spend less - you need less savings. It sounds logical, and simple, yet it is a revolution in retirement planning. By creating a Green Retirement Plan, that takes into account both your savings and spending, you can accurately discover how much savings you will need to pay for retirement. By adjusting your spending, and you have control over your spending, you can reduce the amount of retirement savings you need dramatically.
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