I'm a single, 43-year-old mother who resides in Hamburg. If everything continues to go well for me, I intend to retire at age 50. I couldn't be happier right now than I am that I just bought my first house last month. I'm so happy that I made wise choices that altered my life forever.
Salutations, dude. At your age, you're doing extremely well. I'm 54 years old, and right now my finances are a mess. Any helpful advice would be greatly appreciated in helping to mold my life. I want to buy a home of my own.
It seems like I used the FIRE movement to manage my finances. Investigate it further by doing some research. With the help of a financial professional, they were then successful when investing in stocks, cryptocurrencies, and real estate.
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.
That's right. I am a wife, mother of four and new grandmother, 28 years in Corporate America, retired recently at 57 after discovering the freedom investing could provide, been contributing to my portfolio since the pandemic in early 2020, and have grown a $250,000 savings account to almost 1 million, credits to my investment advisor.
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 resume.
I’m 67 and did calcium score last week and it was 0 !! Yes health is everything, I go to gym 3 hours four days a week and I’m in best shape of my life. We paid off house,cars and have zero debt, it’s the best feeling waking up everyday owing no one. 🎉🎉💪
That's fantastic news! Congratulations on your excellent health and your commitment to fitness. Achieving a calcium score of 0 is a remarkable accomplishment and a testament to your dedication to maintaining a healthy lifestyle.
@@kellanhills1972I think that’s common knowledge. My sister is only 72 and her health is a mess. She actually has nothing to look forward to. She has a beautiful house and plenty of money. She never worked out, smoked heavily until she was 50. She survived cancer and her body is not doing well. Nothing can happen if you have poor health.
@@kellanhills1972 I would rather live in a box any day than have liver cancer and live in a 50 million dollar mansion. You can always pull your self up but you can’t heal yourself. I was referring to your normal everyday person, and yes your health is MOST important!!
Yeah, good for you. Maybe when I retire I'll go to the gym 3 hours a day 4 days a week and get back down to 185 pounds. You are one of the 10% that has that score at your age. But I will tell you friend, don't count your chickens before they hatch. Yesterday is a memory, tomorrow is a hope. You have today to live. So, LIVE!!
I still remember handing over the final $35k payment to the bank to pay off our home several years ago. It was indescribable, and our rate was well under 5% at the time. Didn't care. The simple peace of mind allowed me to retire very early and sleep very well regardless.
That must have been an incredibly satisfying moment, handing over that final payment and knowing that your home was truly yours, free and clear. Achieving that level of financial security and peace of mind is priceless, regardless of the interest rate.
@@daveb-d4t I moved to Phoenix. My property tax is $1600/yr. I don't know if you consider that insane, but to me it's a good value. City gov here does an excellent job improving the city. I self-insure my house. A little scary but I slow flip my house so have remodel from the studs in and know how safe it is. I'm here all day everyday so hopefully could spot a problem. Natural disaster is a very low risk here. Worse case my house burns to the ground and I'd only have the lot to sell, but that's about $200k and I'd be OK. Most insurance claims are for things like lost person items, replacing fences blown down that were already falling apart and other small stuff really unrelated to losing an entire house. I don't see a lot of house fire here in Phoenix where the house is a total loss. So for me, I'll take the risk.
Retired in 2008. Paid off my house just before I Retired. I have a pension, SS, and savings. Live modesty and spend less than my income. Now 78 and health is reasonable. Not perfect. Have hobbies and friends. Go to the library weekly. Have one adult son who will inherit. Overall live has more positives than negative. Satisfied.
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 precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been using a portfolio coach for more than two years, and I've made over $800,000
Annette Marie Holt'' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for sharing, I must say, she appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.
In addition to your thorough financial list I offer this; being able to feel like you have enough. This can come from being financially secure, but also from keeping an attitude of not needing more than necessary. Couple this with gratitude for a comfortable life and you will find happiness.
Absolutely, finding contentment and satisfaction with what we have is a crucial aspect of financial well-being and overall happiness. It's not just about accumulating wealth or possessions but also about cultivating a mindset of sufficiency and gratitude.
@@Jsfrog Those are questions that you will have to seek out answers on your own. No one can give you a better answer than you can find through experience, or gnosis.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Finding financial advisors like Marisa Breton Dollard 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 greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Marisa Breton Dollard up and send her a message. You've truly motivated me. God's blessings on you.
"The thrill of buying something," my wife likes to shop thrift stores for clothing gems. I was looking around in there one day and realized that everything that was donated gave someone excitement when they bought it, and now it's for sale for pennies on the dollar.
I just retired a couple weeks ago from the federal gov’t and I’m also a military retiree. By your account Jeff I should be in good shape and retired happy. Oh wait…I am VERY HAPPY IN RETIREMENT! My advice to others is to grab the golden ring as soon as you can…don’t wait!!! Life is too short!!!😊
Absolutely, the allure of impulse buying can have long-term consequences on your financial future, particularly when it comes to saving for retirement.
You should have good health insurance though the single best health provider is yourself. I’ve spent the last 23 years of my career in health care and learned that weight is the primary contributor to poor health, including knee and other ortho surgeries from being too heavy. My simple recommendation is age appropriate cardio, flexibility and resistance exercises with periodic lab work. Try to keep your BMI under 25 and your A1C (3 month blood glucose average) under 5.5 60% of adult Americans are pre-diabetic (Type II), which is an A1C between 5.7 to 6.4. 6.5 and above is clinically diabetic. When our maker created us, we were designed to move. Keep moving (exercise) and eat wisely.
10 Signs You Retired Well 1. Time to enjoy your retirement life 2. Loving the place you will be living in 3. Having a vision for your retired future 4. Your Home is paid off 5. In good health, for your age (Calcium Score) 6. You know your retirement expenses well and they are well managed (Using a budget - avoiding Cheap Creep) 7. You don't have to support others in retirement 8. You have good health insurance (the best health insurance you can afford) 9. You have an emergency fund (protecting the downside) 10. Your portfolio is in good standing (You have a secure income stream that exceed your spending) You understand and execute your plan to achieve the maximum economic utility Great Video Geoff...
Great video, Another factor to add is Do they spend a lot of time planning their financial future? The majority of people do not engage in planing for their future
Opting for an investment advisor is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 45% since Q2.
Sharon Ann Meny 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.
Jeff, (apologize if I misspelled) I have watched for quite awhile. I care for my mom 24/7/365 and although I am not retirement "age" I invested well and had a substantial savings account. No debt, paid cash for vehicles & houses. Hope to sell my house (in a nice lake community) b/c caring for my mom, her property & my house has gotten a bit overwhelming. Please encourage seniors to have a fund for respite care. A day (or week) off would be fantastic. Just a thought. Be well & as always great information.
By your description you and her should have enough set aside for respite care. Be careful that you might not have healthy boundaries between you and your mother. You are not neglecting her if she pays for your respite.
I retired 22 years ago at 45. For the past 15 years my total spend has averaged $600/mo. Even with inflation that spend has remained as I just learned new ways to save money. I love it. In 3 years I'll take SS and my income will be $5800/mo. I'll be living in SE Asia then and expect my monthly spend to increase a lot, but probably just to $2400-3000. I'll have $530K cash too, so saving $2800/mo is a little bit silly. I'm seriously having to figure out things, lifestyle, that I would want which that income could provide. But yeah, still has to be within my means. It's a weird thing that for my whole life "within my means" meant not spending too much, but now it means not spending too little. I found it easier and more fun not spending too much. But I assume I'll adapt.
One of my dreams in life was to retire with enough income to give to causes I believe in, both through finances and time. I can do this, and it is my greatest joy as I hit my seventies.
That's absolutely wonderful to hear! Retirement isn't just about enjoying personal leisure time; it's also an opportunity to give back and make a positive impact in the world.
Thanks Jeff. I am going to throw out one more concept that perhaps peeps in retirement should consider. PTSD after working for decades. No, I am not a career soldier but the simple fact of not working in heavy work or what not and then stop working. Took me a couple of years to deflate. Know where you are headed. 60 and doing fine after I got my head straight.
I agree. Took 2 years to readjust sleep patterns and wake up with no anxiety. Now life flows at a slower pace and I'm more at ease relaxing and taking my time with small projects. No guilt, no multi-tasking, just peace.
That's a valuable insight, and it's something many people may not consider when transitioning into retirement. The shift from a structured work environment to retirement can indeed bring about emotional and psychological adjustments.
Yes I stopped working 20 months ago. Occasionally get the guilts that I am no longer a “productive” member of society especially as u know I have skills that are in great demand and short supply. Ruined my health working crazy hours and stress packed life. Decompressing from the adrenal rush has been hard but yes after 20 months I can now sleep through the night, except when I have to get up and take an old man pee!
Hi Geoff - Just retired July 2023 but still a subscriber. I think you make many good points and appreciate the community service your channel provides. My personality has always deviated from the norm a bit - one of those markers is an interest in philosophy (at this point most roll their eyes). Classical philosophy though was very practical - its purpose was to define the good life and how to live it. This is the elephant in the room in this video and many others. Without having thought about what is good and a good life is first we lack the top level purpose around which all these other planning tips should revolve and optimize efficiently together to be effective. The trick is indeed how we define living a good life. And the problem is we don't define it. This needs to be job #1 I feel. I know this is too esoteric for many - retirement 'planning' is all about money. But to carry over this habit of non-thinking, that running-on-the-treadmill approach, from our productive years can easily spoil what should be a golden age. This may be why some return to work to give themselves purpose and combat boredom. Retirement is a major psychological shift. Knowing this ahead of time it might be easier to plan for and enjoy that transition. IOW our culture has trained us to be non-reflective almost animal level consumers. To have a good life in retirement or at all we need to relearn to be thoughtful.
On the question of whether or not to pay off your mortgage, my advice would be to absolutely do so. I'm not even retired yet, and I paid mine off 2 1/2 years ago. Until you've lived mortgage-free, you simply can't imagine the sense of peace, security, and satisfaction that comes with that achievment. It's like stepping out from under a cloud into the sunshine, and is one of the key elements that has made me confident in my plan to leave the rat race behind me this upcoming summer and start Phase III of life at 58. Do it!
As a 32 year old, my property taxes are almost half of my total house payment (taxes, insurance, mortgage). I just don’t understand people’s excitement for paying off their house cause I’ll still have about half the cost left in property taxes. Could you explain why you’d recommend this? I’m not saying you’re wrong, I just don’t understand it even though I’ve tried very hard to understand it. I just can’t imagine myself feeling any different when I only reduce my house payment by half (it’s not that big to begin with).
@@cody5596I’d like to see your exact numbers, and also where you are in the mortgage as far as the principal/interest breakdown. Either way, you save on the interest you’re paying on the mortgage. You can best do this by making extra principal-only payments. They don’t change your mortgage payment month to month, but it shortens the duration of the mortgage, and that’s when you really save the money. But you’re best off making the extra payments as early in the mortgage as possible for maximum effect. For example in the beginning the P&I might be 100/900, but at the end it will be reversed, 900/100. So your opportunity to save on interest isn’t as great. If you have your amortization schedule for your mortgage, you’ll see it in there.
It's wonderful to hear about your experience and the sense of peace and security that comes with being mortgage-free! Paying off your mortgage can indeed provide a significant sense of accomplishment and financial freedom.
I knew that feeling when I bought my 1-bedroom apartment in cash. Of course, this was years ago and much cheaper then. I was in my late 30s. It was cheaper than the rent I paid for a studio apartment and it is in a better neighborhood. From that point on, I was able to save much easily for retirement. Best decision of my life to live small.
Super video. We are in our 70s. CAC score for wife is 0. Well worth getting it. I am 100% disabled as Vietnam vet affected by Agent Orange. I grew up on a dirt farm extremely poor. Now upper class according to Pew Research. My advice to anyone is to comprehend the fact any choice you make will have a consequence. No exception.
A great deal of stuff accumulated over a decades-long marriage? Friends of ours learned how to list & sell on online reselling sites & are having fun- several positives result: 1) ridding their home of excess stuff; 2) making extra $ to put toward household expenses; 3) engaging in an activity that keeps items from becoming landfill waste; 4) getting vintage treasures into the hands of people looking for them; and 5) they have a hobby they enjoy doing together & they even walk yard sales to source additional items.
Great list Jeff! Retired in 2022 just after I turned 58. My wife retired in 2017 at 54. I was treated like a king the 5 years I worked before retiring, now I’m just a kid playing too much so my wife keeps giving me To Do Lists 😂. My mother-in- law lives with us too and just discovered respite care which is great for multi generational households and caregivers. Retirement is great, more time with family, friends, new friends, new experiences and places to visit. Cheers!
Respite care? We are 65 each and wife’s Mom lives with us. Dementia running rampant 😢. Wife doing all she can to help her but the dementia is a bear to deal with.
Thank you Jeff. V helpful and reassuring when the rest of the world seems off the rails. Balancing the financial, emotional and physical advice is key.
Congratulations on your upcoming retirement! Achieving a debt-free status is a significant milestone, and it's wonderful that you're approaching retirement with such financial stability.
In the last few years I have had various medical tests and also developed many conditions, some annoying, some I wold not know about without a test. Through this life experience, I have come to realize the truth of the following statement: As time goes on we may find we have many conditions we will die with, but not from.
I felt I retired well. Now my 94 year old mother is having chronic health issues. Now my life revolves around taking her to doctors visits and hospitalizations.
I'll come back to this Video in a year & a half. Less than four months from Retirement & Six Months from an Extended Vacation in the Philippines. The Numbers look very good for Debt Retirement by the middle of 2025, delaying Social Security by Eight Months by drawing down my tiny 403b & then being at 102% of my Contract Pay for life. Leaving the Roth for Emergencies & putting using my Social Security for savings & travel.
Great video. You might add that you have faced and dealt with risks. Many of my friends will not look honestly at their homes and dealing with issues until it is a crisis.
We paid off our mortgage in our early 40s, game changer, saved and bought 2 rentals cash. Would never have been able t have what we have if we hadn't paid it off.
I retired well. 1. I can speak with members of my family and have good relations with my neighbors. 2. I enjoyed watching tomato plants sprout from seed yesterday. 3. I study a foreign language daily for free. 4. I am able to read great books. I buy used books so I don't have to make the trip to the library. 5. I check the one credit card I use and nothing is owing this morning. 6. I have a major dental bill coming this week, but I can handle it. 7. As I age, I realize that there are a lot of things that I don't know or understand and am happy that I can learn things on specific subjects by using the computer from at home to research on RUclips. 8. I look forward to my girl friend's daily visit.
Retired fully at 47 as I'd planned, debt free with modest homes but ample acreage and shop facilities (which I built). Roughly half my income is discretionary but my only interests are technical/mechanical/home renovation/building so the stuff I did for fun helped me retire young and makes my overhead modest. I carefully chose a low tax area zoned agricultural. The Air Force was my wisest move but would only have worked had I don't all the other things I did.
Prior to retiring my goal was paying off my mortgage before retirement. Interest rate did not matter. I wanted as much money to remain in my pocket and minimize monthly debt beyond monthly utilities. One less burden to deal with. No regrets.
Paid of a 30 year mortgage in ten years and invested our money for the next 18 years. Hubby and i are debt free and worth over $1 million. We can buy whatever we want, go anywhere we want. No worries.
There's one little thing that all you young self-appointed experts dont understand and wont until you get here.....and that is what happens to your body. At this point I have been retired 14 years, my assets and my income are larger than ever before and I am still accumulating. I have, moreover, accomplished all my life goals, most since I retired, and I live in a magnificent estate in a remote mountain valley that resembles paradise. What you dont understand is what happens to your body. What it feels like. Like other old folks, Ill just let it be a surprise for you........
If you are sitting on the fence regarding his advice on getting calcium score, please get one. Six years ago when I was 70 I told my doctor I wanted to come off taking a prescribed statin for slightly high cholesterol. I’m a regular gym goer, avid tennis player and cyclist; have always passed stress tests with flying colors; eat very healthy. He said fine but told me about a calcium test first. Well when he called me with result it was 595 and not only should I not drop statin, I need to up dosage and consider aspirin therapy as well. At first this seemed like a death sentence but it has caused me to be even more health conscious as well as being thankful for each day. I have also read Attila’s book and highly recommend it. Added motivation to lower my ldl number as low as possible. One of my sons had the test and his number was slightly high. Some of this is just genetic, even if you think you are extremely fit and eat healthy.
I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year.. Investment should always be on any creative man's heart for success in life
seek professionals support not some very cool and semi-knowledgeable guy on RUclips. Personally, I gather information on RUclips but verify with Stacey Macken . If it doesn't align with her report, I avoid getting involved. This way i've been able to save a lot of money while making a lot of money
I'm really fascinated about Investing and I'm lucky I saw these recommendations . I will look her up and drop a message, am really inspired. God bless you...
Stacey Macken is taking the level of trading from end goal of not just making money but really to be able to understand yourself and the money becoming the after-effect. Loaded with experience and maturity!
I paid my house off a few years ago. I’m now 53. I’ve been putting the extra money in savings. I save and my husband invests. That way we are both liquid and have plenty invested for retirement. It’s what works for us.
Definitely plan your future when you are young in your 40s. Budget and Saving are the Keys. It’s not how much you Made its how much you Save. Retire before 60s. Pensions. 7 figures 401 K. House Paid Off. Good Health insurance coverage. Paid for the kid educations. Life insurance and Long Term Care Insurance. Travel Yearly. That’s how we did it.
The “pay off the mortgage or not?” debate never makes sense to me. Look at an amortization schedule - the interest you are paying, especially for the first 15 years of a 30 year mortgage, is insane. People have this idea that it’s a flat 3.5% (or whatever) but it’s not even close - it’s more like 90% interest (literally) and it very slowly goes down. ALWAYS pay your house off as fast as you can!
I paid mine off as fast as I could. I initially took out a 15 year mortgage. I was fortunate enough to get a lot of overtime at my job for a few years. That enabled me to pay the house off in 6 years. A lot of money saved by paying it off early.
Lounging on the deck watching the day go by. Going for strolling walks every afternoon. Eating an essential optimal diet, milk, and taking care of my teeth. Automatically, paying all bills through the bank. Hiring a cook/housekeeper so I, the wife, also get to stop working when my husband does. With 5 pensions, all with COLA, why should I work if I don't wish to?
Late to the comments as I travel a lot now, which is awesome. My biggest issue is a feeling of "guilt" for doing so well while members of my family struggle. I made lots of sacrifices when younger, living far below my means, paying cash for cars, etc so that I could retire somewhat young (55) and travel on the cash I decided to save. Does anyone else struggle with this "guilt" of doing well? It seems odd.
Nope. I retired at 55 also. I don’t think any of my brothers and sisters care but if they did I wouldn’t give a hoot. Some people make so many bad financial choices when they are young that it’s all on them if they don’t have enough when they get older.
Having a home paid off is insufficient. Real estate property tax (REPT) increases each year in many locales. Home and auto insurance costs are skyrocketing nearly everywhere. The state where I live has recently frozen REPT for those 62 and older. SS benefits will be exempt from state taxes beginning this year. I have an 81 year old friend who retired at 55 and took SS benefits at 62. Sadly she is now running out of her retirement savings. Her home is filled with junk. She greatly laments her mistakes. My wife is learning a great deal from her situation. Though not yet retired, she is cutting her spending and decluttering the house. I do not like to spend money on worthless junk. I perform all the maintenance work on my cars to save $$$.I hate to spend money foolishly.
What a load of bull. I like my stuff and I’m not throwing it out. Thing is, I remember using that spanner on my first motorcycle and serving tea to my dear departed mother from that battered teapot. These things are my history.
This is probably lame but I really feel sorry for friends my age,71, who are still working, I’ve been retired now six years and I love my life and don’t regret a single day.
I'm a 48-year-old doctor feeling burnt out from long hours and stress. I've never invested in a retirement portfolio because I've always believed the economy would collapse eventually. However, I plan to retire soon and I'm curious: If you had $120k to invest safely in stocks over 4-5 years to grow, how would you start?
I believe a healthy portfolio has 3 things, at the bare minimum: Exposure to ETFs for increased diversification, Exposure to assets that generate cash flow like dividend stocks, Exposure to market-leading tech.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
acquire the books written by Benjamin Graham and do what he said 1. CYA by having at least $10% in Series E USA savings Bonds. 2. then 50/50 basis into no-load US stock index fund and a no-load US bond or mixed index fund. (As an option you could put 5 t0 10% into International/global index fund as well) Re-invest all dividends and gains, And then do nothing for 3 years. Don't even look. NO STRESS After 3 years, check them over then either continue or invest in other no-load index funds. but only if the math makes sense. Do not ever try to beat the market. Cost for this advice = free. You're welcome, signed "Licensed and very comfortably retired."
Don't retire this young. You still have many years of earning power and you can do something with your doctor skills that don't require long hours and stress.
Anyone at any age considering retirement without at least paying your home off, having zero debt, plenty of retirement income( pensions, 401k, 403b, IRA or roth account) and liquid savings to last at least 30 years after retiring should NOT retire. If you have to get a part-time job in retirement to survive then, to me, you are not prepared to retire. I retired at 60 only after all of that criteria was accomplished( paid off 2 homes) and sleep well every night knowing I didn't leave myself or my wife and family with the financial burden of my lack of retirement preparation. Slow and steady wins the race as long as you sacrifice and save for your and your families benefit. You can then retire and never need to work another day in your life which was my stipulation to ever retire!
A home is always costly! Even if paid off. Between property taxes, insurance, utilities and repairs a "paid off" home can still easily run you 65-70% of your cost with a mortgage. In other words paying off your mortgage is helpful, but many people still lose their homes in retirement
"Between property taxes, insurance, utilities and repairs a" You know, your apartment rent includes all of those because the landlord isn't going to pay them for you out his or her own pocket. YOUR RENT INCLUDES ALL OF THAT. Forever. You are going to pay the landlord's bills even when the apartment building is paid off and free and clear. Oh, the price of the apartment building tripled? You don't get a penny of it. The landlord gets it all.
Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. Compounding is the process of earning interest on your initial investment, as well as on the interest that investment earns. This means that over time, your investment can grow exponentially. So the earlier you start investing, the more time your investment has to grow through compounding.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; I am 60 years old, recently retired, and have approximately $650k in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
@@maryHenokNft Kudos on the effective execution of innovative ideas and tactics that lead to significant advancement. As I seek guidance from a trustworthy advisor, would you be willing to share details about the individual assisting you?
The decision on when to pick an Adviser is a very personal one. I take guidance from *Gertrude Margaret Quinto* to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Geoff - As a 2022 retiree at age 65, my wife & I exhibit all of your "10 Signs"... except the Mortgage. We still have a couple hundred $000 to go, but our monthly mortgage + escrow = $1,400, and our mort. rate is well under 3%. The equity on our home is 4X what we owe and, with no children, I doubt we'd ever get upside down on this large Phx property. I do like the idea of being mortgage-free, and when we do sell and downsize, we'll be paying cash. For now, I feel we're good, and we always have $ left over from our SS and my Annuity to where we never need to tap into our emerg. fund or nestegg. One more critical factor: It cannot be understated that you have a spouse (like mine) that shares your Budget disciplines & philosophies. Makes the retirement experience so much more stress-free! Maybe that could be a future video for you??
I always feel bad when I spend money on something I don't want or something cheap. I usually do without whatever the thing is that I want until I'm tired of doing without it. Then I break down and buy it. When I start using, that's when the endorphins kick in for me. It's not that I don't waste money sometimes or make an expensive mistake, my quantum frame for example, I've always been poor, so I tend to be a skinflint. But if I buy you a present, it's AWESOME. I'm not cheap in that way. Also I tip my waitstaff really good. They love me.
Regarding the need for a budget in retirement, can you address the maintenance expenses on keeping the investment in your house sustained or even growing. If you built your house 20/25 years ago and you have paid off you mortgage, there are significent expenses on the horizon. How to plan for these?
I set aside 2% of home value a year for maintenance and big ticket repairs like A/C or Roof replacement. Tracking your expenses over 5-10 years prior will give you a decent baseline to plan from.
I think we may, at least in some portions of the country, be at a place where renting may be as financially beneficial as owning your home. Taxes, homeowners insurance and maintenance costs have significantly increased over the past 5 years. For this of us who are single and looking at 25 years or less of life expectancy, downsizing to a 1-2 bedroom apartment may be a reasonable decision.
Many good points. But disagree on mortgage. Will have mortage >2 mio. USD in retirement. No problem. Debt is tax free. I invest the margin - and have the flex to put 100% in stocks. Made me a lot of money over the years. Also, the value of my housing increases around 4-6% year over time while my mortgage remains stable. No reason to give the bank money I can spend on myself. I understand "peace of mind" is important for some - but the cost is very, very high imho.
Great clip. I'd feel a lot better with eight digits rather than seven. Funny coincidence, I'm getting my CT scan today (echo yesterday). Yay for for NY Presby. Hang in there aorta and bicuspid valve.
Mortgage is one thing. Increasing property taxes and insurance premiums can be an issue even if you own your house free and clear. Then there's upkeep. It can be like an albatross around one's neck. You cannot afford to stay but you cannot move, either. I am a super minimalist. Own nothing. If something happens to change my circumstances, I do have several plan Bs.
I retired five years ago at age of 65. My wife who's younger than me is still working. Three years ago we refinanced our home, took $100K cash, added more money and bought a rental property all cash. That rental property has an income which higher than our mortgage and although the net doesn't cover our mortgage, we have 7 other properties like that one, all free and clear with a gross income of $12K a month. Nevertheless, we'll be paying off our mortgage in about 3.5 years...
Thank you for the tip on the book! I've worked long and hard and am on the cusp of retirement and intend for this to be an experience worth working for! Overall, I'm pretty healthy and look for any tips possible to keep it that way.
I have enough money. My parents are dead. I have no family. I don't have anywhere near the health I had when I was 20 years old. Getting old does suck.
The calcium score test is called a CAC test. A healthy retirement with lots of GO GO years requires a commitment to eat right and spend time walking, swimming, running, etc. to keep the body from literally falling apart. Most people have forgotten that after 35 years of life the human body has very little evolutionary reason for existing and we must scratch and claw and use our heads to slow the inevitable decline. I think a lot of people do nothing and they go much faster than their retirement savings. My rule is: Exercise long and easy twice a week to the point that it takes two days to fully recover, then repeat. This for me is done either walking or cycling. Be careful of cycling, it is a long way to the ground each time you crash. I crash all the time.
Reports say only 5% of income tax filers use the itemized deductions these days where before it was around 10%. The mortgage tax deduction doesn't help very many people in any case.
Everyone should do a calcium score over 50. Why would you not want to know your artery health, amazing health care providers either don’t know or care about them. And insurance companies are stupid.Rather than pay 100.00 for a calcium score they will pay 100s of thousands for a heart operation!! For that matter we should just pay on our own for the peace of mind, I did.
You said one thing that most people are going to skip. Get your doctor to do a FULL medical evaluation, as if you were going to be an astronaut. Doesn’t matter your age but get it now. It will give you a baseline for the rest of your life. It’s amazing how many times I’ve had a doctor say your numbers are off but you feel great. Knowing that your numbers have always been around there let’s you know you are OK, or not. Oh, be debt free at retirement and live on your income. I’ve been retired for 6 years now and we live on our social security income even though my 401(k) has enough in it to provide 110% of what I was making when I retired.. On the other hand I had to tell a doctor, who had $10 million in savings that based on his wife’s lifestyle they couldn’t afford to retire and he was 65. Yea, I was in. The retirement business.
You may not need to support adult children but you should be giving to charities or to those in need on a regular basis. It is good for your heart and psyche, too.
I question your comment that, for most people, their mortgage interest is a tax deduction. I would like to see some data on that. Since the tax law changes under the Trump Administration, don't more people take the standard deduction? That would tip the scale towards paying off the home mortgage.
Good content as always, but the idea that a paid off house gives you freedom is ancient history. I’m mid 50’s, and my mortgage is my lowest expense at this point. Property taxes, insurance and energy costs have long exceeded my mortgage. And you know what, they will continue to only go up. You are never free, try not paying your property taxes and see what happens to the home you “own”.
It's funny. I retired 2 years ago at 54. My house isn't paid for, but I have almost a million dollars of equity in it. The mortgage payment is right around 12% of our combined take home. We could sell our house and buy something cash. But the mortgage payment doesn't cost us any sleep and we love our home...I seriously could care less if it was paid off.
If you don't have Long Term Care insurance, you can lose it all in a very short time. Please consider this when you are younger and can afford it, otherwise 66% of you will incur some huge expenses at the worst possible time. Currently, national averages for assisted living are approaching $5500 per month, full on skilled nursing care $10,000 per month. Plan for it.
A mortgage is a tax deduction for the vast majority of people???? I thought that only 20% itemize now that the standard deduction increased and local taxes is capped.
Our mortgage is at 2.9% and my wife’s income counts as housing allowance, which means that we pay zero income tax on her income. The plan is to not pay off the mortgage early because her pension will also count as housing allowance. Does that sound like a solid plan?
I have a 2.87% interest rate so I'm no rush to pay off the mortgage even though I can. However, even if i do pay it off my ins. and taxes are $16,300 a year and rising fast. So, what's the point of paying it off?
I'm a single, 43-year-old mother who resides in Hamburg. If everything continues to go well for me, I intend to retire at age 50. I couldn't be happier right now than I am that I just bought my first house last month. I'm so happy that I made wise choices that altered my life forever.
Salutations, dude. At your age, you're doing extremely well. I'm 54 years old, and right now my finances are a mess. Any helpful advice would be greatly appreciated in helping to mold my life. I want to buy a home of my own.
It seems like I used the FIRE movement to manage my finances. Investigate it further by doing some research. With the help of a financial professional, they were then successful when investing in stocks, cryptocurrencies, and real estate.
I appreciate your advice. How can I get in touch with your Financial Advisor, if you don't mind? I am in severe need of financial aid.
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.
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.
Also considering investment planning, learning from a well experienced advisor is invaluable
That's right. I am a wife, mother of four and new grandmother, 28 years in Corporate America, retired recently at 57 after discovering the freedom investing could provide, been contributing to my portfolio since the pandemic in early 2020, and have grown a $250,000 savings account to almost 1 million, credits to my investment advisor.
@@Susanhartman.who is your advisor please, if you don't mind me asking?
'Izella Annette Anderson' maintains an online presence. Just make a simple search for her name online.
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 resume.
I’m 67 and did calcium score last week and it was 0 !! Yes health is everything, I go to gym 3 hours four days a week and I’m in best shape of my life. We paid off house,cars and have zero debt, it’s the best feeling waking up everyday owing no one. 🎉🎉💪
Well health isn’t everything if you are living on the side of the highway in a cardboard box
That's fantastic news! Congratulations on your excellent health and your commitment to fitness. Achieving a calcium score of 0 is a remarkable accomplishment and a testament to your dedication to maintaining a healthy lifestyle.
@@kellanhills1972I think that’s common knowledge. My sister is only 72 and her health is a mess. She actually has nothing to look forward to. She has a beautiful house and plenty of money. She never worked out, smoked heavily until she was 50. She survived cancer and her body is not doing well. Nothing can happen if you have poor health.
@@kellanhills1972 I would rather live in a box any day than have liver cancer and live in a 50 million dollar mansion. You can always pull your self up but you can’t heal yourself. I was referring to your normal everyday person, and yes your health is MOST important!!
Yeah, good for you. Maybe when I retire I'll go to the gym 3 hours a day 4 days a week and get back down to 185 pounds. You are one of the 10% that has that score at your age. But I will tell you friend, don't count your chickens before they hatch. Yesterday is a memory, tomorrow is a hope. You have today to live. So, LIVE!!
I still remember handing over the final $35k payment to the bank to pay off our home several years ago. It was indescribable, and our rate was well under 5% at the time. Didn't care. The simple peace of mind allowed me to retire very early and sleep very well regardless.
That must have been an incredibly satisfying moment, handing over that final payment and knowing that your home was truly yours, free and clear. Achieving that level of financial security and peace of mind is priceless, regardless of the interest rate.
now if we can continue to afford these insanely high property taxes and insurance.
On the bright side that’s more budget available for giving.
@@daveb-d4t I moved to Phoenix. My property tax is $1600/yr. I don't know if you consider that insane, but to me it's a good value. City gov here does an excellent job improving the city. I self-insure my house. A little scary but I slow flip my house so have remodel from the studs in and know how safe it is. I'm here all day everyday so hopefully could spot a problem. Natural disaster is a very low risk here. Worse case my house burns to the ground and I'd only have the lot to sell, but that's about $200k and I'd be OK. Most insurance claims are for things like lost person items, replacing fences blown down that were already falling apart and other small stuff really unrelated to losing an entire house. I don't see a lot of house fire here in Phoenix where the house is a total loss. So for me, I'll take the risk.
Mine just dropped below $40k …I’m at 2.75%. I’m paying extra and at some point I’ll just write the check.
Retired in 2008. Paid off my house just before I Retired. I have a pension, SS, and savings. Live modesty and spend less than my income. Now 78 and health is reasonable. Not perfect. Have hobbies and friends. Go to the library weekly. Have one adult son who will inherit. Overall live has more positives than negative. Satisfied.
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 precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been using a portfolio coach for more than two years, and I've made over $800,000
Mind if I ask you to recommend this particular coach you using their service?
Annette Marie Holt'' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for sharing, I must say, she appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.
In addition to your thorough financial list I offer this; being able to feel like you have enough. This can come from being financially secure, but also from keeping an attitude of not needing more than necessary. Couple this with gratitude for a comfortable life and you will find happiness.
Absolutely, finding contentment and satisfaction with what we have is a crucial aspect of financial well-being and overall happiness. It's not just about accumulating wealth or possessions but also about cultivating a mindset of sufficiency and gratitude.
1. 0:30 - "But how do you know?" Happiness is a choice.
2. "Success" is different for different people.
@@Jsfrog Those are questions that you will have to seek out answers on your own. No one can give you a better answer than you can find through experience, or gnosis.
@@Cubestone I didn't ask any questions. Those are statements. The first question is a quote from the video.
@@Jsfrog That's fine. It was difficult to discern your purpose in your post. Have a nice day.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Finding financial advisors like Marisa Breton Dollard 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 greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Marisa Breton Dollard up and send her a message. You've truly motivated me. God's blessings on you.
"The thrill of buying something," my wife likes to shop thrift stores for clothing gems. I was looking around in there one day and realized that everything that was donated gave someone excitement when they bought it, and now it's for sale for pennies on the dollar.
I just retired a couple weeks ago from the federal gov’t and I’m also a military retiree. By your account Jeff I should be in good shape and retired happy. Oh wait…I am VERY HAPPY IN RETIREMENT! My advice to others is to grab the golden ring as soon as you can…don’t wait!!! Life is too short!!!😊
Love it!
Great, our country has to deficit spend to fund your retirement.
@@kyleinpa5285 I was a public servant for 41 years…you’re welcome!
I'm in his same boat, with 3 fed govt pensions. Keep paying taxes...@@kyleinpa5285
Thank you for your service sir. I was Air Force 78-82🇺🇸
"The thrill of buying something," such dangerous words that can set you back decades in retirement.
Absolutely, the allure of impulse buying can have long-term consequences on your financial future, particularly when it comes to saving for retirement.
You should have good health insurance though the single best health provider is yourself. I’ve spent the last 23 years of my career in health care and learned that weight is the primary contributor to poor health, including knee and other ortho surgeries from being too heavy. My simple recommendation is age appropriate cardio, flexibility and resistance exercises with periodic lab work. Try to keep your BMI under 25 and your A1C (3 month blood glucose average) under 5.5 60% of adult Americans are pre-diabetic (Type II), which is an A1C between 5.7 to 6.4. 6.5 and above is clinically diabetic. When our maker created us, we were designed to move. Keep moving (exercise) and eat wisely.
10 Signs You Retired Well
1. Time to enjoy your retirement life
2. Loving the place you will be living in
3. Having a vision for your retired future
4. Your Home is paid off
5. In good health, for your age (Calcium Score)
6. You know your retirement expenses well and they are well managed (Using a budget - avoiding Cheap Creep)
7. You don't have to support others in retirement
8. You have good health insurance (the best health insurance you can afford)
9. You have an emergency fund (protecting the downside)
10. Your portfolio is in good standing (You have a secure income stream that exceed your spending)
You understand and execute your plan to achieve the maximum economic utility
Great Video Geoff...
Thanks!
Great video, Another factor to add is Do they spend a lot of time planning their financial future? The majority of people do not engage in planing for their future
Opting for an investment advisor is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 45% since Q2.
Thanks for replying, You seem to know much, How did you go about it and can you recommend an advisor like yours?
Sharon Ann Meny 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.
I just googled her now and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
Jeff, (apologize if I misspelled) I have watched for quite awhile. I care for my mom 24/7/365 and although I am not retirement "age" I invested well and had a substantial savings account. No debt, paid cash for vehicles & houses. Hope to sell my house (in a nice lake community) b/c caring for my mom, her property & my house has gotten a bit overwhelming. Please encourage seniors to have a fund for respite care. A day (or week) off would be fantastic. Just a thought. Be well & as always great information.
By your description you and her should have enough set aside for respite care. Be careful that you might not have healthy boundaries between you and your mother. You are not neglecting her if she pays for your respite.
Check with your department on aging for availability for respite care so you can avoid caregivers burnout.
@@debmoore629 Thank you, I will.
Live below your means is still relevant in retirement, at least in early retirement years.
Absolutely! Living below your means remains relevant even in retirement, especially during the early years of retirement.
I retired 22 years ago at 45. For the past 15 years my total spend has averaged $600/mo. Even with inflation that spend has remained as I just learned new ways to save money. I love it. In 3 years I'll take SS and my income will be $5800/mo. I'll be living in SE Asia then and expect my monthly spend to increase a lot, but probably just to $2400-3000. I'll have $530K cash too, so saving $2800/mo is a little bit silly. I'm seriously having to figure out things, lifestyle, that I would want which that income could provide. But yeah, still has to be within my means. It's a weird thing that for my whole life "within my means" meant not spending too much, but now it means not spending too little. I found it easier and more fun not spending too much. But I assume I'll adapt.
One of my dreams in life was to retire with enough income to give to causes I believe in, both through finances and time. I can do this, and it is my greatest joy as I hit my seventies.
That's absolutely wonderful to hear! Retirement isn't just about enjoying personal leisure time; it's also an opportunity to give back and make a positive impact in the world.
You can always give your time to causes you believe in retirement. Or starting now if you want.
Thanks Jeff. I am going to throw out one more concept that perhaps peeps in retirement should consider. PTSD after working for decades. No, I am not a career soldier but the simple fact of not working in heavy work or what not and then stop working. Took me a couple of years to deflate. Know where you are headed. 60 and doing fine after I got my head straight.
I agree. Took 2 years to readjust sleep patterns and wake up with no anxiety. Now life flows at a slower pace and I'm more at ease relaxing and taking my time with small projects. No guilt, no multi-tasking, just peace.
That's a valuable insight, and it's something many people may not consider when transitioning into retirement. The shift from a structured work environment to retirement can indeed bring about emotional and psychological adjustments.
Very good take! People would say the fellow looks younger now that he has retired. Stress gone.
Yes I stopped working 20 months ago. Occasionally get the guilts that I am no longer a “productive” member of society especially as u know I have skills that are in great demand and short supply.
Ruined my health working crazy hours and stress packed life.
Decompressing from the adrenal rush has been hard but yes after 20 months I can now sleep through the night, except when I have to get up and take an old man pee!
Hi Geoff - Just retired July 2023 but still a subscriber. I think you make many good points and appreciate the community service your channel provides.
My personality has always deviated from the norm a bit - one of those markers is an interest in philosophy (at this point most roll their eyes). Classical philosophy though was very practical - its purpose was to define the good life and how to live it. This is the elephant in the room in this video and many others. Without having thought about what is good and a good life is first we lack the top level purpose around which all these other planning tips should revolve and optimize efficiently together to be effective. The trick is indeed how we define living a good life. And the problem is we don't define it. This needs to be job #1 I feel.
I know this is too esoteric for many - retirement 'planning' is all about money. But to carry over this habit of non-thinking, that running-on-the-treadmill approach, from our productive years can easily spoil what should be a golden age. This may be why some return to work to give themselves purpose and combat boredom. Retirement is a major psychological shift. Knowing this ahead of time it might be easier to plan for and enjoy that transition. IOW our culture has trained us to be non-reflective almost animal level consumers. To have a good life in retirement or at all we need to relearn to be thoughtful.
On the question of whether or not to pay off your mortgage, my advice would be to absolutely do so. I'm not even retired yet, and I paid mine off 2 1/2 years ago. Until you've lived mortgage-free, you simply can't imagine the sense of peace, security, and satisfaction that comes with that achievment. It's like stepping out from under a cloud into the sunshine, and is one of the key elements that has made me confident in my plan to leave the rat race behind me this upcoming summer and start Phase III of life at 58. Do it!
As a 32 year old, my property taxes are almost half of my total house payment (taxes, insurance, mortgage). I just don’t understand people’s excitement for paying off their house cause I’ll still have about half the cost left in property taxes. Could you explain why you’d recommend this? I’m not saying you’re wrong, I just don’t understand it even though I’ve tried very hard to understand it. I just can’t imagine myself feeling any different when I only reduce my house payment by half (it’s not that big to begin with).
@@cody5596I’d like to see your exact numbers, and also where you are in the mortgage as far as the principal/interest breakdown. Either way, you save on the interest you’re paying on the mortgage. You can best do this by making extra principal-only payments. They don’t change your mortgage payment month to month, but it shortens the duration of the mortgage, and that’s when you really save the money. But you’re best off making the extra payments as early in the mortgage as possible for maximum effect. For example in the beginning the P&I might be 100/900, but at the end it will be reversed, 900/100. So your opportunity to save on interest isn’t as great. If you have your amortization schedule for your mortgage, you’ll see it in there.
It's wonderful to hear about your experience and the sense of peace and security that comes with being mortgage-free! Paying off your mortgage can indeed provide a significant sense of accomplishment and financial freedom.
Wow, my comment was deleted after a day.
I knew that feeling when I bought my 1-bedroom apartment in cash. Of course, this was years ago and much cheaper then. I was in my late 30s.
It was cheaper than the rent I paid for a studio apartment and it is in a better neighborhood.
From that point on, I was able to save much easily for retirement.
Best decision of my life to live small.
Always great content. I appreciate your lack of hype and sticking to the realities of retired life.
Super video. We are in our 70s. CAC score for wife is 0. Well worth getting it. I am 100% disabled as Vietnam vet affected by Agent Orange. I grew up on a dirt farm extremely poor. Now upper class according to Pew Research. My advice to anyone is to comprehend the fact any choice you make will have a consequence. No exception.
A great deal of stuff accumulated over a decades-long marriage? Friends of ours learned how to list & sell on online reselling sites & are having fun- several positives result: 1) ridding their home of excess stuff; 2) making extra $ to put toward household expenses; 3) engaging in an activity that keeps items from becoming landfill waste; 4) getting vintage treasures into the hands of people looking for them; and 5) they have a hobby they enjoy doing together & they even walk yard sales to source additional items.
Great list Jeff! Retired in 2022 just after I turned 58. My wife retired in 2017 at 54. I was treated like a king the 5 years I worked before retiring, now I’m just a kid playing too much so my wife keeps giving me To Do Lists 😂. My mother-in- law lives with us too and just discovered respite care which is great for multi generational households and caregivers. Retirement is great, more time with family, friends, new friends, new experiences and places to visit. Cheers!
Cheers!
Respite care? We are 65 each and wife’s Mom lives with us. Dementia running rampant 😢. Wife doing all she can to help her but the dementia is a bear to deal with.
Thank you Jeff. V helpful and reassuring when the rest of the world seems off the rails. Balancing the financial, emotional and physical advice is key.
We have no debt. Planning to retire in 11 months and 9 days at 65.
Congratulations on your upcoming retirement! Achieving a debt-free status is a significant milestone, and it's wonderful that you're approaching retirement with such financial stability.
In the last few years I have had various medical tests and also developed many conditions, some annoying, some I wold not know about without a test. Through this life experience, I have come to realize the truth of the following statement: As time goes on we may find we have many conditions we will die with, but not from.
I felt I retired well. Now my 94 year old mother is having chronic health issues. Now my life revolves around taking her to doctors visits and hospitalizations.
Honoring your parents is the first commandment with a promise.
I'll come back to this Video in a year & a half. Less than four months from Retirement & Six Months from an Extended Vacation in the Philippines. The Numbers look very good for Debt Retirement by the middle of 2025, delaying Social Security by Eight Months by drawing down my tiny 403b & then being at 102% of my Contract Pay for life. Leaving the Roth for Emergencies & putting using my Social Security for savings & travel.
My calcium score has been zero the last two tests (over 7 years). I went "plant-based" in my eating 12 years ago. Best decision ever.
Agree. Plant based is key to aging well.
Great video. You might add that you have faced and dealt with risks. Many of my friends will not look honestly at their homes and dealing with issues until it is a crisis.
Was always tracking spending and budget on paper. Love your excell budget.
We paid off our mortgage in our early 40s, game changer, saved and bought 2 rentals cash. Would never have been able t have what we have if we hadn't paid it off.
Life certainly doesn't let you only support yourself. There are always emergencies that crop up.
I retired well.
1. I can speak with members of my family and have good relations with my neighbors.
2. I enjoyed watching tomato plants sprout from seed yesterday.
3. I study a foreign language daily for free.
4. I am able to read great books. I buy used books so I don't have to make the trip to the library.
5. I check the one credit card I use and nothing is owing this morning.
6. I have a major dental bill coming this week, but I can handle it.
7. As I age, I realize that there are a lot of things that I don't know or understand and am happy that I can learn things on specific subjects by using the computer from at home to research on RUclips.
8. I look forward to my girl friend's daily visit.
Retired fully at 47 as I'd planned, debt free with modest homes but ample acreage and shop facilities (which I built). Roughly half my income is discretionary but my only interests are technical/mechanical/home renovation/building so the stuff I did for fun helped me retire young and makes my overhead modest. I carefully chose a low tax area zoned agricultural. The Air Force was my wisest move but would only have worked had I don't all the other things I did.
#10 was a very good point. Thanks Jeff - keep them coming.
Prior to retiring my goal was paying off my mortgage before retirement. Interest rate did not matter. I wanted as much money to remain in my pocket and minimize monthly debt beyond monthly utilities. One less burden to deal with. No regrets.
Thank you Mr Schmidt I did plan it that way!
Paid of a 30 year mortgage in ten years and invested our money for the next 18 years. Hubby and i are debt free and worth over $1 million. We can buy whatever we want, go anywhere we want. No worries.
There's one little thing that all you young self-appointed experts dont understand and wont until you get here.....and that is what happens to your body. At this point I have been retired 14 years, my assets and my income are larger than ever before and I am still accumulating. I have, moreover, accomplished all my life goals, most since I retired, and I live in a magnificent estate in a remote mountain valley that resembles paradise. What you dont understand is what happens to your body. What it feels like. Like other old folks, Ill just let it be a surprise for you........
the stress of a mortgage--even if low interest--can lead to lots of health problems. And to lots of anxiety
You don’t have money really if you have any debt. When debt free your money very powerful.
If you are sitting on the fence regarding his advice on getting calcium score, please get one. Six years ago when I was 70 I told my doctor I wanted to come off taking a prescribed statin for slightly high cholesterol. I’m a regular gym goer, avid tennis player and cyclist; have always passed stress tests with flying colors; eat very healthy. He said fine but told me about a calcium test first. Well when he called me with result it was 595 and not only should I not drop statin, I need to up dosage and consider aspirin therapy as well. At first this seemed like a death sentence but it has caused me to be even more health conscious as well as being thankful for each day. I have also read Attila’s book and highly recommend it. Added motivation to lower my ldl number as low as possible. One of my sons had the test and his number was slightly high. Some of this is just genetic, even if you think you are extremely fit and eat healthy.
I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year.. Investment should always be on any creative man's heart for success in life
seek professionals support not some very cool and semi-knowledgeable guy on RUclips. Personally, I gather information on RUclips but verify with Stacey Macken . If it doesn't align with her report, I avoid getting involved. This way i've been able to save a lot of money while making a lot of money
She often interacts on facebook
Stacey Macken , that's her user name
I'm really fascinated about Investing and I'm lucky I saw these recommendations . I will look her up and drop a message, am really inspired. God bless you...
Stacey Macken is taking the level of trading from end goal of not just making money but really to be able to understand yourself and the money becoming the after-effect. Loaded with experience and maturity!
I paid my house off a few years ago. I’m now 53. I’ve been putting the extra money in savings. I save and my husband invests. That way we are both liquid and have plenty invested for retirement. It’s what works for us.
Definitely plan your future when you are young in your 40s. Budget and Saving are the Keys. It’s not how much you Made its how much you Save. Retire before 60s. Pensions. 7 figures 401 K. House Paid Off. Good Health insurance coverage. Paid for the kid educations. Life insurance and Long Term Care Insurance. Travel Yearly. That’s how we did it.
I loved that cheap video. Will revisit that one and this one again. Thank you!
Outstanding video Geoff❤
The “pay off the mortgage or not?” debate never makes sense to me. Look at an amortization schedule - the interest you are paying, especially for the first 15 years of a 30 year mortgage, is insane. People have this idea that it’s a flat 3.5% (or whatever) but it’s not even close - it’s more like 90% interest (literally) and it very slowly goes down. ALWAYS pay your house off as fast as you can!
I paid mine off as fast as I could. I initially took out a 15 year mortgage. I was fortunate enough to get a lot of overtime at my job for a few years. That enabled me to pay the house off in 6 years. A lot of money saved by paying it off early.
Good list. Seems like we are OK. Also, interesting info on the Calcium score test.
Lounging on the deck watching the day go by. Going for strolling walks every afternoon. Eating an essential optimal diet, milk, and taking care of my teeth. Automatically, paying all bills through the bank. Hiring a cook/housekeeper so I, the wife, also get to stop working when my husband does. With 5 pensions, all with COLA, why should I work if I don't wish to?
Late to the comments as I travel a lot now, which is awesome. My biggest issue is a feeling of "guilt" for doing so well while members of my family struggle. I made lots of sacrifices when younger, living far below my means, paying cash for cars, etc so that I could retire somewhat young (55) and travel on the cash I decided to save. Does anyone else struggle with this "guilt" of doing well? It seems odd.
Nope. I retired at 55 also. I don’t think any of my brothers and sisters care but if they did I wouldn’t give a hoot. Some people make so many bad financial choices when they are young that it’s all on them if they don’t have enough when they get older.
Having a home paid off is insufficient. Real estate property tax (REPT) increases each year in many locales. Home and auto insurance costs are skyrocketing nearly everywhere. The state where I live has recently frozen REPT for those 62 and older. SS benefits will be exempt from state taxes beginning this year. I have an 81 year old friend who retired at 55 and took SS benefits at 62. Sadly she is now running out of her retirement savings. Her home is filled with junk. She greatly laments her mistakes. My wife is learning a great deal from her situation. Though not yet retired, she is cutting her spending and decluttering the house. I do not like to spend money on worthless junk. I perform all the maintenance work on my cars to save $$$.I hate to spend money foolishly.
What a load of bull. I like my stuff and I’m not throwing it out. Thing is, I remember using that spanner on my first motorcycle and serving tea to my dear departed mother from that battered teapot. These things are my history.
Thanks Holy Schmidt.
You bet.
This is probably lame but I really feel sorry for friends my age,71, who are still working, I’ve been retired now six years and I love my life and don’t regret a single day.
I'm a 48-year-old doctor feeling burnt out from long hours and stress. I've never invested in a retirement portfolio because I've always believed the economy would collapse eventually. However, I plan to retire soon and I'm curious: If you had $120k to invest safely in stocks over 4-5 years to grow, how would you start?
I believe a healthy portfolio has 3 things, at the bare minimum: Exposure to ETFs for increased diversification, Exposure to assets that generate cash flow like dividend stocks, Exposure to market-leading tech.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I've been looking to get one, but have been kind of relaxed about it. Could you recommend your advis0r? I'll be happy to use some help.
acquire the books written by Benjamin Graham and do what he said 1. CYA by having at least $10% in Series E USA savings Bonds. 2. then 50/50 basis into no-load US stock index fund and a no-load US bond or mixed index fund. (As an option you could put 5 t0 10% into International/global index fund as well) Re-invest all dividends and gains, And then do nothing for 3 years. Don't even look. NO STRESS After 3 years, check them over then either continue or invest in other no-load index funds. but only if the math makes sense. Do not ever try to beat the market. Cost for this advice = free. You're welcome, signed "Licensed and very comfortably retired."
Don't retire this young. You still have many years of earning power and you can do something with your doctor skills that don't require long hours and stress.
Anyone at any age considering retirement without at least paying your home off, having zero debt, plenty of retirement income( pensions, 401k, 403b, IRA or roth account) and liquid savings to last at least 30 years after retiring should NOT retire. If you have to get a part-time job in retirement to survive then, to me, you are not prepared to retire. I retired at 60 only after all of that criteria was accomplished( paid off 2 homes) and sleep well every night knowing I didn't leave myself or my wife and family with the financial burden of my lack of retirement preparation. Slow and steady wins the race as long as you sacrifice and save for your and your families benefit. You can then retire and never need to work another day in your life which was my stipulation to ever retire!
A home is always costly! Even if paid off. Between property taxes, insurance, utilities and repairs a "paid off" home can still easily run you 65-70% of your cost with a mortgage. In other words paying off your mortgage is helpful, but many people still lose their homes in retirement
"Between property taxes, insurance, utilities and repairs a" You know, your apartment rent includes all of those because the landlord isn't going to pay them for you out his or her own pocket. YOUR RENT INCLUDES ALL OF THAT. Forever. You are going to pay the landlord's bills even when the apartment building is paid off and free and clear. Oh, the price of the apartment building tripled? You don't get a penny of it. The landlord gets it all.
I agree wholeheartedly.
We chose to pay off our house. To us the peace of mind was worth the opportunity cost. Your mileage may vary :)
Same. Paid it off after 11 years or so. Took the money for the payments and invested it in equities. Those have skyrocketed over the decade or two!
For me as an avid skier, retirement allows me to have many times more time on the slopes.
Do not enter retirement with a mortgage...period!!
Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. Compounding is the process of earning interest on your initial investment, as well as on the interest that investment earns. This means that over time, your investment can grow exponentially. So the earlier you start investing, the more time your investment has to grow through compounding.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; I am 60 years old, recently retired, and have approximately $650k in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
@@maryHenokNft Kudos on the effective execution of innovative ideas and tactics that lead to significant advancement. As I seek guidance from a trustworthy advisor, would you be willing to share details about the individual assisting you?
The decision on when to pick an Adviser is a very personal one. I take guidance from *Gertrude Margaret Quinto* to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Geoff - As a 2022 retiree at age 65, my wife & I exhibit all of your "10 Signs"... except the Mortgage.
We still have a couple hundred $000 to go, but our monthly mortgage + escrow = $1,400, and our mort. rate is well under 3%. The equity on our home is 4X what we owe and, with no children, I doubt we'd ever get upside down on this large Phx property. I do like the idea of being mortgage-free, and when we do sell and downsize, we'll be paying cash. For now, I feel we're good, and we always have $ left over from our SS and my Annuity to where we never need to tap into our emerg. fund or nestegg.
One more critical factor: It cannot be understated that you have a spouse (like mine) that shares your Budget disciplines & philosophies. Makes the retirement experience so much more stress-free! Maybe that could be a future video for you??
Solid comprehensive review. Thank you
I always feel bad when I spend money on something I don't want or something cheap. I usually do without whatever the thing is that I want until I'm tired of doing without it. Then I break down and buy it. When I start using, that's when the endorphins kick in for me. It's not that I don't waste money sometimes or make an expensive mistake, my quantum frame for example, I've always been poor, so I tend to be a skinflint. But if I buy you a present, it's AWESOME. I'm not cheap in that way. Also I tip my waitstaff really good. They love me.
Regarding the need for a budget in retirement, can you address the maintenance expenses on keeping the investment in your house sustained or even growing. If you built your house 20/25 years ago and you have paid off you mortgage, there are significent expenses on the horizon. How to plan for these?
Certainly, maintaining and potentially improving your home in retirement is an important aspect to consider in your financial planning.
I set aside 2% of home value a year for maintenance and big ticket repairs like A/C or Roof replacement. Tracking your expenses over 5-10 years prior will give you a decent baseline to plan from.
I think we may, at least in some portions of the country, be at a place where renting may be as financially beneficial as owning your home. Taxes, homeowners insurance and maintenance costs have significantly increased over the past 5 years. For this of us who are single and looking at 25 years or less of life expectancy, downsizing to a 1-2 bedroom apartment may be a reasonable decision.
Many good points. But disagree on mortgage. Will have mortage >2 mio. USD in retirement. No problem. Debt is tax free. I invest the margin - and have the flex to put 100% in stocks. Made me a lot of money over the years. Also, the value of my housing increases around 4-6% year over time while my mortgage remains stable. No reason to give the bank money I can spend on myself. I understand "peace of mind" is important for some - but the cost is very, very high imho.
8 years ago this May I retired. One day I went to work and the next day I didn't. It's just that simple.
Great clip. I'd feel a lot better with eight digits rather than seven. Funny coincidence, I'm getting my CT scan today (echo yesterday). Yay for for NY Presby. Hang in there aorta and bicuspid valve.
Mortgage is one thing. Increasing property taxes and insurance premiums can be an issue even if you own your house free and clear. Then there's upkeep. It can be like an albatross around one's neck. You cannot afford to stay but you cannot move, either. I am a super minimalist. Own nothing. If something happens to change my circumstances, I do have several plan Bs.
I retired five years ago at age of 65. My wife who's younger than me is still working. Three years ago we refinanced our home, took $100K cash, added more money and bought a rental property all cash. That rental property has an income which higher than our mortgage and although the net doesn't cover our mortgage, we have 7 other properties like that one, all free and clear with a gross income of $12K a month. Nevertheless, we'll be paying off our mortgage in about 3.5 years...
For the last 30 years when I got the desire to buy something I bought a GIC. Looked after the desire and cost nothing!
Thank you for the tip on the book! I've worked long and hard and am on the cusp of retirement and intend for this to be an experience worth working for! Overall, I'm pretty healthy and look for any tips possible to keep it that way.
Well said
CAC Score, nice!
I have enough money. My parents are dead. I have no family. I don't have anywhere near the health I had when I was 20 years old. Getting old does suck.
Sir please drinking 🍸 olive oil every single day for life s and knowledge is powerful enough and wisdoms okay sounds good 👍 👌
The calcium score test is called a CAC test. A healthy retirement with lots of GO GO years requires a commitment to eat right and spend time walking, swimming, running, etc. to keep the body from literally falling apart. Most people have forgotten that after 35 years of life the human body has very little evolutionary reason for existing and we must scratch and claw and use our heads to slow the inevitable decline. I think a lot of people do nothing and they go much faster than their retirement savings. My rule is: Exercise long and easy twice a week to the point that it takes two days to fully recover, then repeat. This for me is done either walking or cycling. Be careful of cycling, it is a long way to the ground each time you crash. I crash all the time.
Reports say only 5% of income tax filers use the itemized deductions these days where before it was around 10%. The mortgage tax deduction doesn't help very many people in any case.
Everyone should do a calcium score over 50. Why would you not want to know your artery health, amazing health care providers either don’t know or care about them. And insurance companies are stupid.Rather than pay 100.00 for a calcium score they will pay 100s of thousands for a heart operation!! For that matter we should just pay on our own for the peace of mind, I did.
Very few retirees itemize. Moreover, interest income is taxable
You said one thing that most people are going to skip. Get your doctor to do a FULL medical evaluation, as if you were going to be an astronaut. Doesn’t matter your age but get it now. It will give you a baseline for the rest of your life. It’s amazing how many times I’ve had a doctor say your numbers are off but you feel great. Knowing that your numbers have always been around there let’s you know you are OK, or not.
Oh, be debt free at retirement and live on your income. I’ve been retired for 6 years now and we live on our social security income even though my 401(k) has enough in it to provide 110% of what I was making when I retired..
On the other hand I had to tell a doctor, who had $10 million in savings that based on his wife’s lifestyle they couldn’t afford to retire and he was 65. Yea, I was in. The retirement business.
Yes. I have 11 months to my 2.99 mortgage vs 5% CD. I plan to pay it off due to the peace of mind.
I'm having my CT calcium score test on Monday for the same reasons you mentioned!
I do not want to know. Score will mean eating salads or being rushed into surgery.
@@susancook1448 I agree with you. You cannot reduce calcium already in your body and it gives you something else to worry about.
You may not need to support adult children but you should be giving to charities or to those in need on a regular basis. It is good for your heart and psyche, too.
The mortgage is the biggest thing
I question your comment that, for most people, their mortgage interest is a tax deduction. I would like to see some data on that. Since the tax law changes under the Trump Administration, don't more people take the standard deduction? That would tip the scale towards paying off the home mortgage.
Good content as always, but the idea that a paid off house gives you freedom is ancient history. I’m mid 50’s, and my mortgage is my lowest expense at this point. Property taxes, insurance and energy costs have long exceeded my mortgage. And you know what, they will continue to only go up.
You are never free, try not paying your property taxes and see what happens to the home you “own”.
It's funny. I retired 2 years ago at 54. My house isn't paid for, but I have almost a million dollars of equity in it. The mortgage payment is right around 12% of our combined take home. We could sell our house and buy something cash. But the mortgage payment doesn't cost us any sleep and we love our home...I seriously could care less if it was paid off.
If you don't have Long Term Care insurance, you can lose it all in a very short time. Please consider this when you are younger and can afford it, otherwise 66% of you will incur some huge expenses at the worst possible time. Currently, national averages for assisted living are approaching $5500 per month, full on skilled nursing care $10,000 per month. Plan for it.
Even if your home is paid off,you still have property tax and insurance to deal with. Neither of which is going down. Imho
Type of thy sanctuary of thy whole piece of thy mind s
A mortgage is a tax deduction for the vast majority of people????
I thought that only 20% itemize now that the standard deduction increased and local taxes is capped.
Can I ask, what was the name of that book, “Outlive”?
Our mortgage is at 2.9% and my wife’s income counts as housing allowance, which means that we pay zero income tax on her income. The plan is to not pay off the mortgage early because her pension will also count as housing allowance. Does that sound like a solid plan?
I have a 2.87% interest rate so I'm no rush to pay off the mortgage even though I can. However, even if i do pay it off my ins. and taxes are $16,300 a year and rising fast. So, what's the point of paying it off?