10 Unexpected RETIREMENT Facts No One Tells You!
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- Опубликовано: 22 май 2024
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As a retirement professional, I've devoted countless hours to retirement planning and engaging with retirees. Through these conversations, I've uncovered several unexpected challenges that many wish they had known about before retiring. In today's episode, I'll reveal the top ten retirement surprises and offer practical advice on how you can effectively prepare for them.
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ABOUT ME
I’ve always been passionate about personal finance, investing, real estate, and helping people find the freedom to live their life with purpose. But when my dad died in 2015, I tried to help my Mom find an advisor to sort out her finances. Instead of a helping hand, I found an industry of financial advisors dominated by glorified salespeople working on commission - pushing products that were not in my mother’s best interest. Or advisors with minimums that shut-out all but the ultra wealthy. Disappointed with the options, I took matters into my own hands and launched Foundry Financial, a wealth management firm with transparent pricing that specializes in helping provide clarity around money - so you have the confidence to make smart decisions.My goal is to help a million people retire without worry!
📅 THE BASICS OF RETIREMENT PLANNING
Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our goal is to help people master retirement and retire without worry.
Step 1: Know when to start retirement planning. When should you start retirement planning? The earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning. Even if you haven’t so much as considered retirement, don’t feel like your ship has sailed. Every dollar you can save now will be much appreciated later. Strategically investing could mean you won't be playing catch-up for long.
Step 2: Figure out how much money you need to retire, The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.
Step 3: Prioritize your financial goals. Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund.Generally, you should aim to save for retirement at the same time you're building your emergency fund - especially if you have an employer retirement plan that matches any portion of your contributions.
Step 4: Choose the best retirement plan for youA cornerstone of retirement planning is determining not only how much to save, but also asset allocation. It can make a massive difference in your retirement plan.
Step 5: Select your retirement investments. Retirement accounts provide access to a range of investments, including stocks, bonds and mutual funds. Determining the right mix of investments depends on how long you have until you need the money and how comfortable you are with risk. It’s often helpful to talk with an adviser to discover the right mix of stocks and bonds.
❣ SPONSORED No, this video was not sponsored.
⚠️ "DISCLAIMER:⚠️This is not financial or investment advice. This Channel is meant for EDUCATIONAL AND ENTERTAINMENT PURPOSE only. None of this is meant to be construed as investment advice, it's for entertainment purposes only. #retirementplanning #retirement #passiveincome
Did I mess any retirement surprises?
I’m 79 next month, retired twenty years.
People don’t realise how long retirement is and how much you can achieve in twenty years. In your first twenty years you probably learned to talk and graduated from college, why not try to match that in your last twenty years?
All the retirement videos seem to recommend getting your travel done in the first couple of years because after that it is terminal couch lock. If you exercise right and eat right you probably have a quarter of a century of good living in front of you. Make the most of it, we did and it has been fantastic.
Thanks for sharing! It’s an inspiration.
Yes but I bet you retired earlier as we all do. I retired at 49 and that was to late.
never had the travel bug. at 66, i realize i have been working since 12. done now. perfectly satisfied with friends, the dog, and a stack of newspapers and a pot 0' coffee.don't have a tv and am rarely bored. when it happens, i leash up the dog and get lost for an hour. win win.
I classify myself at being retired at 64, but I’m not. I bought a truck and no payments, I bought a 1/2 acre piece of land and no payments, then I bought a small tractor with some attachments and no payments, all debt free!! There was a price to pay and it’s called motivation, determination and and sacrifice!!
The irony of it all is that the Covid-19’s lockdown helped prepare my husband and me for our retirement. We learned how to live together 100% of the time, negotiating our various roles. Also, I retired from teaching last June 2023. I spent the years before reading books about retirement, investigating what I could do with my time once I didn’t have a full time career. I am currently volunteering at an animal shelter. It gets me out of the house and into a new social environment.
Excellent talk! Retired at 63 y/o and coming up on 68 y/o. Healthier and happier than when I retired! Don’t miss out on a happier life if you can!
I’m thinking if you can’t afford the cost of a broken water heater, you probably shouldn’t be thinking about retirement.
Probably should start doing some backwards-planning for it tho, especially if they can't afford a water heater.
👆👆
I think people typically don't "shop" for major appliances often enough to see what the prices are today. the "I remember when a good water heater was ...."are long gone. And they don't seem to last quite as long as they did and they cost way more to repair. but yeah that's what emergency funds are for...System repairs on an aging house. I doubt anyone thought a new roof would cost $30,000 depending on the home.
Fantastic video and right on point! I retired 5 months ago and have been going through just about everything you mentioned. I knew I would have a hard time spending so several years before I retired, I opened an account to hold money just for travel. That's its only purpose: FUN. And I don't need that money for anything else. Even then I am having a hard time spending it. So for me that is the hardest thing to adjust to. Also, many of us are solo in our retirement and do not have anyone else to split the bills with, two can live cheaper than one and all that. Blessing or a curse I suppose but it is very different when you have to foot every bill yourself. But, I am looking forward to those happy years all the studies say are coming. 🙂
Thanks, Ginger. I love the idea of having a savings account for fun! Enjoy your retirement!
I cannot more highly recommend "Victory Lap Retirement," an excellent book detailing the many ways to transition out of the workforce at your own pace.
Something I realized watching this video. When younger you could make repairs yourself to save money. As you age you may not be able to do all those repairs and have to pay retail labor prices that you weren’t ever used to so the price shock is even more so.
Great insight. I’ve been busier and had to hire our repairs I used to do…it’s hard to swallow.
I used to work Full Time w Absurd amounts of OT? Was always tired. This yr I am,working Part-time, turning down OT And as,Spring nears,am thinking of Retiring. Close Life instead of Money?
Great info! Thank you!
This is a great video Kevin and thank you. I'm newly retired and into my 4th month. I'm working on....through baby steps....leaving it all on the table so no regrets wishing I would have done this...or done that. Thanks again!
Great video, insightful, and meaningful!
Thanks!
Great video!!! Thank you
Thank you!
I'm retiring at the end of August & taking my State Pension. I'll clean out my Apartment, distribute most of my Stuff to Relatives, keep about four to five boxes of keepsakes. My Reward is a Six Month Tropical Vacation in the Philippines starting in mid-October 2024... At that point... I'll either come back to the US and take a Federal Job with Insurance, OR settle in somewhere in the Tropics, possibly with some type of Digital Nomad work.
Enjoy!
I am thinking of doing very much the same thing taking retirement having a year to just decompress and travel to some of the places I have put off before I get too old and then if need be or desired possibly come back into the workforce.
I am a very young 55 but I also can see how the stress of my current job is very quickly burning me out.
Betcha don’t come back! Enjoy!
Well done Kevin.
Your videos are spot on and well done.
Cheers
Thank you, I appreciate that.
Ditto. I find your delivery honest.
BTW, reality checks are sobering. The inflation example is always food for thought.
Thank you
Ah, I believe the depression type feelings doesn't Just come from leaving work and that... You're getting older, Weaker and hurting more, Closer to suffering and death.. And friends/family of yours are getting sicker Or passing away
That’s true, but there’s something about quitting work that seems to accelerate it in some people.
Your nailing it as the mind is talking more than ever to us. I recommend if you have a passion on your ♥....go for it!💪💪👍👍🙏🙏🙏🙏
I’m 5 years away but great video and I’ve watched a bunch of them.
Thanks, Mark!
Thanks for your videos Kevin! A lot of good points.. For me, I think my happiest ages were 26 (I wasn't thrilled with my first job) and 61 (I retired at 50 so this is earlier than for some people). No depression for me, but I did have some periods of stress (when I was happy and was just too much in my own head).
Thanks, Doug! I always struggle with being in my own head and missing the moment.
Retired 18 months ago and agree on these and would add another, which Is the importance and complexity of tax planning on future cash flows, e.g., RMDs, gift taxes, IRMAA, etc.
Thanks, Mike! You’re right. I guess I glossed over those because I talk about that a lot in other videos, but that’s a huge thing people wish they’d understood.
I associate with people who no one elses wants due to them having serious problems and issues I am dreading retirement associating with these people
It doesn't cost nearly as much to retire than you think.
Assuming health okay?
''retirement is a major life reorientation...''
not for all of us. college educated, but ditched the world of ties
to have a one man landscaping shop for 35 years. paid cash for a colo house.
retiring to off grid, raw land in TN this summer. realized i had eunf 5
years ago when my partner died. no kids, outlived my family.
pretty much stopped working 5 years ago. had time for me and not others.
walked right into retirement. only 2 real changes were no more alarm clock and
made all appts. for, ''after 10.00''. cashed out so i don't worry about ''the market''.
have more than enuf to see me to the end. when i take ss, it will be ''government annuity gravy''.
Right on ! We are getting out this year in our 50s. We have spent the last 3 years doing all the upgrades we wanted/needed in the house. So no large new expenses should come up in the first several years. Also replaced our 17 and 19 year old vehicles with newer ones that will last us a long time and may be the last cars we ever buy, who knows? ! We have our trips planned out through 2030 ! Have made new friends that are retired themselves so we will have a good pool of people to do things with when we want and bounce off each other. Going on ACA for most years until medicare. Looks like in our first few years medical insurance will cost us about 150-300 a month with the income we expect to have. Also tax planning for the future. We plan to continue to pull down on IRAs at rates we may not need after SS kicks in just to reduce those accounts a little and put the money in CD ladders or other after tax mutual funds, etc. That way we will not have MASSIVE tax liabilities from RMDs and or with what we leave to anyone. As you say. It takes some planning and thought, maybe even a trial run to reset the groove of your life for and in retirement.
50's plan on 2 more cars. Plan on your insurance company dropping coverage IF your roof hits 15 years or so. I might be in decent shape but they might make you replace it or drop you as a customer if you don't. Or your insurer might decide to leave the state and the next one says we won't insure you unless you put on a new roof. Things like that never used to happen.
The big surprise for me was Estimated Taxes. No one warned me that I'd be doing taxes five times a year. (The four quarters plus the final 1040.) Then you get to meet Schedule AI because your income unevenly distributed, but the IRS wants taxes paid in equal installments unless you can prove you get paid unequally.
In early June I'll be doing taxes again, tax quarters are not always calendar quarters. 🙄
To me, retirement is about opportunity cost. With the start of the pandemic, I work from home, have tons of vacation and like my job just fine. I have lots of flexibility and don't have anything to retire "to", so what would I do with more time? May as well keep making money and improving my work skills until I can find a new passion that will take up my time in retirement - I'm sure as heck not going to just sit around.
Well said
This video is great. It stands out from other RUclips retirement talks. The presenter is very logical and to the point. It helped me a lot. Thank you!
I change my home & auto insurance when it goes up. It seems to go up every 6 months to a year.
It’s getting harder to shop carriers in some states like California and Florida as insurers pull out.
Another nice review!
Agree with the inflation discussion. Many people don’t realize how it devalues your money.
On the other hand it is very difficult to think in present and future dollars at the same time.
My recommendation for this is to keep everything in present dollars( those that adjust with in inflation). This includes Social Security and investments. SS does mostly keep up, and investments should keep up. On the other hand annuities won’t. Pensions vary. Most annuities need to be severely discounted by 50% or more for values 15 years out.
So if you have enough money in today’s dollars that will inflate, you should have enough in future dollars. We assume that portfolio growth will ONLY keep up with inflation(no real growth). For an annuity 15 years out we assume it is worth half in “real dollars”. So if you want a $1000 annuity payment 15 years out it will need to be paying $2000 at that point to have similar spending power.
Thank you. I think a surprising number of people don’t realize their annuity doesn’t have a COLA rider. And many pensions as well. It’s a big oversight in planning.
do long term care policies actually pay out?
Wow I've been saying Time = money is the biggest lie since I've been 20. Recently I could choose between a 3% salary increase or 5 extra vacation days... I chose 5 extra vacation days and most of my coworkers did too, because we actually discussed it with eachother. And I remember specifically saying......you can always earn more money, but you can't earn more time.
I really Enjoyed the first 17 years of my working life. The I couldn't find a way to continue my career or find a new interesting career. So now I am a laborer which is boring and at times demeaning but it pays almost the same amount of money as when I was a professional. ( all due to the first baby boomers retiring ahead of me who mostly performed factory jobs) My hope is to reignite some professional or skilled job in retirement or to start a one person business. Problem is I am spending so many hours working that I can't retrain and its hard to start paying for all those benefits and replace all that vacation time. ( 2 weeks plant shut down plus 3 to 4 weeks vacation a year) It is quit different from most people's life experience. Most people experience what I did when I was young when they were old and starting to grey. On the other hand the hard work keeps me in shape and I am healthier and sharper than many 45 to 50 years olds. What happened? I am just starting to slow down at 65. Hint, my grandparents lived for 90 to 95 years old and so did my parents. What do you do with yourself if you retire at least 30 to 35 years before you die?
You enjoy it and develop hobbies❤️
Wow, why would you not include home repairs / renovations and car repair / renewal into your budget? I am including 2% value of my home for repairs and upgrades and 10% for my car for repairs and renewal. This is the smart thing to do. Also account for any medical insurance. As I live in Canada, I just need to cover for prescription drugs, dental and ambulance so $200 CAD per month should be enough cover for couple
Inflation is an interesting phenomenon. We have, in retirement, just shifted what we spend money on. We have cut way back on going out to eat. We eat much healthier now as a result. We also cut out alcohol, no wine or beer, unless we go out to eat.
We raised our insurance deductibles to help offset a little for higher premiums.
Find a hobby! It’s a marriage saver. You still need to be independent and have activities that are truly yours.
@Kevin Lum
Check the title. It says "Facts No Tells You!"
I think you are missing a word.
Thanks, Frank! I’ll hire you as my editor. :)
Inflation would increase for Americans above 3% because of decoupling-from-China and import tax strategies by your government, imports will be much more expensive as costs from products would skyrocket moving ahead.
''retirement, as you know, isn't just a lengthy vacation.''
then you are not doing it right...
Some people don’t have enough $$$ to retire 😂
Number 3 graphic - " more expensive " ?
Yeah, I know. Our editor made a mistake and I missed it when editing the mistakes. Drives me nuts.
Lol I'd wager the Costco hotdog will be $1.50 in 20 yrs
Haha. You’re probably right.
😂😂
Is it worth to move to a State with no state tax?
It should factor, but I wouldn’t be driven by only that factor.
Typically tax dollars come from other fee, higher sales tax , or a sales tax on groceries as well as hard goods., possibly higher user fees , possibly even high property taxes. it's a balancing act. You'd have to look at your total tax burden even being one county over can cost or save you money if one county applies a local sales tax and the other one doesn't.
So far i have worked 44 years maybe 3 more to go
41 for me and 6 more to go
I did 41 years and DONE.
I wish I retired sooner, at 58 or 59. Sooner is better for travel while young enough to.
What age did you retire?
Great advice. I am planning to retire in about a year just for that reason there are many places I would like to go and the way I'd like to travel there is rougher than I think I want to be doing at 65
If my homeowners insurance more than doubled I would look for another insurance company.
Did you say your homeowners went from $1,400 to $3,600 in one year?
I actually find that hard to believe but if you say so.
He might be in Florida....there's horrible stuff going on down here regarding homeowners insurance.
@@danielhuntington2116That’s insane! I would want to leave the state
@@calvinreichelderfer7989 Many are leaving....butttt...being replaced by even more people (FL # 1 in current state growth)....annnd the new ones coming in many cases have deeper pockets than the ones leaving!
It’s happening in Northern California.
@@kel3678 Does it affect the sanctuary cities too?
Retire overseas. The US is a good place to earn money, but not a good place for retirement.
Social Security is going to be fine 20 years from now…? I thought it was already bankrupt…? How is that gonna work?
They have 60 billion for Ukraine, they'll have it for SS
Well, I'm 55 and fully retired for some years now. When I had my 21st birthday my mother told me to start planning my retirement then. Seemed ridiculous at the time but I took her advice and started my investment journey. Its had ups and downs but our income per year now is more than 100K and we live pretty well. A new car every 5 years, private health insurance and two overseas trips a year plus we also have enough to help out the kids with their mortgages. No govt pension of course. The secret, if there is any, is to start early to get the benefit of compounding. I started working early with Cynthia McClure Alexander early and today I am happily retired .
Yep save as early as you comfortably can. New car ever 5 years huh good on you.
Retirement seems SO BORING.