I plan to retire or reduce my work hours in five years, and I'm interested in learning how people typically divide their income between savings, spending, and investments. I currently earn around $175K annually, but I haven't built up much in terms of savings yet.
There are numerous strategies to achieve high yields during a financial crisis, but it is crucial to undertake such trades with the guidance and supervision of a professional financial advisor to ensure informed decision-making and risk management.
The continuously changing economic conditions in our society have made it necessary for thousands of people to find additional sources of income. Personally, I am looking at the stock market to fuel my retirement goal of $2m, my concern is the recent market crash.
buying the dip has proven to be profitable although for majority, the solution to their problem can be found only in specialized knowledge hence they seek guidance from well experienced advisors
Agreed, despite my rookie knowledge of investing, I have a financial advisor who did the trick in a bit more than 6 months after a lump sum capital of $500k, and I've so far made a fortune. I'm now buying real estates, gold and silver as advised by my FA.
truly appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Vivian Jean Wilhelm is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
You are completely right, Advisors have information and paths that are not disclosed to the public.. I profited £560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.
“Jessica Lee Horst”, is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is why I've entrusted a fiduciary with my investment decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to $780k, generating sufficient dividends for my household's needs.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
So far I'm doing good, approaching retirement with about 800k in savings. Transitioning from building wealth to spending can be scary, especially with soaring inflation. My question is, after maxing out my tax-advantaged retirement accounts, what next?
in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial advisor
Agreed, the role of advisors an only be overlooked but not denied. I was shocked that I made more money with investing than hard work, not even my CEO income. Earning ''return on investment'' fetched me millions within a space of 5 yrs.(But I still enjoy working)
sounds great! i've never utilized a financial advisor but enthused about making money from the stock market, could you be kind enough with info of the advisor guiding you please? I could really use some guidance
Thanks for the info. I searched for her full name and found her website right away. I reviewed her credentials and did my research before reaching out to her.
I was one of those people who, after being laid off, immediately thought I had to find another job because I focused on age vs. savings. So glad my husband helped me connect the dots. Retiring at 55 has been the best decision I've ever made.
@Bluelu69 my husband I still employed so I am on his insurance until he retires next year. We will be on Cobra for 4 months, then will move to an ACA plan in 2026, when our income is lower.
@@cr8685 You should have built a liquid cash bridge account to span those years. Our bridge is halfway complete and will allow for 6 years of all-expenses paid living, even without social security. But that is not our goal. It is our backstop to use only if markets tank, so we don't touch principals.
This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
it's true, Azul. millions of Americans living quite happily in retirement on way less than $1M. it's about expenses and cashflows. good discussion points!
Ive never netted more than 43k my whole life until 2016 and then i netted 58 to 60 till 2020 when the plandemic came. Ive saved 650k and own my home. Zero debt. This video makes me feel good as I want to retire at 62. Lived below my means my entire life. Still had fun and I do have some nice hobbies but always paid cash for things
After seeing several family members retire the biggest key is no debt. A few of them didn't get to choose when to stop working. A few were still fine on SS only because they had very low expenses because of no debt. A couple struggled even with a lot of money coming in just because they had car payments and mortgages.
You'll be fine because you've always done what I refer to as the magic/golden rule of finance: you always lived below your means. I retired more than seven years ago on less than 120K in retirement savings with no debt, mortgage or otherwise. I am not struggling, and am enjoying life. Believe it or not, although I've been drawing the customary 4% off my Roth IRA for seven years, it's balance is more now than it was when I retired.
You’ll be fine. If you can earn 5-7% on your retirement you’ll make ~30k. You’ll also get 24k in soc security If you can’t live on ~54k annually with your house paid off, you have a spending problem 😂
Hi, I’m retiring in two years and I’m curious how others split their income into savings, spending, and investments. I make around $150,000 a year but haven’t saved much. Can you share some advice?
That’s right. I’m a wife, mother of four, and new grandmother. After 28 years in Corporate America, I recently retired at 54. Since the pandemic in early 2020, I’ve been investing and grew my $250,000 savings to nearly $1 million, thanks to my investment advisor.
Most Americans will never have anywhere close to $1M saved for retirement. You have to get creative with living expenses. I retired 2 weeks ago at age 62. My wife and I are selling our house and retiring on our boat. We love our boat. We love traveling on it. The views from our boat rival those of multi million dollar homes. Our moorage fee includes water, electricity and WiFi. Between social security and my 401K we are going to be just fine. When we get too old for boat life, we will come up with end of life plans which may include leaving the country for lower cost alternatives. The bottom line is I would never trade my life for spending one more second in a job that was sucking my soul to death. We are very excited for this next chapter!
@@bublysoda we’re currently at $490 per month. Once we get the house sold, we’re selling the current boat and moving up to a Hatteras 53. That will put us at $630 per month. Still cheaper than a mortgage, property tax, homeowners insurance, roofs, etc, etc. We wouldn’t trade the water life for anything.
@@philipmayo4865 Hey Philip! While I dearly love to sail, my wife does not. You know the saying - happy wife, happy life. Therefore we have gone the Motor Yacht route. I am certified in sailing through American Sailing Association. I have done certifications through ASA 104 and have an International Proficiency Certification. We currently own a President Yachts 36 Sundeck which we love, but she’s not quite large enough for what would be comfortable for a liveaboard, which is why we’re on the hunt for a Hatteras 53. Our cruising will consist of Florida (where we currently live), Florida Keys, Bahamas and Turks and Caicos, and the Caribbean. We want to take our time and spend a while at every stop. Soak in local culture and reduce fuel costs by staying put a while. If sailing is your dream, I highly recommend taking the ASA courses WITH your wife. You want to make sure both of you are up for the sailing lifestyle. I can’t tell you how many friends I have that their wives flew back from Timbuktu because they didn’t want to deal with another uncomfortable passage. It wouldn’t hurt to take a week long charter and get a real taste of it. While I do miss sailing, I’m not gonna lie. I am VERY comfy on my Motor Yachts. I scratch my sailing itch with my O’Day Wigeon sailing dinghy. Small boat sailing is a blast and so so easy. Anyway, good luck to you! Live your dreams. We only get one shot at this! 😎⛴️⛵️🏝️
@@philipmayo4865 Hi Philip! While I do dearly love to sail, unfortunately my wife does not. Therefore we went the motor yacht route so we both can be comfortable. The old saying “happy wife, happy life” definitely holds true. I took my sailing courses through the American Sailing Association. I have an ASA 104 and International Proficiency certification. We currently have a twin engine Presidential Yachts 36 Sundeck which we love, but not quite big enough to be a permanent liveaboard. Once we sell the house, we will be on the hunt for a Hatteras 53. We love that design and it’s roomy and comfortable. I would take the ASA courses WITH your wife. It’s important you both are comfortable with sailing. I can’t tell you how many times sailing friends and acquaintances have told me a wife flew back from Timbuktu because she didn’t want to go through another rough passage. A word to the wise! I still love to sail. I have an O’Day Wigeon sailing dinghy that scratches my sailing itch. I absolutely love sailing small boats. Anyway, enjoy the journey! You will love it!
@@johnbruenn8755 thank you, John for the advice! I will have to look into the ASA. Do you have a Captain's License? What does the ASA 104 and International Proficiency certification allow you to do, exactly? May I ask where you and your wife plan to live aboard? Are you on the west or east coast - north or south? We're about an hour west of Philly, PA. I ask because after I retire here I've been considering moving further south where it's warmer but not sure I'd want to go as far as Florida. I here the further south you go the boat slips get more and more expensive. Not sure if that's true though. We both love the Outer Banks in NC so I've considered there as an option. By the way, John, I looked up the Hatteras 53 boat you and your wife like and it is beautiful! I found a few for sail online. I would love to live aboard like you and your wife plan to do! I'm thinking I need to wait a few more years to let my IRA build up a bit more and then gotta figure out the whole social security thing. Seems a bit tricky to figure out at what age to start taking it but I'd like to get on with my life after working so hard for so many years. Thank again for your kind message and advice about the sailing certification and I wish you and your wife the very best and hope you can sell your house and find your perfect boat! Hope we can meet some day. Take care and God bless!
The amount you need for a comfortable retirement is directly correlated to what you need to spend to be comfortable. It's that simple. There are people who are happy and content and they spend $30,000 a year. This is because the live within their means and they don't buy things that are not needed. For others, trying to live a life that is this frugal is almost impossible. Just take vacations as an example. Couple one loads up in the car and goes to a National Park for a week, they bring their own food in a cooler, and they sleep in a tent. That vacation can be really rewarding, but costs very little. Couple two flies Business Class to Amsterdam , stays in a 5 star hotel for a couple of nights, then takes a River cruise down the Rhine to Basel, Switzerland, then stays another couple of days in a 5 Star hotel. This can also be a really rewarding vacation, but costs quite a large amount of money. If a couple is happy with vacation one, they don't need nearly as much money as a couple who really needs vacation 2 to be happy and feel comfortable. When you are thinking about retirement, money is not the first thought you should have. Concentrate on what you need to have in retirement, what is good to have in retirement and what your wish you could have in retirement. Once you know the range of what you need, then, and only then, can you really be in a position to know how much you need to save.
I live in the rural Midwest, house is paid off, real estate taxes were $700 last year. I've been spending less then $1000 a month on expenses. I'll be retiring next year with about $200k. I think I'll be fine until SS kicks in.
I got laid off after 29 years in an electric utility in the end of 2009. I had to short sale my home and asked for a divorce. Lost my minimal pension to my ex and took all the debt. I retired at 65.5 and am now retired living large on SS and my 401 for the last 14 years. I stocked it up for these years and I take home the same $ that I was getting while working a $135k job 🙌🏻, btw I do NOT have a million dollars and am doing AWESOME
@@slocumb1270 no problem. I am living and traveling believe it or not 😛. Get a feduciary financial planner. I am ytd 11.79 return and taking 5% in income minus 15% tax deduction
Me too! Retired 4+ yrs ago. Have way less retirement funds than $1 million. Living the best life ever in retirement because of a few things. I am 76 and still have great health, I feel so lucky for this more than because of finances. When retired I had no debt either mortgage, car loan or credit cards. Because of this my retirement funds have actually increased since the day I retired. I live very comfortably on my Social Security monthly checks. I live a simple life but I have always lived this life so it is very normal to me.
I am 54 with a net worth of about 500k. But I am not sure a lot of money is necessary at all. I would like to work part time in my retirement. It would be cool to be a millionaire, but I don’t think it is necessary
I've been out of retirement for five years now. The 4% rule is something I've been following after seeing it on a RUclips channel, but I didn't anticipate it to be this difficult. I have roughly $800k left over after cashing out a lump sum, but at this rate and with the state of the market (we were investing in an index fund), I'm beginning to worry a lot.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
'Annette Christine Conte, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I don’t know?!? Apply the 4% rule that financial advisors recommend (or own stocks that collectively pay a 4% dividend) and you get $40K/year from your saved million dollars. Add social security at $24K /yr single or $48K/yr married, can someone retire living off $64K/yr (single) or $88K/yr married? Some may be able to do it while some may not. There’s a lot of cost variables to consider.
Hi Azul. You are giving financial advice. You aren't soliciting business or telling us where to invest our money. But, you have said to invest. And I listened to you and continued to invest and thank goodness. I think your videos and advice opens our eyes. Thank you so much for all that you share. I've never heard anyone complain that they have too much money invested unless god forbid they are about to die and never enjoyed any of it. Save, invest and retire and live a healthy life. That's my take from your videos. You are the best!
i was laid off at 55 in early 2019 and never worked again. I've been pretty frugal and saved well and have a decent portfolio and no mortgage or car payment and from what the numbers and Fidelity tells me I should be fine. Still I look at RMDs and IRMAA (single tax brackets stink! LOL) and how everything feels expensive now and when I'm Medicare age that will feel even more expensive. I don't know. Thailand is sounding better and better...
So many financial decisions are driven by pain or fear. Pain often drives short-term consumerism and indebtedness. Fear drives obsession with investing and building wealth for a rainy day. When we can genuinely experience a peaceful attitude and some gratitude in the moment, I’d suggest we’re much less likely to make problems for ourselves with over-spending and way more likely to set up some simple investment habits that will pay dividends in the long run.
I just turned 60 with $900,000 in my TSP. I also have a pension and will draw SS at 63 when i plan to retire. Im debt free except my home i owe $30,000 on at 3.5%. ill pay it off at 63 . Im maxing out my TSP and Roth IRA Each yr now including catch up. I might keep working till 67 because my job is so easy, little stress. I take off whenever i like at this point.
I don’t think retirement should be the goal anymore. At 51 I’m learning to use the skills I enjoy using to build new income streams. I’ll be able to easily use these skills to earn money until I’m 75. It’s a great feeling because if you’re doing what you enjoy you think and worry less about retirement.😊
sell everything, buy a tiny house .. If you keep your house, sell it and buy a 1,200 sq-ft house, put a new roof on it, new septic or sewer line, replace the gas and water supply line, have the wiring and all inside plumbing brought up to code including the water heater, pay cash for 2 nearly new modest vehicles and then live on the most basic monthly living possible. buy a 1,200 sq-ft house with room for a big garden in the back.. you do not need $1-M to retire, but do make sure you can live on your income alone if your wife/husband dies suddenly or just wants to leave you.
Whew! I just passed $1 million last week. Nice to have, for sure, but even nicer to know that it's not an absolute requirement for a comfortable retirement. So many of these say you have to have $1 million or else you'll be eating Alpo.
An important point to make about the WSJ article is that it's talking about people who are already retired: Silent Generation and older Baby Boomers. These are people who are more likely to have a pension and to own a paid-off home. So this means that they don't need to rely only on Social Security and retirement savings. Younger Baby Boomers, Gen X, Millennials, etc will need to lean much more heavily on retirement savings. They won't be able to get by just fine with meager savings because they'll have to rely on their savings so much more than older generations did.
There are articles about Gen X talking to how we are the least prepared of all the generations when it comes to retirement savings. The whole situation is sad.
I am 60 and the youngest child n my family. I know precisely ZERO people who are retired and have a million. They are all doing fine. The whole million plus to retire comfortably is an absolute myth / scare tactic designed to get you to let them profit off your money for as long as possible.
Yes, I’m a boomer. I retired with approximately 100K net worth. I bought a house 5 years ago. I only have one friend who lives in a “paid off” house. It’s NOT easy but it most assuredly is NOT impossible.
@@karenbenning2166 True, but moving also costs (our last move was $13k). And, often people live near family or other reasons to stay. I agree for some it is a viable aid. Some of our family has moved to low cost areas like Kentucky to make retirement easier, but are then all alone.
I believe the reason why the majority of the people in the lower end earnings category were "OK" with their financial well being is because these are the folks who are living within their means. Because of their income level, they have the discipline to make things work with very little room for errors. It's the folks that make more than survival levels who end up in trouble because they are the ones who try to live their lives in the financial brackets just above their means and at some point the chickens finally come home to roost.
This is the actual answer. It’s impossible to make an accurate generalized statement about how much someone will need because every situation is different.
I love listening to this. At 54, this year, I retired with a pension and some savings. My question is this, WILL social security be able to pay me (I am fully vested) when I hit 62, much less at 70)? That is one piece weighing over me. Or will the fund be drained?
I could retire very comfortably if it weren’t for my $20k a year in property taxes. I built our house with cash and my wife never wants to move so I’m 70 and still working. She also loves shopping and exotic vacations so I may never retire.
It's always the same principle. Just spend less than you earn. You want to invest more? Cut all your expenses. You want to retire now? Cut all your expenses. It doesn't matter what is your situation. You can't put your money at two places at the same time.
While many CAN retire on less than $1M, the more you have, the better. We're not talking about just enjoying a nicer retirement lifestyle, although of course that is welcome. We're talking about all the potential shocks that can and WILL happen in a retirement period that may last 20-30+ years. Failing health and the need for pricey end of life healthcare is number one, but also expensive home repairs, runaway inflation due to a global pandemic and supply chain shortages, and the growing costs of climate change disasters (insurance, etc.). Just the last four years alone has shown us what can happen, and will absolutely happen again and again. Take comfort you don't need stratospheric numbers, but don't let off the gas pedal trying to build up as big a nest egg as you can.
There in no one "magic number." You can drastically reduce how much money you need in retirement by living in a low-cost area, delaying retirement, working part-time in retirement, getting help from family or having a roommate or boarder. Most people find ways to get by with modest savings. If you want to retire early, stay in your large house and travel and have luxuries, then yes you need a big number saved up.
What wasn't discussed is where the retired person lives. If they live in a low cost state like Omaha, North Dakoda, Tennessee, Mississippi, etc. you could live on $50K a year. But if you live in NY, CA, MA, etc. you will need much more.
All depends on where you stand financially at that point in time. If you home is paid for and debt free, you carry no other debt, then in higher income states like MA, CA or NY may be stretching it to survive on $50k, but it is certainly possible. Ultimately however, people should theoretically have made more money in the higher income states, and therefore saved more than average. As they also had higher salaries, their SS income would be higher. The max benefit at 67 is $4000 a month, so in higher income states, a couple could be getting $8000 a month, or $96k a year from Social Security alone.
Ongoing OPEX tied to "life" requires alot of money - Alot of money. Big difference between living vs. existing ... You need $60k per year minimum to exist...
0:50: When my wife and I met in 2007 we were both in debt and working hourly jobs. Now we are $70K away from being in the 4% of Americans with $500K saved. That is crazy! But then again, so are we when it comes to aggressively saving as much as possible all that time. Well, once our debt was paid off around 2017. There is NO REASON why Americans should not be able to do this. The ones that don't have CHOSEN not to do it.
Right out of college (as I was starting my career) I read "The Wealthy Barber" by David Chilton. That book changed my life. I'm now 55 years old with a plan to retire at 58.
Best $20 you ever spent. Probably $10 back then. It is amazing the power of a good book. Congrats on being so close to being able to retire. Well done! 🚀 Azul
My parents retired with 600k. If you're married, debt-free, and simple, 2x SS pays the daily bills. Investments are for the big sinking costs. The problem comes, and it really is a serious problem, when one spouse dies. I've observed many do not think about that when using SS as the main source of income. You really should have at least a mil invested. 1.5 doesn't sound unreasonable to me.
There are strategies that address part of this issue for when a spouse dies. Everybody should do their own checking, but often, the lesser earner takes their social security at 62 (if they need that income to live on), and the higher earner waits until 65 or 70 for the bigger check. When a spouse dies, the surviving spouse retains the bigger check and loses the smaller one. That’s our plan. And for those in greater need, look into a reverse mortgage.
Yes, my parents have this worked out as well- however, even if my dad dies first, my mothers income will be cut to a level that isn't sustainable. Without the 600k, it would be an untenable plan. Concerning the mortgage- my parents would never finance retirement- their nature is simply too conservative. They would sell first.
@@jaygold4467 About 1 out of 10 actually does- that's a pretty high percentage. A few hundred bucks a month into any decent index fund starting in your mid 20's easily gets you there. That's not unattainable or unreasonable, and most anyone can do it.
Notice it talks about couples. Once a spouse dies that's when the hardship can start. I do credit counseling so my advice is to pay off credit card debt before retirement, pay down or off your mortgage, so avoid refinancing and avoid buying car. In fact consider not having a car at all once you stop working unless you have an extremely active schedule.
all of those researches have limited value because one that saved only 100K may have 2 rental paid off properties, pension, and ss. In addition no mortgage, etc. Of course s/he will do much better than OK in comparison with one who saved 1 mil and has only small SS and need to pay mortgage, car loan etc. Everyone situation is totally different and amount saved plays only limited role.
Yeah, I have some rentals and I'm too nice to the tenants. I probably could sell the properties and put the proceeds in US Treasuries, and earn the same with no repair calls. But I just view the rentals as passive equity, emergency money if I need to ever sell. Sort of like holding precious metals. The tenants have been good people, they take care of the rentals and get along with the neighbors. It's a no-drama investment for me.
The ongoing discussion about retirement assets completely ignores the other important factor of income. It's quite possible to live with little to no assets but still have a sustainable lifestyle within the limits of pension and SS.
Not everyone gets social security. I’ve got a government job the takes what would be the SS money and puts it in a self managed account. So I’ve got to be extra sure I have the $1M+ because there is no cost of living adjusted SS in my future to fall back on.
Not sure what the magic number is but I would cry if I only had 100k at retirement. Putting at least $100 a month at beginning of career in a retirement fund adds up.
Bah, don't cry. All we had was a paid off home and a small pension. SS and my job ( got bored sitting home) give us plenty. I put half my check in the bank and give the rest away. Our secret was waiting to collect and avoiding debt.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Lourd-Bab However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@zoomzoom3950 i do far better than exist on the kind of income a 1 million dollar portfolio produces, and i live in New York. Having low overhead and a small, low effort income stream would be enough for me to retire on that kind of nest egg. Just because you can’t imagine living well with that kind of nest egg, doesn’t mean others can’t.
When they say a certain population has less than X, is this only in 401k or can they match Roth IRA, HSA, etc. to the same person? Also, do they know if these folks have a pension from work? Are they homemakers who rely on their spouse's savings? And what age are these folks when the snapshot is taken?
How many of those people with less than $100k in savings who now say they're living comfortably worked until they were 65 or later, plus how many of them also had a pension? Savings becomes far less critical if you have 40-70% of your salary coming in on top of social security for the rest of your life. That $50K-$100K in savings becomes just an emergency fund to augment your guaranteed pension and social security income. So talking about how much "savings" you need to retire is extremely subjective depending on your situation.
Your video is well crafted. We are in out late 50s now. Back in out mid to late 20s my husband (then boyfriend) suggested that we save for retirement. I was astounded that he would say that. We did it anyway and while we have lost a great deal of money throughout the decades out portfolio is around a million. Why do I think we won't have enough? We live in high tax California! I require eye specialists. The weather here is temperate and most people stay for the weather. We will draw on social security when my husband is 62. I will delay mine until about 70. I want to stay in my home when I am really old so we have to plan for in-home care as well.
It really depends on the age you wish to retire, your annual expenses and when you plan to take Social Security. If you are in your young 50s, have expenses of $70k+ a year and not taking SS until late 60s or 70yr you will need at least a million.
I’ve had a bit of experience in financial services in the early years of my career. Hopefully it goes without saying that Advisors are sales people who have a personal financial interest in making a case for customers to invest with them. This doesn’t make an Advisor untrustworthy but it does mean that some of the high-level maxims like, “you need $1 million to retire” could also be stated as “boy would all the advisors out there be sitting pretty if everyone was trying to safe $1 million by age 65 or sooner!” The key for individuals is to dig into their particular circumstances and goals. The stats you share (nearly 50% of Americans have nothing saved) suggests that millions have already retired with little or nothing saved and I suspect that’s working okay for at least some percentage of those people.
Particular circumstance and goals? We are simply talking about basics: Food, Rent, Utilities and Medical bills. These arguments are subjective opinions. Please write a spreadsheet. Clearly, you don't know how much you spend in a year.
There's a youtuber I watch that is retiring on social security. He and his wife have some investments but they're trying hard to leave that untouched for now. And they're doing ok. They have to watch the budget certainly and they can't fly to Europe for a two week vacation whenever they feel like it. So what?
Would you tell us who this is? I'd be interested in watching some of their videos. I plan to do something similar. I'm turning 55 early next year and will have a 27 year pension worth $3k per month (which includes a partially subsidized health plan through the company.) My wife took SS at 60 (survivor benefit) of $2400 per month. Together, we have 1.2m in savings between my 401k/IRA, etc. We're hoping with $5400 per month we won't need to touch our savings for a while. No mortgage but still have one car payment.
Until the house needs major repairs or the car needs to be replaced. Don't plan on doing too much other than staying home and watching Netflix on that amount either.
Azul, I love the videos and have learned a lot as well as have had a lot of confirmation on my planning which really eases my mind. I’d like to see more about when you do retire, how to make your money go further. I live in the shadow of Philadelphia and have been able to do well. But when I retire I plan to move to a place that has a much lower cost of living and better tax implications.. both retirement taxation as well as property tax wise. If you could talk to that I think it would be well received.
I have over 2.5MM for retirement savings -- I do not know if it will last the rest of my life. I want to leave a legacy to my three kids. Should work - but to what extent? Life is good for now - but I would like to contribute more to the charities I respect!
It depends! I am 61 and been retired for 2 yrs! I am retired Army Vet with 100% VA rating, and forced in SSDI!!!!! I live in southern rural Illinois, no property taxes!!!! Wife is 64 and gets only SSA! We make over a 100,000 grand a year and live very comfortably!!!!! We brought our retirement home when retired!!!
I'm focusing on 1 Mill because if I leave the workforce early, I will have to pay for my healthcare out of pocket. Help me understand if I'm wrong, but what if I get cancer later? Extensive dental care? I will have to pay for all of that.
What about looking at their total assets? Do they have private or government sector pensions ? Are these people selling their homes and down sizing and living off the difference? These studies are not helpful unless total assets including pensions are counted.
Thank you for this video Azul. Realistically most people don't have a million. I think information on how to retire with less than a million would be very beneficial. I think frugality , debt free living and gratefulness are a huge factor in successful retirement. Travel and dining out is not a necessity and maybe only for those that have more saved.
Many say you need 80% of your pre retirement income once you stop working . I contend you need 100% or more because what do you do when not working; you spend money. Unless you plant yourself in your house, like a houseplant.
Retiring early, would like to hear what some are doing for health care. Or even long-term health care. Are they cashing out life insurance to pay for it?
Eveything depends on where you live, what your health is like, your lifestyle etc. I know I'll need way more than $1 million to retire "comfortably". Social security will likely be cut back significantly, I live in a expensive area and I dont want to just scrape by.
Ill have a small pension of around 1.5k then if i get 1.5k in ss and another 2k a month from investments and i have my major bills paid off i can live comfortably with 5k a month.
My main concern at this time is not being a homeowner and not owning a home by the time I retire. I don't want to be depending on rentals when I get to the point of retirement.
I’m a homeowner and we are planning to rent for the rest of our retired lives (US and abroad ala slow travel). So done with home improvements, fix-ups, mowing the lawn, etc. 😅
What steps are you taking to address your concern? I ask this because it wasn't until my employer cut my hours and salary when I was 49 that I really took a deep dive into my financial situation. I just had a nebulous "I know I'm not really doing well" kind of feeling before that. Armed with the numbers, i addressed my issues and made steady progress. Do you have your plan? Arm yourself with the numbers and go after it. You can do it. (BTW, I'm a lifelong renter and LOVE it, but I get that there are concerns about rising rents.)
@@dgs8011 my wife and make a little over 200k annually have, 401k , IRA, and some CD's but we're also paying for our son's housing and living expenses while he goes to university two more years. We're probably 14 to 18 years away from retirement depending on how we feel when we get to that point. Also living in southern California is expensive. The current plan is to keep saving and contributing.
So how do you exactly figure out how much is the net worth of ones retirement? Take our case: I will be retiring at the end of this year (2024) at 55 after working as an engineer for a large municipality for the last 34 years. I will have a little over $100K annually in pension with yearly COLA and 50% spousal benefit continuance. Health insurance is paid for both of us up until 65 then we have to sign up for Medicare. However, the Medicare premiums for myself will be reimbursable by my retirement system. I do have some money saved up in deferred compensation (457B) of about $927K. House is mortgage free and is currently worth $1.2M (we're on West coastal town). I am ineligible for social security since I have only worked for the government all my life. My spouse (62) just started receiving a modest social security this of $800/month this year.
I’m assuming this is for people currently retiring. For the other generations, social security will be minimal if it is even around. They won’t have this additional $40k a year safety net and will need to rely solely on their own savings.
Yep none of these arguments are presented. Inflation, medical bills, changes in government policies, etc... Not a spreadsheet and not even an interview with real life retired people.
My goodness!! Government pensions are important to consider here! With a two-pension household, say two teachers, there is the eternal paycheck arriving EVERY month, forever. They don’t need to save anything. Our $700,000 senior patio homes in our neighborhood are filled with former government employees. Not the top dogs-just teachers, engineers, etc. Many homes both husband and wife have government pensions. A high percentage of retirees entering retirement have these pensions.
I wonder what health care costs be like as I get older and need specialized equipment and supplies to maintain my lifestyle (e.g. motor wheelchair, adult diapers, etc.)
Doing ok or living comfortably isn't saying if they're living their dream retirement or just eeking by. Just because "most Americans" haven't saved squat, doesn't mean I want to be in most Americans shoes in my retirement. I want to live, travel, buy things and not need a calculator to see if I can or can't buy what I want. I don't buy into people telling me what I do, or do not need. You aren't me, never have been me and never will be me. Nice video, but it doesn't fit my plans. 🙂By the way I'm not retired yet and I'm in the over $700k club.
I so agree with this statement. Don’t try to mimic what other people do, focus on your own situation. My goal is to have 1.5M by 65 where my wife and I can both retire. And live a life where we can travel two times a year. Other people can do with less, and that’s ok. In a way I’m jealous of these people sometimes because it’s stressful at times putting so much money away each pay check and having so much market volatility.
I love your videos. I've learned a lot from you! But that shirt was "the bomb". Love the shirt!!! LOL! Great taste in clothing! Thank you for all you do for us!
i had a few relatives now who passed who only rely in SS but they were comfortable based on their own lifestyle definition. a few was living w kids and took care of grandkids until they passed… others stayed just at home worked on. backyard garden, etc. Life is short, many old people regardless of nest egg just drop dead from heart attack or cancer. so yeah, there is some truth to the survey of existing retirees
I see it as I take home 52k a year plus wife's 20k. To keep our lifestyle I will need that in retirement. 1 million invested in a stock with 7% dividend will provide that. Collect 70k plus draw down the million as life gets more expensive
Is this a poll/study that was done of people who have retired, and ignores those who have not retired because they couldn't afford to? It seems it is skewed then in favor of those who can "manage" on that small amount of money perhaps due to ample pensions (i.e. Social Security) and assets (home/car) besides savings.
Frugality is the most important part of the whole thing. Live beneath your means and you will probably be absolutely fine. Learn to make good spending decisions and only spend what you need to.
We are fortunate to have both been in solid professions. My social security will be at LEAST $3K retiring early (before 64). My wife's will be $2K+ so that's $5K/month (retiring before 63) which is apparently higher than shown in this video. I turn 62 this year which is relevant. The line that "you need a large percentage of your CURRENT income" is cray-cray. It's not like we will have a mortgage nor car loans nor have to pay for kids colleges so we will only need a small fraction of what we USED to earn so even without our investment nor rental real estate, we should be able to live on $5K/month in 2026 with NO PROBLEM!
$46000 dollars is a pretty huge amount from social security (at 25x it's worth $1.15m if it was a pension). In the UK the state pension is £11,500 per person (if they have a full work record) and perhaps a few other benefits that are more difficult to enumerate on top (free bus travel, pension credit, other concessions) - that's £23,000 which is $30,000 equivalent. The fact is, retired people vote, and voters get concessions and boosts to get their votes, and that happens in the US and the UK. One big problem with the UK state pension is that you can't get it earlier in any manner (e.g., reduced payments) which is very restrictive.
It costs a lot less to live in the UK, I'm a brit living in USA, we have medical costs, full coverage for a couple in retirement $1000 a month. Then home insurance, car insurance, property taxes are a lot more here as are groceries. There are no pension credits, free busses for retirees. We need 3 to 4 times income to survive here.
@@taffyalusa4642 Yes, medical coverage is a lot over there (although the NHS over here has been trashed by the previous government), insurance has gone up a lot in the UK recently. It seems difficult to meaningfully compare retirement costs between the two nations.
I’m guessing that the Social Security benefit numbers that you are citing are the nominal amounts projected by the Social Security Administration and do not reflect reduction by the recipient’s federal tax rate and the cost of Medicare part B.
I am assuming most people in this study are over 65... Without social security and cheap medical insurance (Medicare), retirement is very tough for most people and you need much more assets saved. Most couples spend $5-7K a month. This would eat $100K in less than 2 years.
The biggest cost for Americans is housing, so if it is paid off, retirement cost would be lower. If not, retire overseas. I bought my home at 26 paid off by 38 and retired at 45 with around $1.2M saved and about $30k passive income.
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I plan to retire or reduce my work hours in five years, and I'm interested in learning how people typically divide their income between savings, spending, and investments. I currently earn around $175K annually, but I haven't built up much in terms of savings yet.
There are numerous strategies to achieve high yields during a financial crisis, but it is crucial to undertake such trades with the guidance and supervision of a professional financial advisor to ensure informed decision-making and risk management.
How can I find your financial advisor? I need all the help I can get, especially in this crisis.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
@@grego6278 Buy an ad
And here comes the clickbait
The continuously changing economic conditions in our society have made it necessary for thousands of people to find additional sources of income. Personally, I am looking at the stock market to fuel my retirement goal of $2m, my concern is the recent market crash.
buying the dip has proven to be profitable although for majority, the solution to their problem can be found only in specialized knowledge hence they seek guidance from well experienced advisors
Agreed, despite my rookie knowledge of investing, I have a financial advisor who did the trick in a bit more than 6 months after a lump sum capital of $500k, and I've so far made a fortune. I'm now buying real estates, gold and silver as advised by my FA.
truly appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Vivian Jean Wilhelm is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@@DallisonScramosin How did she quadruple your capital in 6 months?
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
You are completely right, Advisors have information and paths that are not disclosed to the public.. I profited £560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.
“Jessica Lee Horst”, is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is why I've entrusted a fiduciary with my investment decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to $780k, generating sufficient dividends for my household's needs.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
So far I'm doing good, approaching retirement with about 800k in savings. Transitioning from building wealth to spending can be scary, especially with soaring inflation. My question is, after maxing out my tax-advantaged retirement accounts, what next?
in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial advisor
Agreed, the role of advisors an only be overlooked but not denied. I was shocked that I made more money with investing than hard work, not even my CEO income. Earning ''return on investment'' fetched me millions within a space of 5 yrs.(But I still enjoy working)
sounds great! i've never utilized a financial advisor but enthused about making money from the stock market, could you be kind enough with info of the advisor guiding you please? I could really use some guidance
Monica Shawn Marti is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for the info. I searched for her full name and found her website right away. I reviewed her credentials and did my research before reaching out to her.
I was one of those people who, after being laid off, immediately thought I had to find another job because I focused on age vs. savings. So glad my husband helped me connect the dots. Retiring at 55 has been the best decision I've ever made.
How do you cover healthcare between 55 - 65 years without Medicare?
@Bluelu69 my husband I still employed so I am on his insurance until he retires next year. We will be on Cobra for 4 months, then will move to an ACA plan in 2026, when our income is lower.
I wanted to retire at 55 but all my money is tied up til I'm 59 and a half
@@cr8685remember during covid people could take money work no penalty?
@@cr8685 You should have built a liquid cash bridge account to span those years. Our bridge is halfway complete and will allow for 6 years of all-expenses paid living, even without social security. But that is not our goal. It is our backstop to use only if markets tank, so we don't touch principals.
This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
it's true, Azul. millions of Americans living quite happily in retirement on way less than $1M. it's about expenses and cashflows. good discussion points!
Ive never netted more than 43k my whole life until 2016 and then i netted 58 to 60 till 2020 when the plandemic came. Ive saved 650k and own my home. Zero debt. This video makes me feel good as I want to retire at 62. Lived below my means my entire life. Still had fun and I do have some nice hobbies but always paid cash for things
After seeing several family members retire the biggest key is no debt. A few of them didn't get to choose when to stop working. A few were still fine on SS only because they had very low expenses because of no debt. A couple struggled even with a lot of money coming in just because they had car payments and mortgages.
You'll be fine because you've always done what I refer to as the magic/golden rule of finance: you always lived below your means. I retired more than seven years ago on less than 120K in retirement savings with no debt, mortgage or otherwise. I am not struggling, and am enjoying life. Believe it or not, although I've been drawing the customary 4% off my Roth IRA for seven years, it's balance is more now than it was when I retired.
You’ll be fine. If you can earn 5-7% on your retirement you’ll make ~30k. You’ll also get 24k in soc security
If you can’t live on ~54k annually with your house paid off, you have a spending problem 😂
Never take advice from someone who says plandemic.
Hi, I’m retiring in two years and I’m curious how others split their income into savings, spending, and investments. I make around $150,000 a year but haven’t saved much. Can you share some advice?
Consider investment planning; gaining insights from an experienced advlsor can be incredibly valuable.
That’s right. I’m a wife, mother of four, and new grandmother. After 28 years in Corporate America, I recently retired at 54. Since the pandemic in early 2020, I’ve been investing and grew my $250,000 savings to nearly $1 million, thanks to my investment advisor.
I’ve been considering getting one, but haven't been proactive about it. Can you recommend your advisor? I could really use some assistance.
Melissa Elise Robinson is the licensed advisor I use. Just research the name. You’ll find necessary details to work with to set up an appointment.
Thanks for the tip. I quickly found her website after searching her name. I checked her credentials and did my homework before getting in touch.
Most Americans will never have anywhere close to $1M saved for retirement. You have to get creative with living expenses. I retired 2 weeks ago at age 62. My wife and I are selling our house and retiring on our boat. We love our boat. We love traveling on it. The views from our boat rival those of multi million dollar homes. Our moorage fee includes water, electricity and WiFi. Between social security and my 401K we are going to be just fine. When we get too old for boat life, we will come up with end of life plans which may include leaving the country for lower cost alternatives. The bottom line is I would never trade my life for spending one more second in a job that was sucking my soul to death. We are very excited for this next chapter!
How much are your moorage fees? Good that you have a plan for post boat-life in old age!
@@bublysoda we’re currently at $490 per month. Once we get the house sold, we’re selling the current boat and moving up to a Hatteras 53. That will put us at $630 per month. Still cheaper than a mortgage, property tax, homeowners insurance, roofs, etc, etc. We wouldn’t trade the water life for anything.
@@philipmayo4865 Hey Philip! While I dearly love to sail, my wife does not. You know the saying - happy wife, happy life. Therefore we have gone the Motor Yacht route. I am certified in sailing through American Sailing Association. I have done certifications through ASA 104 and have an International Proficiency Certification. We currently own a President Yachts 36 Sundeck which we love, but she’s not quite large enough for what would be comfortable for a liveaboard, which is why we’re on the hunt for a Hatteras 53. Our cruising will consist of Florida (where we currently live), Florida Keys, Bahamas and Turks and Caicos, and the Caribbean. We want to take our time and spend a while at every stop. Soak in local culture and reduce fuel costs by staying put a while. If sailing is your dream, I highly recommend taking the ASA courses WITH your wife. You want to make sure both of you are up for the sailing lifestyle. I can’t tell you how many friends I have that their wives flew back from Timbuktu because they didn’t want to deal with another uncomfortable passage. It wouldn’t hurt to take a week long charter and get a real taste of it. While I do miss sailing, I’m not gonna lie. I am VERY comfy on my Motor Yachts. I scratch my sailing itch with my O’Day Wigeon sailing dinghy. Small boat sailing is a blast and so so easy. Anyway, good luck to you! Live your dreams. We only get one shot at this! 😎⛴️⛵️🏝️
@@philipmayo4865 Hi Philip! While I do dearly love to sail, unfortunately my wife does not. Therefore we went the motor yacht route so we both can be comfortable. The old saying “happy wife, happy life” definitely holds true. I took my sailing courses through the American Sailing Association. I have an ASA 104 and International Proficiency certification. We currently have a twin engine Presidential Yachts 36 Sundeck which we love, but not quite big enough to be a permanent liveaboard. Once we sell the house, we will be on the hunt for a Hatteras 53. We love that design and it’s roomy and comfortable. I would take the ASA courses WITH your wife. It’s important you both are comfortable with sailing. I can’t tell you how many times sailing friends and acquaintances have told me a wife flew back from Timbuktu because she didn’t want to go through another rough passage. A word to the wise! I still love to sail. I have an O’Day Wigeon sailing dinghy that scratches my sailing itch. I absolutely love sailing small boats. Anyway, enjoy the journey! You will love it!
@@johnbruenn8755 thank you, John for the advice! I will have to look into the ASA. Do you have a Captain's License? What does the ASA 104 and International Proficiency certification allow you to do, exactly?
May I ask where you and your wife plan to live aboard? Are you on the west or east coast - north or south? We're about an hour west of Philly, PA. I ask because after I retire here I've been considering moving further south where it's warmer but not sure I'd want to go as far as Florida. I here the further south you go the boat slips get more and more expensive. Not sure if that's true though. We both love the Outer Banks in NC so I've considered there as an option.
By the way, John, I looked up the Hatteras 53 boat you and your wife like and it is beautiful! I found a few for sail online. I would love to live aboard like you and your wife plan to do! I'm thinking I need to wait a few more years to let my IRA build up a bit more and then gotta figure out the whole social security thing. Seems a bit tricky to figure out at what age to start taking it but I'd like to get on with my life after working so hard for so many years.
Thank again for your kind message and advice about the sailing certification and I wish you and your wife the very best and hope you can sell your house and find your perfect boat! Hope we can meet some day.
Take care and God bless!
The amount you need for a comfortable retirement is directly correlated to what you need to spend to be comfortable. It's that simple.
There are people who are happy and content and they spend $30,000 a year. This is because the live within their means and they don't buy things that are not needed. For others, trying to live a life that is this frugal is almost impossible.
Just take vacations as an example.
Couple one loads up in the car and goes to a National Park for a week, they bring their own food in a cooler, and they sleep in a tent. That vacation can be really rewarding, but costs very little.
Couple two flies Business Class to Amsterdam , stays in a 5 star hotel for a couple of nights, then takes a River cruise down the Rhine to Basel, Switzerland, then stays another couple of days in a 5 Star hotel. This can also be a really rewarding vacation, but costs quite a large amount of money.
If a couple is happy with vacation one, they don't need nearly as much money as a couple who really needs vacation 2 to be happy and feel comfortable.
When you are thinking about retirement, money is not the first thought you should have. Concentrate on what you need to have in retirement, what is good to have in retirement and what your wish you could have in retirement. Once you know the range of what you need, then, and only then, can you really be in a position to know how much you need to save.
I live in the rural Midwest, house is paid off, real estate taxes were $700 last year. I've been spending less then $1000 a month on expenses. I'll be retiring next year with about $200k. I think I'll be fine until SS kicks in.
I got laid off after 29 years in an electric utility in the end of 2009. I had to short sale my home and asked for a divorce. Lost my minimal pension to my ex and took all the debt. I retired at 65.5 and am now retired living large on SS and my 401 for the last 14 years. I stocked it up for these years and I take home the same $ that I was getting while working a $135k job 🙌🏻, btw I do NOT have a million dollars and am doing AWESOME
Doubtful. Doesn't really add up.
You don’t have enough information to call someone a liar.
@@slocumb1270 no problem. I am living and traveling believe it or not 😛. Get a feduciary financial planner. I am ytd 11.79 return and taking 5% in income minus 15% tax deduction
@@slocumb1270it doesn't add up to you because you don't really understand how the math works.
Scam
I have recently retired on a fraction of that amount - because I was never a collector of useless things.
I have furnished my home with yard sales and estate sales furniture for a fraction of the cost for new. 😊
Me too! Retired 4+ yrs ago. Have way less retirement funds than $1 million. Living the best life ever in retirement because of a few things. I am 76 and still have great health, I feel so lucky for this more than because of finances. When retired I had no debt either mortgage, car loan or credit cards. Because of this my retirement funds have actually increased since the day I retired. I live very comfortably on my Social Security monthly checks. I live a simple life but I have always lived this life so it is very normal to me.
Correct
@@karenbenning2166 You are awesome!
I am 54 with a net worth of about 500k. But I am not sure a lot of money is necessary at all. I would like to work part time in my retirement. It would be cool to be a millionaire, but I don’t think it is necessary
I've been out of retirement for five years now. The 4% rule is something I've been following after seeing it on a RUclips channel, but I didn't anticipate it to be this difficult. I have roughly $800k left over after cashing out a lump sum, but at this rate and with the state of the market (we were investing in an index fund), I'm beginning to worry a lot.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
'Annette Christine Conte, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
I don’t know?!? Apply the 4% rule that financial advisors recommend (or own stocks that collectively pay a 4% dividend) and you get $40K/year from your saved million dollars. Add social security at $24K /yr single or $48K/yr married, can someone retire living off $64K/yr (single) or $88K/yr married? Some may be able to do it while some may not. There’s a lot of cost variables to consider.
4% rule is outdated
Hi Azul. You are giving financial advice. You aren't soliciting business or telling us where to invest our money. But, you have said to invest. And I listened to you and continued to invest and thank goodness. I think your videos and advice opens our eyes. Thank you so much for all that you share. I've never heard anyone complain that they have too much money invested unless god forbid they are about to die and never enjoyed any of it. Save, invest and retire and live a healthy life. That's my take from your videos. You are the best!
He literally said that he was NOT giving financial advice...
He’s sharing his knowledge and wisdom, which is what you’re describing. It’s not really giving financial advice, which would be more directed.
i was laid off at 55 in early 2019 and never worked again. I've been pretty frugal and saved well and have a decent portfolio and no mortgage or car payment and from what the numbers and Fidelity tells me I should be fine. Still I look at RMDs and IRMAA (single tax brackets stink! LOL) and how everything feels expensive now and when I'm Medicare age that will feel even more expensive. I don't know. Thailand is sounding better and better...
So many financial decisions are driven by pain or fear. Pain often drives short-term consumerism and indebtedness. Fear drives obsession with investing and building wealth for a rainy day.
When we can genuinely experience a peaceful attitude and some gratitude in the moment, I’d suggest we’re much less likely to make problems for ourselves with over-spending and way more likely to set up some simple investment habits that will pay dividends in the long run.
I just turned 60 with $900,000 in my TSP. I also have a pension and will draw SS at 63 when i plan to retire. Im debt free except my home i owe $30,000 on at 3.5%. ill pay it off at 63 . Im maxing out my TSP and Roth IRA Each yr now including catch up. I might keep working till 67 because my job is so easy, little stress. I take off whenever i like at this point.
What's your point other than bragging?
I don’t think retirement should be the goal anymore. At 51 I’m learning to use the skills I enjoy using to build new income streams. I’ll be able to easily use these skills to earn money until I’m 75. It’s a great feeling because if you’re doing what you enjoy you think and worry less about retirement.😊
sell everything, buy a tiny house ..
If you keep your house, sell it and buy a 1,200 sq-ft house, put a new roof on it, new septic or sewer line, replace the gas and water supply line, have the wiring and all inside plumbing brought up to code including the water heater, pay cash for 2 nearly new modest vehicles and then live on the most basic monthly living possible. buy a 1,200 sq-ft house with room for a big garden in the back..
you do not need $1-M to retire, but do make sure you can live on your income alone if your wife/husband dies suddenly or just wants to leave you.
Whew! I just passed $1 million last week. Nice to have, for sure, but even nicer to know that it's not an absolute requirement for a comfortable retirement. So many of these say you have to have $1 million or else you'll be eating Alpo.
An important point to make about the WSJ article is that it's talking about people who are already retired: Silent Generation and older Baby Boomers. These are people who are more likely to have a pension and to own a paid-off home. So this means that they don't need to rely only on Social Security and retirement savings. Younger Baby Boomers, Gen X, Millennials, etc will need to lean much more heavily on retirement savings. They won't be able to get by just fine with meager savings because they'll have to rely on their savings so much more than older generations did.
Lots of boomers have 0 pension, too. The paid off home is a big deal, and generations following boomers can achieve that too.
There are articles about Gen X talking to how we are the least prepared of all the generations when it comes to retirement savings. The whole situation is sad.
I am 60 and the youngest child n my family. I know precisely ZERO people who are retired and have a million. They are all doing fine. The whole million plus to retire comfortably is an absolute myth / scare tactic designed to get you to let them profit off your money for as long as possible.
Yes, I’m a boomer. I retired with approximately 100K net worth. I bought a house 5 years ago. I only have one friend who lives in a “paid off” house. It’s NOT easy but it most assuredly is NOT impossible.
If you live in a high cost of living area like coastal California it can cost $4k/mo just for an apartment.
Moving would be a great option in retirement if u live in a high cost area.
@@karenbenning2166 True, but moving also costs (our last move was $13k). And, often people live near family or other reasons to stay. I agree for some it is a viable aid. Some of our family has moved to low cost areas like Kentucky to make retirement easier, but are then all alone.
I believe the reason why the majority of the people in the lower end earnings category were "OK" with their financial well being is because these are the folks who are living within their means. Because of their income level, they have the discipline to make things work with very little room for errors. It's the folks that make more than survival levels who end up in trouble because they are the ones who try to live their lives in the financial brackets just above their means and at some point the chickens finally come home to roost.
There are so many variables, there isn't a one-size-fits all answer to the question of how much you need to retire.
This is the actual answer. It’s impossible to make an accurate generalized statement about how much someone will need because every situation is different.
Depends on your living expenses. That's the key.
I love listening to this. At 54, this year, I retired with a pension and some savings. My question is this, WILL social security be able to pay me (I am fully vested) when I hit 62, much less at 70)? That is one piece weighing over me. Or will the fund be drained?
I could retire very comfortably if it weren’t for my $20k a year in property taxes. I built our house with cash and my wife never wants to move so I’m 70 and still working. She also loves shopping and exotic vacations so I may never retire.
It's always the same principle. Just spend less than you earn. You want to invest more? Cut all your expenses. You want to retire now? Cut all your expenses. It doesn't matter what is your situation. You can't put your money at two places at the same time.
Simon: "You can't put your money in two places at the same time."
Lehman Brothers: "Hold our beers"
While many CAN retire on less than $1M, the more you have, the better. We're not talking about just enjoying a nicer retirement lifestyle, although of course that is welcome. We're talking about all the potential shocks that can and WILL happen in a retirement period that may last 20-30+ years. Failing health and the need for pricey end of life healthcare is number one, but also expensive home repairs, runaway inflation due to a global pandemic and supply chain shortages, and the growing costs of climate change disasters (insurance, etc.). Just the last four years alone has shown us what can happen, and will absolutely happen again and again. Take comfort you don't need stratospheric numbers, but don't let off the gas pedal trying to build up as big a nest egg as you can.
There in no one "magic number." You can drastically reduce how much money you need in retirement by living in
a low-cost area, delaying retirement, working part-time in retirement, getting help from family or having a roommate or boarder. Most people find ways to get by with modest savings. If you want to retire early, stay in your large house and travel and have luxuries, then yes you need a big number saved up.
Azul, good info. One thing, the median is a much better indicator than the average because 1/2 are above it and 1/2 are below it.
What wasn't discussed is where the retired person lives. If they live in a low cost state like Omaha, North Dakoda, Tennessee, Mississippi, etc. you could live on $50K a year. But if you live in NY, CA, MA, etc. you will need much more.
All depends on where you stand financially at that point in time. If you home is paid for and debt free, you carry no other debt, then in higher income states like MA, CA or NY may be stretching it to survive on $50k, but it is certainly possible.
Ultimately however, people should theoretically have made more money in the higher income states, and therefore saved more than average. As they also had higher salaries, their SS income would be higher. The max benefit at 67 is $4000 a month, so in higher income states, a couple could be getting $8000 a month, or $96k a year from Social Security alone.
Ongoing OPEX tied to "life" requires alot of money - Alot of money.
Big difference between living vs. existing ...
You need $60k per year minimum to exist...
0:50: When my wife and I met in 2007 we were both in debt and working hourly jobs. Now we are $70K away from being in the 4% of Americans with $500K saved. That is crazy! But then again, so are we when it comes to aggressively saving as much as possible all that time. Well, once our debt was paid off around 2017. There is NO REASON why Americans should not be able to do this. The ones that don't have CHOSEN not to do it.
It isn't that simple. It all depends on things like salaries, kids, area people live in, etc. etc.
Right out of college (as I was starting my career) I read "The Wealthy Barber" by David Chilton. That book changed my life. I'm now 55 years old with a plan to retire at 58.
Best $20 you ever spent. Probably $10 back then. It is amazing the power of a good book. Congrats on being so close to being able to retire. Well done! 🚀 Azul
@@AzulWellsWhy do you allow these “financial advisors “ to advertise in the comment section of your video?
My parents retired with 600k. If you're married, debt-free, and simple, 2x SS pays the daily bills. Investments are for the big sinking costs. The problem comes, and it really is a serious problem, when one spouse dies. I've observed many do not think about that when using SS as the main source of income. You really should have at least a mil invested. 1.5 doesn't sound unreasonable to me.
There are strategies that address part of this issue for when a spouse dies. Everybody should do their own checking, but often, the lesser earner takes their social security at 62 (if they need that income to live on), and the higher earner waits until 65 or 70 for the bigger check. When a spouse dies, the surviving spouse retains the bigger check and loses the smaller one. That’s our plan. And for those in greater need, look into a reverse mortgage.
Nobody has that kind of money. Less than 10%.
Yes, my parents have this worked out as well- however, even if my dad dies first, my mothers income will be cut to a level that isn't sustainable. Without the 600k, it would be an untenable plan. Concerning the mortgage- my parents would never finance retirement- their nature is simply too conservative. They would sell first.
@@jaygold4467 About 1 out of 10 actually does- that's a pretty high percentage. A few hundred bucks a month into any decent index fund starting in your mid 20's easily gets you there. That's not unattainable or unreasonable, and most anyone can do it.
Notice it talks about couples. Once a spouse dies that's when the hardship can start. I do credit counseling so my advice is to pay off credit card debt before retirement, pay down or off your mortgage, so avoid refinancing and avoid buying car. In fact consider not having a car at all once you stop working unless you have an extremely active schedule.
Maybe not but if feels a lot better to have $1m. Especially in early retirement
all of those researches have limited value because one that saved only 100K may have 2 rental paid off properties, pension, and ss. In addition no mortgage, etc. Of course s/he will do much better than OK in comparison with one who saved 1 mil and has only small SS and need to pay mortgage, car loan etc. Everyone situation is totally different and amount saved plays only limited role.
Yeah, I have some rentals and I'm too nice to the tenants. I probably could sell the properties and put the proceeds in US Treasuries, and earn the same with no repair calls. But I just view the rentals as passive equity, emergency money if I need to ever sell. Sort of like holding precious metals. The tenants have been good people, they take care of the rentals and get along with the neighbors. It's a no-drama investment for me.
The ongoing discussion about retirement assets completely ignores the other important factor of income. It's quite possible to live with little to no assets but still have a sustainable lifestyle within the limits of pension and SS.
Not everyone gets social security. I’ve got a government job the takes what would be the SS money and puts it in a self managed account. So I’ve got to be extra sure I have the $1M+ because there is no cost of living adjusted SS in my future to fall back on.
Not sure what the magic number is but I would cry if I only had 100k at retirement. Putting at least $100 a month at beginning of career in a retirement fund adds up.
Bah, don't cry. All we had was a paid off home and a small pension. SS and my job ( got bored sitting home) give us plenty. I put half my check in the bank and give the rest away. Our secret was waiting to collect and avoiding debt.
Hope the government eliminates taxes on social security
Not holding my breath though
Our current Government cares more about illegals than seniors.
There are no taxes on SS if that’s your only income regardless of how much you receive.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Lourd-Bab However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@Bestjudy001 Oh please I’d love that. Thanks!.
@@Lourd-Bab Clementina Abate Russo is her name.
Lookup with her name on the webpage.
I tend to agree with this. Providing your expenses are low, you really don’t need nearly as much as the finance industry wants us to have.
not if you want to enjoy life in retirement vs existing.
@@zoomzoom3950 i do far better than exist on the kind of income a 1 million dollar portfolio produces, and i live in New York. Having low overhead and a small, low effort income stream would be enough for me to retire on that kind of nest egg. Just because you can’t imagine living well with that kind of nest egg, doesn’t mean others can’t.
People in my office say they need 3 Million.
I was flabbergasted.
When they say a certain population has less than X, is this only in 401k or can they match Roth IRA, HSA, etc. to the same person? Also, do they know if these folks have a pension from work? Are they homemakers who rely on their spouse's savings? And what age are these folks when the snapshot is taken?
How many of those people with less than $100k in savings who now say they're living comfortably worked until they were 65 or later, plus how many of them also had a pension? Savings becomes far less critical if you have 40-70% of your salary coming in on top of social security for the rest of your life. That $50K-$100K in savings becomes just an emergency fund to augment your guaranteed pension and social security income. So talking about how much "savings" you need to retire is extremely subjective depending on your situation.
Your video is well crafted. We are in out late 50s now. Back in out mid to late 20s my husband (then boyfriend) suggested that we save for retirement. I was astounded that he would say that. We did it anyway and while we have lost a great deal of money throughout the decades out portfolio is around a million. Why do I think we won't have enough? We live in high tax California! I require eye specialists. The weather here is temperate and most people stay for the weather. We will draw on social security when my husband is 62. I will delay mine until about 70. I want to stay in my home when I am really old so we have to plan for in-home care as well.
Health Insurance. That’s my main concern. I could POSSIBLY retire next April @ 62.
You can do the ACA for 3 years until 65 when Medicare takes over.
It really depends on the age you wish to retire, your annual expenses and when you plan to take Social Security. If you are in your young 50s, have expenses of $70k+ a year and not taking SS until late 60s or 70yr you will need at least a million.
Dont we think that many seniors right now have social security plus pensions? Especially those who are comfortable with low savings?
I’ve had a bit of experience in financial services in the early years of my career. Hopefully it goes without saying that Advisors are sales people who have a personal financial interest in making a case for customers to invest with them. This doesn’t make an Advisor untrustworthy but it does mean that some of the high-level maxims like, “you need $1 million to retire” could also be stated as “boy would all the advisors out there be sitting pretty if everyone was trying to safe $1 million by age 65 or sooner!”
The key for individuals is to dig into their particular circumstances and goals. The stats you share (nearly 50% of Americans have nothing saved) suggests that millions have already retired with little or nothing saved and I suspect that’s working okay for at least some percentage of those people.
Particular circumstance and goals?
We are simply talking about basics: Food, Rent, Utilities and Medical bills.
These arguments are subjective opinions.
Please write a spreadsheet.
Clearly, you don't know how much you spend in a year.
There's a youtuber I watch that is retiring on social security. He and his wife have some investments but they're trying hard to leave that untouched for now. And they're doing ok. They have to watch the budget certainly and they can't fly to Europe for a two week vacation whenever they feel like it. So what?
Would you tell us who this is? I'd be interested in watching some of their videos. I plan to do something similar. I'm turning 55 early next year and will have a 27 year pension worth $3k per month (which includes a partially subsidized health plan through the company.) My wife took SS at 60 (survivor benefit) of $2400 per month. Together, we have 1.2m in savings between my 401k/IRA, etc. We're hoping with $5400 per month we won't need to touch our savings for a while. No mortgage but still have one car payment.
@@daved2023 Buzz's Retirement Garage. It's not in any way a competitor to this channel so I suppose it's ok to mention it here.
@@xlerb2286 Thanks!
Let’s hope the Republicans don’t screw us on Social Security… 🤞🏼
500k invested would supply enough for someone to retire if the house and car is paid off
Until the house needs major repairs or the car needs to be replaced. Don't plan on doing too much other than staying home and watching Netflix on that amount either.
Azul, I love the videos and have learned a lot as well as have had a lot of confirmation on my planning which really eases my mind. I’d like to see more about when you do retire, how to make your money go further. I live in the shadow of Philadelphia and have been able to do well. But when I retire I plan to move to a place that has a much lower cost of living and better tax implications.. both retirement taxation as well as property tax wise. If you could talk to that I think it would be well received.
I have over 2.5MM for retirement savings -- I do not know if it will last the rest of my life. I want to leave a legacy to my three kids. Should work - but to what extent? Life is good for now - but I would like to contribute more to the charities I respect!
It'll last if you don't give it away.
It depends! I am 61 and been retired for 2 yrs! I am retired Army Vet with 100% VA rating, and forced in SSDI!!!!! I live in southern rural Illinois, no property taxes!!!! Wife is 64 and gets only SSA! We make over a 100,000 grand a year and live very comfortably!!!!! We brought our retirement home when retired!!!
I'm focusing on 1 Mill because if I leave the workforce early, I will have to pay for my healthcare out of pocket. Help me understand if I'm wrong, but what if I get cancer later? Extensive dental care? I will have to pay for all of that.
I think whatever a person has they just need a little bit more to retire.
As Montgomery Burns said: I’d give it all away for a little bit more
Very true. Thanks!!!
I don’t know man. Relying on social security doesn’t seem like a good idea.
I know what you’re saying, but unfortunately for some of us, that’s all we’ll have.
What about looking at their total assets? Do they have private or government sector pensions ? Are these people selling their homes and down sizing and living off the difference? These studies are not helpful unless total assets including pensions are counted.
We had/have less than $100k. We live comfortably. We lease a car and have a home equity loan. And still live comfortably. Our house is paid for.
news flash...your house is not paid for of you have a HELOC with a balance
Thank you for this video Azul. Realistically most people don't have a million. I think information on how to retire with less than a million would be very beneficial. I think frugality , debt free living and gratefulness are a huge factor in successful retirement. Travel and dining out is not a necessity and maybe only for those that have more saved.
I only need about 70% of my take home pay...but my take home pay was only 45% of my gross.
Many say you need 80% of your pre retirement income once you stop working . I contend you need 100% or more because what do you do when not working; you spend money. Unless you plant yourself in your house, like a houseplant.
In home health care can quickly become a massive drain on even the best thought out plan.
Good video, Azul.
Retiring early, would like to hear what some are doing for health care. Or even long-term health care. Are they cashing out life insurance to pay for it?
They are broke or have very little income to reprot so they get Obama care.
Eveything depends on where you live, what your health is like, your lifestyle etc. I know I'll need way more than $1 million to retire "comfortably". Social security will likely be cut back significantly, I live in a expensive area and I dont want to just scrape by.
Ill have a small pension of around 1.5k then if i get 1.5k in ss and another 2k a month from investments and i have my major bills paid off i can live comfortably with 5k a month.
My main concern at this time is not being a homeowner and not owning a home by the time I retire. I don't want to be depending on rentals when I get to the point of retirement.
I’m a homeowner and we are planning to rent for the rest of our retired lives (US and abroad ala slow travel). So done with home improvements, fix-ups, mowing the lawn, etc. 😅
What steps are you taking to address your concern? I ask this because it wasn't until my employer cut my hours and salary when I was 49 that I really took a deep dive into my financial situation. I just had a nebulous "I know I'm not really doing well" kind of feeling before that. Armed with the numbers, i addressed my issues and made steady progress. Do you have your plan? Arm yourself with the numbers and go after it. You can do it. (BTW, I'm a lifelong renter and LOVE it, but I get that there are concerns about rising rents.)
@@dgs8011 my wife and make a little over 200k annually have, 401k , IRA, and some CD's but we're also paying for our son's housing and living expenses while he goes to university two more years. We're probably 14 to 18 years away from retirement depending on how we feel when we get to that point. Also living in southern California is expensive. The current plan is to keep saving and contributing.
@@markwilhelm6938 Agree
So how do you exactly figure out how much is the net worth of ones retirement? Take our case: I will be retiring at the end of this year (2024) at 55 after working as an engineer for a large municipality for the last 34 years. I will have a little over $100K annually in pension with yearly COLA and 50% spousal benefit continuance. Health insurance is paid for both of us up until 65 then we have to sign up for Medicare. However, the Medicare premiums for myself will be reimbursable by my retirement system. I do have some money saved up in deferred compensation (457B) of about $927K. House is mortgage free and is currently worth $1.2M (we're on West coastal town). I am ineligible for social security since I have only worked for the government all my life. My spouse (62) just started receiving a modest social security this of $800/month this year.
What's your point? It sounds like you have enough to live on.
I’m assuming this is for people currently retiring. For the other generations, social security will be minimal if it is even around. They won’t have this additional $40k a year safety net and will need to rely solely on their own savings.
Yep none of these arguments are presented.
Inflation, medical bills, changes in government policies, etc...
Not a spreadsheet and not even an interview with real life retired people.
My goodness!! Government pensions are important to consider here! With a two-pension household, say two teachers, there is the eternal paycheck arriving EVERY month, forever. They don’t need to save anything.
Our $700,000 senior patio homes in our neighborhood are filled with former government employees. Not the top dogs-just teachers, engineers, etc. Many homes both husband and wife have government pensions.
A high percentage of retirees entering retirement have these pensions.
No you don’t need 1 mil depending on; mortgage paid off, debt, health insurance, etc.
I wonder what health care costs be like as I get older and need specialized equipment and supplies to maintain my lifestyle (e.g. motor wheelchair, adult diapers, etc.)
Doing ok or living comfortably isn't saying if they're living their dream retirement or just eeking by. Just because "most Americans" haven't saved squat, doesn't mean I want to be in most Americans shoes in my retirement. I want to live, travel, buy things and not need a calculator to see if I can or can't buy what I want. I don't buy into people telling me what I do, or do not need. You aren't me, never have been me and never will be me. Nice video, but it doesn't fit my plans. 🙂By the way I'm not retired yet and I'm in the over $700k club.
I so agree with this statement. Don’t try to mimic what other people do, focus on your own situation. My goal is to have 1.5M by 65 where my wife and I can both retire. And live a life where we can travel two times a year. Other people can do with less, and that’s ok. In a way I’m jealous of these people sometimes because it’s stressful at times putting so much money away each pay check and having so much market volatility.
I love your videos. I've learned a lot from you! But that shirt was "the bomb". Love the shirt!!! LOL! Great taste in clothing! Thank you for all you do for us!
I completely disagree.....unless you give up all "fun" and pay off all debts such as auto and home
i had a few relatives now who passed who only rely in SS but they were comfortable based on their own lifestyle definition. a few was living w kids and took care of grandkids until they passed… others stayed just at home worked on. backyard garden, etc. Life is short, many old people regardless of nest egg just drop dead from heart attack or cancer. so yeah, there is some truth to the survey of existing retirees
How come early retirees don’t talk about how they manage healthcare coverage?
I’m interested in this as well. I’m 61 and want to retire tomorrow.
@@stevecrocombe6584have you looked into the ACA?
They are all on Medicare
@@matthewberkland7934 Medicare kicks in at 65, that’s not really early retirement. It’s the coverage prior to that.
This
I see it as I take home 52k a year plus wife's 20k. To keep our lifestyle I will need that in retirement. 1 million invested in a stock with 7% dividend will provide that. Collect 70k plus draw down the million as life gets more expensive
Is this a poll/study that was done of people who have retired, and ignores those who have not retired because they couldn't afford to? It seems it is skewed then in favor of those who can "manage" on that small amount of money perhaps due to ample pensions (i.e. Social Security) and assets (home/car) besides savings.
Frugality is the most important part of the whole thing. Live beneath your means and you will probably be absolutely fine. Learn to make good spending decisions and only spend what you need to.
We are fortunate to have both been in solid professions. My social security will be at LEAST $3K retiring early (before 64). My wife's will be $2K+ so that's $5K/month (retiring before 63) which is apparently higher than shown in this video. I turn 62 this year which is relevant. The line that "you need a large percentage of your CURRENT income" is cray-cray. It's not like we will have a mortgage nor car loans nor have to pay for kids colleges so we will only need a small fraction of what we USED to earn so even without our investment nor rental real estate, we should be able to live on $5K/month in 2026 with NO PROBLEM!
This is encouraging.
$46000 dollars is a pretty huge amount from social security (at 25x it's worth $1.15m if it was a pension). In the UK the state pension is £11,500 per person (if they have a full work record) and perhaps a few other benefits that are more difficult to enumerate on top (free bus travel, pension credit, other concessions) - that's £23,000 which is $30,000 equivalent. The fact is, retired people vote, and voters get concessions and boosts to get their votes, and that happens in the US and the UK. One big problem with the UK state pension is that you can't get it earlier in any manner (e.g., reduced payments) which is very restrictive.
It costs a lot less to live in the UK, I'm a brit living in USA, we have medical costs, full coverage for a couple in retirement $1000 a month. Then home insurance, car insurance, property taxes are a lot more here as are groceries. There are no pension credits, free busses for retirees. We need 3 to 4 times income to survive here.
@@taffyalusa4642 Yes, medical coverage is a lot over there (although the NHS over here has been trashed by the previous government), insurance has gone up a lot in the UK recently. It seems difficult to meaningfully compare retirement costs between the two nations.
@@AgileSnowWeasel I hope Britain isn't headed towards privatization, brits don't realize what they got.
I’m guessing that the Social Security benefit numbers that you are citing are the nominal amounts projected by the Social Security Administration and do not reflect reduction by the recipient’s federal tax rate and the cost of Medicare part B.
I am assuming most people in this study are over 65... Without social security and cheap medical insurance (Medicare), retirement is very tough for most people and you need much more assets saved. Most couples spend $5-7K a month. This would eat $100K in less than 2 years.
Enjoy your content. Would really like to see links to this study and other source material.
The biggest cost for Americans is housing, so if it is paid off, retirement cost would be lower. If not, retire overseas. I bought my home at 26 paid off by 38 and retired at 45 with around $1.2M saved and about $30k passive income.
It's a nice benchmark and goal though 😊🙌