compound interest

Words and Money: How Much You Need to Retire and Why to Invest ASAP with Amy Hubble

The Words and Money Podcast: How Much You Need to Retire and Why to Invest ASAP with Amy Hubble.

W+M 043: An Interview with Amy Hubble

Amy Hubble is the Founder and Principal Advisor at Radix Financial, a fee-only fiduciary portfolio management firm located in Oklahoma City, OK but servicing the entire United States. In this episode we cover so much, from what you miss out on if you don't take advantage of investing in your 20s (comparing an example of Taylor Swift and Adele), to how much you will need in retirement, to prioritizing paying off student loan debt and investing in your future. It's a jam-packed episode with really solid advice from Amy.

Listen to the show:

What we talk about:

  • Amy shares her money "doh" moment about her joint-credit card with a high school boyfriend.
  • How Amy helps her clients decide on their spending and saving priorities.
  • Figuring out how to prioritize paying off student loan debt and investing in retirement.
  • Amy's advice on paying off student loans and not sacrificing saving for your future to get out of student loan debt.
  • Why investing in a Roth IRA is a good choice in the early stages of your career.
A fictional story of two celebrities and their investment strategies. Who comes out on top? Learn why it doesn't pay to hold off on investing in your 20s. Live on the podcast.

Takeaway: The Power of Investing Earlier Instead of Later

  • The Taylor Swift and Adele Comparison: (See infographic)
    • Taylor saves for 10 years but from the age of 25 to 35.
    • Adele saves for 30 years but delays until the ages 35 to 65.
    • With an average return on investment of 9% each year, who ends up with more on their 65th birthday? (Spoiler: It's not Adele)
  • How important the very first years of compound interest are.
  • Compound interest is like baby rabbits.
  • How much do you need to be able to retire?
    • In retirement you want to supplement about 85% of your income by the time you retire.
    • How much do you think you will be making around retirement?
    • What is 85% of that and how long do you think you will live?
    • How much do you need to save to get to a goal amount that equals the number of years you plan to live after retirement multiplied by 85% of your income pre-retirement?
  • Although $700,000 seems like a lot of money today, it won't stretch that far in retirement with inflation and the cost of living.
Prioritizing student loans and retirement savings is a difficult choice to make. Hear how Amy Hubble, Chief Advisor at Radix Financial, would talk you through the process. Now on the Words and Money Podcast
Figure out how much you need to save for retirement. Check out my interview with Amy Hubble of Radix Financial.

Contact Amy: and Twitter (@OklaHubble)