During KHTS AM-1220’s latest “Total Financial Safer Money Hour,” Santa Clarita financial advisor Arif Halaby discussed why age 60 is the magic number to retire, and what prepared investors can do before and after they reach that threshold to preserve their wealth.

“You can retire earlier, and sometimes people do,” said Halaby, a Certified Estate Planner. “But you have to make the right money moves.”

Some of those “money moves” include diversifying, according to Halaby.  

For example, Halaby advised anyone looking toward retirement to work on saving money in a variety of ways in order to protect themselves from economic crashes such as the 2008 recession, during which the average loss was about 50 percent of wealth.

Show Host Arif M. Halaby

“Hope is not going to be a financial strategy,” he said.

“There has to be a goal in mind,” added Jeff Girard, Halaby’s co-host. “When we’re talking about money, it’s very easy to just stockpile money… And not know why we’re doing it.”

However, stockpiling money can actually lead to hardships for those who are done working or are cutting back on the time that they work.

“For a lot of people, they think, ‘Oh if I have a million dollars, or half a million (I’ll be fine),’” said Halaby. “(But) we don’t spend lump sums every month, we spend monthly income. In other words, we spend paychecks.”

He continued that the reason social security doesn’t pay a lump sum when recipients come of age is that most people are used to receiving a monthly allowance in the form of a paycheck.

“Just like you were used to getting when you had a job. It’s the same concept,” Halaby said. “(If you make a poor decision with a paycheck), you have 30 days of a mistake instead of the rest of your life.”

Related: ‘Total Financial Safer Money Hour’ On KHTS: Retirement Planning Strategies

Girard advised that those managing their finances look towards age 60 as a way of testing how much they can pull back from working.

“For the folks that are looking to do something retirement-wise, age 60 is a pretty good benchmark,” he said. “It’s a good gauge to see how much money you should have by this time in your life so that if you want to stop or work less… this is a good time to start looking at that benchmark.”

He added that many come through the Total Financial Solutions office with enough money to live on for the rest of their life, but continue to work as though they have nothing in the bank.

“These are some of the things that we should be answering and thinking about and addressing before the age of 60,” said Girard. “Sixty is a good number that people work towards for retirement.”

Halaby said that although a lump sum might look tempting, the promise of a steady income after age 60 is almost always a better offer.

“Accumulating assets is one thing,” he said, “but having guaranteed sources of income that you can’t outlive, that’s an interesting concept.”

Total Financial Solutions offers assistance with preparing for retirement and financial planning in Santa Clarita and the surrounding valleys. Santa Clarita financial advisor Arif M. Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. Halaby is also the host of “Total Financial Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners from Santa Clarita financial planning tips and guidance for dealing with today’s ever-changing financial needs.  

Total Financial Solutions, Inc.

24322 Main Street

Newhall, CA 91321

661-753-9683

800-990-7344