The Truths about (in)secure Retirement
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The Truths about (in)secure Retirement

Learn the truth about retirement life planning & calculation with the help of an experienced retirement adviser
4.8 (6 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
86 students enrolled
Created by Ching Foo Lieu
Last updated 5/2017
English
Price: $200
30-Day Money-Back Guarantee
Includes:
  • 4.5 hours on-demand video
  • 4 Articles
  • 6 Supplemental Resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Construct your own Retirement Calculator with Scenario Modelling Analysis
  • Implement unconventional retirement factors in Scenario Modelling Analysis not available in traditional retirement calculator
  • Apply the 345 rule in the Retirement Calculator with Scenario Modelling Analysis
  • Execute the 5 level of financial preparation for retirement planning
  • Spot the potential risks which will derail your retirement planning before they happen
  • Plan for meaningful pursuits in retirement
  • Balance the means and meanings in retirement life
View Curriculum
Requirements
  • Basic retirement planning knowledge and an open mind to learn new-age retirement planning methods
  • Have Microsoft Excel 2007 or Newer
Description

UPDATED: JAN 2017

Get rid of that haunting fear about your early retirement Avoid getting financially stressed & miserable in your retirement years when you retire early

Let’s face it, nobody is looking for a ‘budget’ retirement.

Modern day retirement is synonymous with experiencing some of the best things in life, such as dining out at Michelin stars restaurants, indulgent golfing and luxurious vacations.

The aching question in your mind now is this:

I am ready to live the retirement live I've always dreamt of, but I am also feeling terrified that I will soon run out of money before running out of life

It *may not happen, but it is unthinkable if it turns out your longevity genes are better than you think. You are not taking any chances. 

Sometimes, you aren’t really sure if you want to know, it is like having a nagging pain at the back of your head but you keep on avoiding a doctor’s appointment, because finding out the truth can be too depressing.

On the other hand, you absolutely don't want to live like a miser in retirement after years of toiling at your career.

This IS the ultimate reward you have been looking for in your life.

And YES, you absolutely deserved your dream retirement after years of blood and sweat and tears.

This is what makes life worth living.

But right now, you are in a dilemma.

WHICH OF THESE 17 'RETIREMENT PEACE KILLERS' ARE LINGERING IN YOUR MIND NOW THAT PREVENTS YOU FROM RETIRING (EARLY) WITH PEACE OF MIND?

Since 2002, I had been advising a multitude of clients on managing retirement finances. But there is a deeper layer to that than just money. I then began the years-long process of examining  inner psychology to find why people are not retiring with the peace of mind they deserve, despite all the money & free information available.

I discovered a concept I call “Retirement Peace Killers,” imagination of scenarios that could likely materialize with one major mistake in managing your retirement nest egg. Most of the time, it is invisible to even the closest people in your lives because you never really expressed it explicitly.

Take a hard look to see which of these 17 most pernicious Retirement Peace Killers apply to you

  1. Procrastinating at the price tag of everything you want to buy, fearing overspending, even if you are shopping at discount stores.
  2. Never fail to clip coupons and discount vouchers on everything. A penny saved is a penny earned.
  3. Deeply disturbed by the prospect of being at the financial mercy of your relatives or children.
  4. Let your elderly parents down because you are unable to subsidize their daily living costs.
  5. Feeling helpless for not being able to fund your children education to the kind of university courses that will fully maximize their potential.
  6. Feeling frustrated for not being able to assist adult children in buying their first home or preparing for wedding.
  7. Worried that it will ‘exceed’ your monthly budget if you offer to pick up the tab for a family dinner or drinking session with your buddies.
  8. Feeling distressed as you force yourself to stop eating out at your favorite fine dining establishment after the new management increased the prices of everything in the menu.
  9. Feeling agonized that you need to substitute the imported household goods you are using with generic brands because currency depreciation makes everything expensive.
  10. Heart skip a few beats every time any political or economic turbulence shave off 10% from your portfolio overnight before you had the chance to even login to your investment account.
  11. Panic selling more times than you can remember when your retirement portfolio drops more than 4%, cutting loss before it plummet further, only to see it recovers in a week.
  12. Feeling paranoia to read the business section on the newspaper, and deliberately avoid from listening or watching any economic news.
  13. Chronically losing sleep over your retirement sustenance, wondering if you will have enough in the next 5 to 10 years to pay the bills.
  14. Had a harrowing experience in your recent visits to the hospital that your hypertension condition will shave a big chunk off your retirement nest egg.
  15. Desperately researching places like Nicaragua, Panama, Malaysia and Thailand as your second home in retirement to save costs, moving away from the community you are so familiar with
  16. Not able to fulfill bucket list of owning a boat to travel the world.
  17. Not able to fulfill bucket list of owning a boat to travel the world.
That's what gonna happen if you don't have sufficient confidence that your accumulated retirement nest egg can sustain you throughout your retirement years. We’ve all desired about retiring early but don’t want to live below the poverty line in the later years of retirement.

The knee-jerk response is of course to scour the Internet for a miracle solution, hoping that people who have 'been there, done that' will tell you exactly what to do and what NOT to do.

But know this, everyone is unique. You could take bits and pieces of information here and there, and haphazardly patch them together as your retirement plan.

So what will you get?

A Frankenstein monster for your retirement which is neither living nor dead. It will come back to bite you later.

The other knee jerk response is to keep on working, or thinking of cutting your retirement short and take up a contractual/short term positions. Retirement is far from what you envision.

You start to lose hope.

More importantly, the very fact of your anxiety over the 17 Retirement Peace Killers will throw you into a destructive cycle, called the Wheel of Negativity. I've seen so much in the many clients I consult on, and believe me, you don't want to ride in this wheel. It deters you from truly enjoying your retirement years.

**********

Yes, you can absolutely avoid all these Retirement Peace Killers and negativity By following a system which provides consistent income stream, growing with inflation and large unaffected by recession I know because I've been advising my clients on retirement using this system for the past 4+ years

Prior to 2012, I struggled in my practice to advise clients on the kind of retirement portfolio with 95% confidence level to sustain their retirement years. I even put my own money on the line. You know that feeling of seeing your nest egg shrink due to factors beyond your control? I feel the same for my clients.

Although my clients didn't blame me for failing to meet the targeted annual returns due to various systemic factors, I knew I was letting them down.  It was one of the most frustrating, draining times of my life.

In fact, looking back, I almost every financial instruments under the sun: I wasted time learning about forex & commodity tradings, options, CFDs and global macro strategies.  I got overwhelmed by all the advice out there.

But I was learning in leaps and bounds. What are the fluff that didn't work specifically for retirement. Why people are not enjoying retirement they way they should. I went deeper into the psychology of retirement. 

In 2012, I created a 2 pronged system. The first prong to resolve this ever fluctuating sustainable income for retirement, and the second prong - mindset.

I tested it with my existing retirement clients. And monitor the results. Fast forward to now, suffice to say that the results blew my mind. It gave them a peace of mind and elevated their quality of retirement life.

Best of all...

  • You don't need to undertake high investment risks
  • You don't need to use leverage
  • You can use it regardless of any country you live in
  • You don't need to an expert in finance to follow the system

Let me show you what I discovered along the way.

But first, I want to ask you an honest question.

If a successful retirement is as simple as  buying or investing into any of the many retirement products in the market, why are you still deeply worried about your retirement sustainability? BRUTAL TRUTH: SUCCESSFUL RETIREMENT IS ABOUT MORE THAN JUST INVESTING & INFORMATION

There are tons of free retirement articles online.  

There is no shortage of financial products specifically catered for retirement.

And yet, people are still feeling insecure about their own retirement.  

If information and products mattered, almost nobody would be worried about their financial security in retirement. 

The truth is, there's something that matters at least as much as the information.

And that missing piece is a system that integrates the financial and psychology aspect of retirement.

**********

What Motivates me to create this system to help you? Because years in the financial services industry, I became disenchanted with many financial service providers approaches in educating the man on the street on retirement.  This happens everywhere around the world - whether you are in US, Canada, South Africa, Europe, Asia or Australia

As I started growing my business, I started to see through the industry's shortcomings.

What I discovered was that most of the experts were selling 2 things: PRODUCTS & PROMISES. They were happy to sell you a product and wash their hands clean, because they didn't care about your retirement success — they just cared about the sale and their sales quota.

I never wanted to run a business like that. So I spent years crafting my a sustainable retirement system for my clients. It is about impact. I added things that nobody in the industry offers.

Because the brutal truth is that most retirement advice is narrow, simplistic, or downright deceptive.

This is the problem with piecemeal advice, tactics or products: They give you one piece, but never the entire SYSTEM.

In case you are thinking... Is it just about investing bonds or ETFs?

Nope it isn't.

In the initial years when I started advising clients on retirement - like most advisers, I followed the conventional post-retirement investing mantras - invest in high grade bonds.  However, in the recent years, bonds yields fail to provide sufficient income for retirement, eaten alive by inflation. Worse, it is prone to defaults which means you aren’t getting your capital back when the bond reaches maturity..

I also advised clients to invest in index funds that are often touted for it cost effectiveness. However, then we concurred the returns are nothing to shout about.

My system of advising clients in retirement involves enjoying the freedom, being proactive in anticipating next year's income without letting the external factors beyond control affect them

It involves more work up front, but...

Retirees who take this route don't spend much time worrying about what they can't control, and avoiding all the negative emotions caused by it

**********

In case you are thinking...I don't see myself retiring soon, so this is irrelevant to me Sometimes retiring early becomes the only involuntary option. WHY?
  • Technology is transforming the labor market, eliminating millions of conventional jobs even as it creates new opportunities. Which sides are you currently on?
  • Office politics, extensive travelling, no prospect for advancement, management shake-up ...you want to pursue something on your own terms and time using the skills you possessed but you will take a paycut. How will it jeopardize your retirement plans?
  • Your career is taking its toll on your health and/or family. The longer you endure this, the shorter your lifespan will be. Money doesn't mean anything if you don't live long enough to enjoy it
  • Company offer early retirement package (aka voluntary separation scheme) as part of cost-cutting exercise- should you take it and risk being out of job for indefinite time because there is no employable prospect at your age and salary range?
  • You get a financial windfall (shareholder buyout, cashing out etc) - You wonder if you should just sit on it generating risk-free guaranteed return cash deposit rate or you need to invest it more aggresively?
  • Your company or industry is going downhill - if you got retrenched now, do you have enough to last until twilight years?
  • Fear of missing out (FOMO) - with a few more short productive years left in your high-flying career, you are desperate to make the very best use of your earning power to build a [insert your number here] retirement nest egg?


In case you are thinking...I already have a retirement plan, why should I care?

Many of the assumptions on which those plans were based –including sustained low inflation and an expectation for continued globalization – have been upended.

  • Brexit is reshaping Europe
  • Upheaval in the Middle East is having global consequences
  • The U.S. is anticipating reflation, rising rates, and renewed growth
  • President Trump’s fiscal, tax and trade policies will further impact the economic landscape.

What may have worked well for you so far might come to an end. 

**********

This is probably the most comprehensive guide and checklist of ideas/ways/strategies on what you need to do to, in anticipation of retirement. 

It does not overwhelm you from the start as it gradually builds up the fundamentals of retirement planning/calculation. Yet, in the final section, the course provides you with the most detailed/advanced/complete spreadsheet/worksheet containing various retirement formulas - helping you to visualize/simulate things like the year-by-year effect of withdrawal, inflation, etc. 

If you need a quick/fast result now to know whether you have enough to retire immediately, skip to the Advanced section right away. Otherwise, it is recommended that you follow the course intended sequence.

This course is also especially useful if you are in late in retirement planning, or retirees currently in your post-retirement stage - to maximize your means & meaning right now.

=============================================================================

A GOOD RETIREMENT LIFE IS NOT JUST ABOUT HOW LARGE IS YOUR RETIREMENT NEST EGG AT THE ONSET OF RETIREMENT. OR HOW LONG IT CAN LAST.

Most people wrongly think it has everything to do with personal wealth or material possessions.

Living the good retirement life can mean different things to different people. It depends on what really matters to you - your values, priorities or goals in life.

If I can summarize it in one word - it is balance.

Balance between the means and meanings along the retirement journey.

One cannot exist without the other. While it is hard to have meanings without having the means, having sufficient means alone won't guarantee meanings.

Therefore, it is always a balancing act. The name of the game isn't just about rest and sleep until you finally wither away and pass on.

In fact, during your retirement journey, the things and people you value may change over time. There are also market factors will definitely affect your retirement nest egg.

Dynamic situations require dynamic solutions which you need to adjust over time.

This course teaches you how.

==============================================================

You might think - "I can learn all of this elsewhere, why should I learn from you?"

No, you can't. Go google about the detailed explanations of Scenario Modelling Analysis and try to find someone that not only how to implement but also GIVES you examples on its use. 

=============================================================

"Can you make me rich by taking your course?"

No way! Not just from taking the course. Anyone who promises you that is selling snake oil.

What I can guarantee is that you will leave with some perspectives how to manage your retirement nest egg better in today's volatile market.

=============================================================

Tell me again why I should take your course?

If you've read this far down, you already know why. You've always wanted to. So why haven't you pulled the trigger?

Ask yourself this: "What is holding me back?"

Are you afraid you'll actually learn what you've always said you would but never did?

Yeah, you'll have to put in the time and effort. If you're lazy, this course (or any other course or retirement calculator) won't be able to help you.

But if you're serious about learning comprehensively about retirement planning, management and its corresponding calculation, then I can definitely help you.

Plus, you have absolutely ZERO risk.

Udemy gives you a 30-day money back guarantee and they're really really good on that.

So if you've read this far, you have no excuse. You have no risk at all. If you don't sign up, it just means you aren't serious.

Who is the target audience?
  • People who want to construct a dynamic retirement calculator for the ever-changing retirement planning landscape
Students Who Viewed This Course Also Viewed
Curriculum For This Course
32 Lectures
04:41:00
+
Introduction
2 Lectures 03:15

Before creating this course at Udemy, I have been running the same course at RetireMethod.com since 2013. 

Preview 00:01
+
Level - Beginner: Age 30 to 40
10 Lectures 01:41:22

How do most people define success and failure in modern day retirement planning?

And why the very thing most people want to achieve makes them fall into a cycle which takes them further from the actual retirement goals they want to achieve?

And lastly, you will learn what is the fulfillment curve and the diminishing return of it if not managed well.

Preview 18:32

Imagine you are going for a cross-country road trip.

What if you are ill-prepared for the trip? What would be the consequences?

The fact is, retirement planning and management is a dynamic problem due to its nature, so how do you solve a dynamic problem?

Preview 07:35

Most people treat impending retirement as a pure financial issue.

In fact, there are at least 6 common non-financial issues you need to be mentally prepare to face, such as:

  1. Sense of Identity Loss
  2. Poverty Consciousness
  3. ...

In the Advanced section, we will address these head on and how to mitigate the risks.


Preview 09:15

You may already know what will be your financial risks after retirement, but let me give you a new spin on this aspect.

Most people are concerned about market volatility affecting their retirement nest egg; I say, you are looking at it wrongly.

Also, people are worried about the official inflation rate reported, but I advise you to pay scant regard to this.

Here are what to keep your eye on instead.

Preview 09:47

Before the Industrial Revolution, the concept of retirement is unheard of.

Do you know why?

This section reviews how has the retirement concept evolved, which further birthed what we know as retirement & pension funds today.

And how financial services industry came in to serve the the nirvana promised by 'retirement' as we know it today.

Preview 14:43

Now after identifying what rocks your boat (read:passion), you should have developed a better mentality when approaching the topic of retirement.

However, passion alone is too fleeting and unrealistic.

You must also balance things by considering what you do best which people will pay you for it.

Here, you'll learn how to mash up these 2 main ingredients, and others as well.

Especially important in retirement stage.

Note to younger people: Passion comes much later

Why Follow your Passion is a Bad Idea (here's a better way)
08:41

Most people are impatient when it comes to wanting to reach that desired retirement stage.

The earlier they can do so before the mandatory retirement age dictated by society, the better.

In fact, early retirement is deemed a life success.

The truth is, this is a very shallow and wrong mentality.

We drill deep into this issue and uncover the root cause of such mentality.

And then I want to shift your mentality to a whole new level.

Why you cannot wait to Retire
12:16

Retirement is not end of everything.

If you think it is, then you'll be dying inside before you physically die.

Ponder over this  - you've honed your skills and become probably the absolute best version of yourself after all these years in your vocations/career/business (even if you are in a job which you disliked).

It is sensible to just discard all that?

Watch the lesson below on what to do instead.

Retire from [ ] --> Retire to [ ]
09:32

Without a purpose in life, we as intellectual creature will feel aimless.

Insignificant, regardless of the size of our retirement nest egg.

Money is just a means to an end.

In this lesson we will be looking at:

  • The 3 ways people retire - from the least desirable to the most desirable
  • The outlook in life that is crucial for retirement
  • What is the question to ask yourself to increase the odds of fulfilled retirement life stage
  • The Transcendent Retirement
How to retire on purpose
09:46

Retiring before the mandatory retirement age in your country might sounds like a dream, but those who have been there, done that came to realize it is not a bed of roses.

Here are the most challenging things you have to take note:

The most difficult things when you Retire Early
01:15
+
Level - Intermediate: Age 40 to 50
8 Lectures 01:09:03

In this lesson, we want to talk about:

  • What is the difference between Getting Rich and Living Rich?
  • Why people have different mindsets?
  • How to balance between means & meaning?
  • What are the consequences of imbalance between pursuing means & meaning?
  • What is ROL and why this is more important than ROI?
Preview 11:16

A meaningful retirement consists of 7 or more of these intangibles.

The lesson below elaborates in detail.

The 7 Intangibles for a Meaningful Retirement
14:36

Many people got it wrong when planning and anticipating retirement.

They think that as long as you have a sufficiently huge retirement nest egg, retirement will take care of itself.

The thing is - having a substantial retirement nest egg with no vision of how you want to do during retirement is just like having a First Class ticket to...nowhere.

The better solution? Details are explained in the lecture below.

The Non-Monetary Preparation for Retirement
11:35

Most people overestimate their expenses need after retirement.

Huh?

Yes, I said "overestimate". Not "underestimate."

You may retort - how can one overestimate?

All this will make sense after the lesson below.

Going through this lesson also gives you much clarity and hope.

Preview 08:23

In life, there is only one thing we can predict with certainty - is that things rarely happened as planned.

And they said - life is what happens when we are busy making plans!

Because things which occur beyond our expectation may cause financial mishaps; therefore the more prepared we are, financially, to face these adversities, the more secure we are,

This is more important in retirement when income generating ability is lower for most.

The fact is, even normally optimistic things like longevity can be the risk which threatens retirement financial security.

Or even natural disasters like flood or typhoon.

Monetary Preparation for Retirement: Level 2 - Financial Security
08:21

The term 'financial freedom' is over-used in the financial planning circuit, and the concept has been glamorized as the nirvana in wealth accumulation.

The fact is, financial freedom means very little unless one can achieve financial survival and then financial security first.

But to stay at this level, you need to be very disciplined, lest you fall back into Level 1 and Level 2.

Learn what are the discipline needed to stay at this level.

Monetary Preparation for Retirement: Level 3 - Financial Freedom
06:28

The thing about financial freedom is that it is selfish.

Obviously financial freedom is about me-me-me.

But to attain another level higher if you've achieved financial freedom is by having the financial resources to give your blessings to others.

If you believe that the ultimate usage of wealth is to give back what was accumulated to improve lives and meet real needs in the world, then you will be enlightened to learn this lecture.

Monetary Preparation for Retirement: Level 4 - Financial Blessing
04:51

The highest level one can achieve is what is known as financial self actualization.

Popularly known in the pop culture as the Bucket List.

This is possible when you still have financial resources to spare after attaining financial blessing.

For some people, however, they skip Level 4 - financial blessing because they are not naturally charitable. So it is perfectly possible if you attain Level 5 while skipping Level 4 in the process.

I would not judge you for that :)

Monetary Preparation for Retirement: Level 5 - Financial Self Actualization
03:33
+
Level - Advanced: Age 50 & above
12 Lectures 01:47:26

Do you know that by just reducing your monthly expenses by a few hundred bucks at the onset of your retirement, (and then increase it progressively with inflation of course), you are actually buying yourself a few more comfy retirement years?

Else, the other option is to save another $ 200,000.

Is it easier to accumulate an extra $ 200k, or is it easier to live with a few hundred lesser every month?

This is the power of scenario modelling analysis.

The lecture below demonstrate this using a simple example.

Preview 03:55

It is not about how much you have in your retirement funds.

It IS about how you manage your retirement funds post retirement.

Also, understand the 2 important things which conventional retirement calculator may fail to take into account.

2 Critical Retirement Concepts to take Note of
04:56

Here's the mindset all of us should have in modern day when approaching retirement planning & management:

I can no longer assume that any institution has my best interests at heart, and I will assume total responsibility for my financial well-being.

Take charge of your Retirement: The 3 Retirement Attitudes to adopt
02:59

It will be folly to assume it's all bed of roses when it comes to investment return during your retirement. Again, the most crucial thing is how to manage your investment loss intelligently so that your other financial goals are kept as intact as possible.

Traditional retirement model rarely consider this aspect. Real world retirement planning must address this problem, so this course aims to accomplish this.

Preview 04:15

The Retirement Scenario Modelling is based on the following 3 pillars:

  1. Investment asset Preservation & Growth which beats inflation, without utilizing the capital itself
  2. Sustainable Spending from Income generated by Investment Asset
  3. Creative Life Planning

I explain them in detail here.


The 3 pillars of Spending during Retirement
09:13

You will understand what is the 4% withdrawal rule, and why you should ditch this rule in modern day retirement planning & management

Preview 13:21

This is another improvement over the conventional 4% rule. I explain it in detail here.

The 345 Rule: Build a Confidence Interval in Outliving your Retirement Fund
18:04

This quiz is to test your understanding regarding Rule 345

Using the 345 Rule to Manage Retirement Nest Egg
11 questions

You will understand the  alternative to the 4% withdrawal rule, complemented by the 2 most important methods to overcome the major uncertainties in retirement withdrawal stage. 

The Whats, Whys and Hows of Annuitization for Retirement Management
14:39

You will understand the concept of income flooring and IRR, and how to apply these 2 concepts for a sustainable retirement.

Understanding Income Flooring & IRR
18:11

With everything thus far combined, we have the Retirement Scenarios Modelling system.

Conventional retirement model often has this downfall - you get big variations in the amount of savings required to retire by changing the assumptions you put into the model. The fault is not the model itself, but the assumptions, which is static for many years in question.

But it don't have to. You can adjust your assumptions on-the-fly, throughout your retirement years, each year independently.

In this lecture, this video will explain what each and every of the column is about the Retire Method model, and how to go about keying in the required input for subsequent tutorials.

How to construct your own Retirement Scenarios Modelling System
08:51

Here I will walk you through how to use the Google sheet effectively.

A tool is just a tool, but you need to know how to use it.

Pre-requisite - you must have quantified the anticipated financial needs to achieve financial survival, security and freedom (at least!) before attempting to work on the Retirement Scenarios Modelling Analysis sheet.

If you need explanation, please ask and I could address your questions via Skype calls.

Preview 08:25

It is extremely important your retirement portfolio has this one important factor.

Having this factor means a $ 950k capital can outlast a $ 1.5 mil capital.

I am going to show you how.

Case study: How a 6% CAGR $ 950k Outlast a 3% CAGR $1.5 million for 25 years
00:36
About the Instructor
Ching Foo Lieu
4.0 Average rating
24 Reviews
225 Students
2 Courses
Certified Financial Planner, CFP

CF is an investor and a CERTIFIED FINANCIAL PLANNER™. He also runs high-acclaimed personal finance blog featured at Alltop personal finance since 2011.

CF practices an improved version of value investing by taking into account global macroeconomics and business cycle. This stems from his practical value investing experience during the 2008-2009 financial crisis 

An engineer by training, CF graduated Magna Cum Laude in Computer Engineering from Multimedia University.