Great content in your channel, I’m 53 and my husband and I reached $1M net worth in 2017, five years later it’s $2.4M. Our yearly salary is a little over $100K. We drive older cars, cook at home, eat leftovers, and have 2 in college. We saved for college and our boys help by working. They will graduate debt free.
Roth conversion ladder and geo-arbitrage is a great combination for limiting expenses in your early years of retirement and minimizing medical expenses due to healthcare being much cheaper (without insurance) outside of America. Lowering your expenses (therefore lowering withdrawals) in the early years of retirement can have a huge impact on the success of your retirement and helps mitigate sequence of returns risk.
Not everything is ACA or COBRA for early retirees when it comes to health insurance. Some folks retiring early may also have a choice for retiree medical from their employer. It may be rare, but it's out there. I retired at 56 with this benefit and a ridiculously low premium.
good presentation...Roth you need to hold for 5 years before you can access what you put in penalty free? Rule of 55 is the year you turn 55 so if your birthday is dec 31 and you turn 54.... that Jan... you can apply the rule of 55
I’m several years past this phase but it’s nonetheless enjoyable and informative to listen to how Mr Conole discusses how all the moving pieces work together in the bigger machine.
Love your enthusiasm for this and different approach. Too bad you're not in Australia and across our retirement rules. Regardless, I'm still getting some similarities and ideas. So thank you!
Why do we pay taxes on social security? I’m glad I discovered your videos. I just started thinking about my retirement. After listening to your videos I’m way behind in my retirement plans.
Hi Choling, I'm glad you discovered them too! Social Security isn't going to be taxed as much as most other income sources, but depending on your "provisional income" between 0% - 85% of it will be included in your taxable income.
When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech, and Health.
Thanks for the video, though I wanted to clarify one inaccuracy at about 7:18 in the video. You say regarding the Rule of 55 that you need to be with the company until age 55. My understanding is that you need to be at the company until the year in which you turn 55, which is very different. Thus if I turn 54 on December 31 and leave my employment the next day, I qualify to take money out that year. I can't take the money out without penalty until I turn 55 on December 31, but I only have to stay employed until the prior January 1. This is a big distinction, especially for someone like me whose birthday is late in the year. Thanks again for the great content.
I figured most of retirement estimate are to high. After you start to receive social security, it will cover most of your living expense. You can live comfortably with a small supliment income from IRA or rental income. So just plan the years before social security kicks in. You can live and travel to cheaper countries with much less budget.
The fact you can avoid the 10% penalty from early withdrawal from a 401k is news to me! As long as I retire at age 55 or later and only make a withdrawal from the 401k from the company I retired from. Is that correct? Thanks James!
@@RootFP Thanks again! This information is for a friend, not myself. I'm 52 and plan on not touching any of my retirement accounts early, or until I need to!
To be more specific, to avoid the 10% penalty, you may leave your company with which you have your 401k - during the year you attain Age 55. So, if your 55th Birthday is, say, Sept., 2023, you're fine if you leave that employer on or after Jan. 1, 2023.
Great content James! Quick question, In a brokerage account could I set up a mirror investing plan like my roth iras holdings? Index funds? So it's seperate and accessible like you discussed at around 9:45
Great content in your channel, I’m 53 and my husband and I reached $1M net worth in 2017, five years later it’s $2.4M. Our yearly salary is a little over $100K. We drive older cars, cook at home, eat leftovers, and have 2 in college. We saved for college and our boys help by working. They will graduate debt free.
Congratulations 🎉
All great and useful information, no fluff, and no gimmickry like those annoying, shouty financial RUclipsrs. I love it-subscribed!
Thanks Akweli!
I totally agree.
Roth conversion ladder and geo-arbitrage is a great combination for limiting expenses in your early years of retirement and minimizing medical expenses due to healthcare being much cheaper (without insurance) outside of America. Lowering your expenses (therefore lowering withdrawals) in the early years of retirement can have a huge impact on the success of your retirement and helps mitigate sequence of returns risk.
Not everything is ACA or COBRA for early retirees when it comes to health insurance. Some folks retiring early may also have a choice for retiree medical from their employer. It may be rare, but it's out there. I retired at 56 with this benefit and a ridiculously low premium.
That’s true! And it’s a great benefit when it is!
Thanks for the well thought out and clearly communicated content! Great job.
Thank you!
good presentation...Roth you need to hold for 5 years before you can access what you put in penalty free? Rule of 55 is the year you turn 55 so if your birthday is dec 31 and you turn 54.... that Jan... you can apply the rule of 55
Very thorough and full of very useful information. Thanks
Thanks Paul!
I thought I basically knew everything but you've opened my eyes to some really great ideas! Great insight! Thank you so much!
Glad it was helpful!
Great info. Thx
You're welcome, thanks for watching!
I’m several years past this phase but it’s nonetheless enjoyable and informative to listen to how Mr Conole discusses how all the moving pieces work together in the bigger machine.
I’m glad to hear that. Thank you.
Actually you need only retire the year you turn 55. The irs doesn't care if your already 55 for 491k money just as long as you turn 55 that year.
Love your enthusiasm for this and different approach. Too bad you're not in Australia and across our retirement rules. Regardless, I'm still getting some similarities and ideas. So thank you!
Thank you, Vanessa! Glad you liked the video!
Why do we pay taxes on social security? I’m glad I discovered your videos. I just started thinking about my retirement. After listening to your videos I’m way behind in my retirement plans.
Hi Choling,
I'm glad you discovered them too! Social Security isn't going to be taxed as much as most other income sources, but depending on your "provisional income" between 0% - 85% of it will be included in your taxable income.
When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech, and Health.
Excellent points. Thank you
You’re welcome!
Thanks for the video, though I wanted to clarify one inaccuracy at about 7:18 in the video. You say regarding the Rule of 55 that you need to be with the company until age 55. My understanding is that you need to be at the company until the year in which you turn 55, which is very different. Thus if I turn 54 on December 31 and leave my employment the next day, I qualify to take money out that year. I can't take the money out without penalty until I turn 55 on December 31, but I only have to stay employed until the prior January 1. This is a big distinction, especially for someone like me whose birthday is late in the year. Thanks again for the great content.
That’s my understanding as well, it’s Jan 1 of the year you turn 55 that you can withdraw with no 10% tax penalty.
Excellent information
Thank you for excellent information
You’re welcome!
Very insightful, thank you!
You're welcome!
Health insurance is the main reason I’m moving out of the US. No other way I’ll be able to retire early.
Yes, health insurance is typically one of the biggest expenses for early retirement.
You don't have to leave the US, In some places, you can leave on $2,00 0 a month, rent and living expenses included.
Great info. Thanks!
You bet!
Healthcare costs are a big question mark. That seems like a huge x factor
Great video by the way
Yes healthcare is a big variable for early retirement!
Very, very informative. Thanks
Thank you again for the great info
You’re welcome!
I figured most of retirement estimate are to high. After you start to receive social security, it will cover most of your living expense. You can live comfortably with a small supliment income from IRA or rental income. So just plan the years before social security kicks in. You can live and travel to cheaper countries with much less budget.
The average social security is about $1600, that isn't much
Awesome video James!
Thanks Lucas! btw - Scott and I answered your question on the podcast. We'll be releasing that episode in the next few weeks.
@@RootFP Wow! Thanks so much, I’ll be looking forward to it! Highlight of my Wednesdays!
Great video James! I’m glad you’re in CA, because I have tons of questions. How can you be reached?
The fact you can avoid the 10% penalty from early withdrawal from a 401k is news to me! As long as I retire at age 55 or later and only make a withdrawal from the 401k from the company I retired from. Is that correct? Thanks James!
That's correct!
@@RootFP Thanks again! This information is for a friend, not myself. I'm 52 and plan on not touching any of my retirement accounts early, or until I need to!
This may or may not be true, as the employers can choose to allow or not allow the "Rule of 55." My employer does not allow this, unfortunately.
To be more specific, to avoid the 10% penalty, you may leave your company with which you have your 401k - during the year you attain Age 55. So, if your 55th Birthday is, say, Sept., 2023, you're fine if you leave that employer on or after Jan. 1, 2023.
I don’t care about traveling the world that’s too much work!! Bills paid, beer, and BBQ every day is the dream!
You are amazing !! 😊
I really appreciate this video. I am 53 and trying to figure out full or semi-retirement.
I'm glad it was helpful!
If I retire early (at 57 years old) am I still qualified for social security when I am 67 years old?
Great content James! Quick question, In a brokerage account could I set up a mirror investing plan like my roth iras holdings? Index funds? So it's seperate and accessible like you discussed at around 9:45
Yes, you can. You can hold the same funds in each. They’ll just be taxed differently.
With the 72 (T), is it the lesser or actually the longest of 5 years or age 59 1/2? Thank-you. I really enjoy watching your videos.
I'm glad you're enjoying them!
Thanks for this video 📹 👍🤑
You're welcome!
I am 33 and retiring in Europe. This video did not help even a little bit.
I didn't watch the video but retire abroad is the way to go.
I'm 65, never worked in America and just recently moved here form the UK. How do I sign up for SS?
Bill, you will not receive any SS as you never paid into the system. Sorry.
You can't unless you pay in 40 quarters. You may be able to marry an American and get spousal benefits if that's an option
How do i reach you?