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These are great things to consider. My wife and I saved like crazy before we had kids and while they were young. When our oldest turned 12 we realized we probably had enough saved for retirement and shifted our focus to spending on experiences with our family. I was able to retire 7 years later at 54 years old. Sure I could have had more money for an even more epic retirement, but we already have a ton of awesome memories of experiences with our kids that I wouldn't trade for more money.

These are great things to think about. My wife and I saved like crazy before we had kids and while they were young. When our oldest turned 12 we realized that we had probably saved enough for retirement and backed off on the saving and started spending on experiences now that the kids were old enough to really appreciate and remember them. I was able to retire 6 years later at 54 years old with no problem and we have some wonderful memories with our kids already.

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

House should not be included in the 2.7m sum - the income generating part of their portfolio is only 1.4m thereabouts.

Most people here commenting that 3 mil is not top 1% do not even have 250k dollars savings 😂😂😂😂 the haters just hate

I have about 3 mil portfolio but im going to quit my day job soon. I will get an easier job but it is a very low salary 50k job.

Unless you are buying / Financing real estate, artwork or traveling sleeper class to Europe every month 15K seems a bit too much.

If you start with $40 Billion, you’ll be fine with 100% stocks, even in 1929. Buffet also said 10% in short-term government bonds. For Buffett, that’s $4 Billion. For the rest of us, you’d be fine if you had 3-5 years of expenses in safe investments like t-bills or cash and the rest in S&P 500. Refill the cash portion in years when the s&p 500 is up. For people of modest means, 5 years of expenses is probably 30-40% of your portfolio. Are there more advantageous allocations? Yes, but it’s not absolutely required to have an optimal allocation.

Anyone with any amount can retire at anytime. The right question should be what is the quality of life with 3 million if retires at 50 years old.

yes

The main problem with this plan is the the value of their home. I'm expecting the home market to crash 400% over the next 10yrs.

You need 8 mil in savings to retire today as a couple. Anything less and you live past your 80s you're dead broke and working at walmart.

I feel like most people could fully retire with 2.6M - over $100k in income annually SWR. So a less wealthy example would be helpful - say $1M net worth but some of it tied up in home equity

take ur SS at 62 !!! not 67…. u years in retirment at age 62-67 will be ur best… take it at 62….. easy answer… at the break point even at age 80… u cannot enjoy it….

How is this different than a Roth? No contribution limits?

Thank you for this video. What software do you use?

Well I have a great federal pension( with cola), no debt, won’t take SS until fra, don’t need millions

The $700 mortgage on a house valued at $900k is not realistic even if the value doubled recently . More like $2000 a month with insurance and property taxes.

yes. plan, prep

whats your projection on growth on the portfolio , where is it invested?

Matt, I’m 53 with $1.6 million in 401K/B and $340K in Roth IRA. I’m probably going to use rule of 55 next year. $6K/month should cover expenses until 67. Considering a flexible withdrawal plan how do you advise retirees to pull money out? Monthly? Bimonthly?Yearly?

I am curious how much an analysis and plan like this cost to have you setup and would that include the specific invest guidance?

Pushing Roth based on tax savings is deceiving. You can pay more on taxes and still come out ahead. Items ignored 1. Taxes paid when converting are all paid up front at your highest tax bracket with today’s dollars. Taxes paid when deferred are paid slowly over many years at a blended tax rate lower than your tax bracket with future inflation adjusted dollars. 2. State taxes. Will you potentially move to Florida or another tax free state in retirement? 3. Both standard deduction and tax brackets are adjusted for inflation which means your income in the future would need to be much higher to be in the same tax bracket.

I am glad you mentioned the implications of increasing your taxable income with regards to your health care subsidy most planners only mention the tax implications involved. My subsidy is almost 2K per month and it goes down fast if my taxable income goes up. There are a lot of moving parts to consider. Thanks for the video Matt.

Just FYI, your side view edits are really annoying and not flattering. You’d be better off going from less close to close up in front if you feel the need to alter the view. Best practice is to always face the viewer. Hope this is helpful.

Matt, you made some really good points. I have had two advisors that basically use a static plan and of course they would have failed.

Hi Matt, What would be the retirement amount needed if your monthly income wanted is 8.5k? Want to.retire at 53 and currently 50. Have 1 million in traditional 401k and 350k in brokerage account. SS at 67 will be 3400 but want to start taking at 62. What is the retirement amount needed under your realistic factors?

I am just looking for 7k or 7.5k/mo. I am also in Cali but if I retire my wife and I will leave this State so fast you will swear that the Flash is real. Will never return to this banana republic.

Excellent work Matt.

At the age of 55, there's a good chance that the couple will be on ACA until they both reach 65. Won't that skew the analysis away from Roth conversions (or at least counsel against going up to the 22% bracket on them) since the premium tax credits on ACA would basically act as a tax? In my view that is a significant omission that many financial planning videos seem to commit a lot.

For once just once I wish all you CFAs would take your 1-2% fees under AUM into these calculations. Seems like everyone avoids the elephant in the room!!

Please remember that SS takes the highest earning 35 years. If one retires at 55, there could be several zero in that 35 years. With that said, it will be very difficult to get $4000 a month SS if they retire at 55.

The main reason that Income Lab shows better results in the papers vs Guyton-Klinger is that Income Lab includes "economic context" when setting the guardrails. You can see this in the stagflation era chart where Income Lab is *increasing* the withdrawal rate in 1986 to over 10% in anticipation of the outstanding market returns of the late 80's and 90's. It's up to you to decide if such economic forecasting is a reasonable approach. (It works for historical back-testing, but going forward, who knows?) If you turn off "economic context", you get similar results between Guyton-Klinger and Income Lab. The key benefits of Income Lab over Guyton-Klinger are that it can handle changes in income sources over time and it also recognizes that the withdrawal rate can rise as remaining years of life expectancy decrease.

It would be good to have a video that goes into the risk based guardrail math

Robert…always wrong never in doubt

Why does your static withdrawal rate scenario not match the original paper results? The paper said 4% passed all scenarios for 30 years. It looks like you used 60/40 stock/bond split versus the 50/50 split in the paper. Is that the difference?

Our facts are VERY similar, this reinforced some of my ideas.

Part time job… that is A big no beuno. What software do you use for the guardrails? Nice stuff!

$3M portfolio owners aren’t watching RUclips.

Great Video!

Everyone on RUclips talks about making money off the interest. I am very happy with dying without the entire nest egg at the original principal amount. I’ll leave my son with a house and whatever is left. He’s not going to be a spoiled trust fund baby. Can you show us what will happen to the $3 million if you can eat away at the principal? What’s left if you need $15k per month taking inflation and other situations that may cause a deficit each month?

I’m a dividend investor, My wife and I have invested in the S&P500, both through my TSP with the government, and through fidelity in her 401-k. Cashed out 270k from the S&P and invested with a Financial adviser, Monica Mary Strigle and we also bought Solana at the right time. Until around 3 years ago we were 100% in the s&p after over 30 years. I’m retiring at the end of this month at 52, while my wife will retire next year at 50. We currently have 3.7 million in our tax deferred savings. I am putting this out there for anyone looking for how to help themselves in this time of crisis.

2:01 Who is Sarah and what happened to Jessica?

Seems this sample would benefit from Roth conversions to fill tax buckets before IRMA risk kicks in.

Know your enough amount or be cursed chasing more..

That's my exact number right now. I'm single, 51, no kids, no debt. Wondering what you would use for a safe withdrawl percentage. I'd like to die with zero and spend as much as I can early in retirement. I've got 4k per month coming to me for SS at 67.

This would be a lot better to down the next click or two, as this is just a very high level overview which teases some very complex topics. Maybe make this a three or four part series and get into specifics of this couple. Such as when Roth coversions should start and when it should stop (I assume that 100% may not be optimal, depending on other income and tax brackets). Implications of Medicare costs (income penalties). What is the optimal mix of the three buckets at different ages (just as spending changes over time, asset allocations should change along with how much in each buket). Or how would the recommendations change for a single person vs a married couple. One topic that should be discussed more is how to plan to "Die With Zero"... people worked hard for retirement, and dying with a huge pot of money doesn't do them any good.

🥴🥴🥴nah

If they have 3 million....they should be able to spend 150k to 200k pretty easily.

Don't be holding the bag like Poloroid or GM employees