Stop Calculating Retirement Expenses Wrong (Do This Instead)

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  • Опубликовано: 25 ноя 2024

Комментарии • 188

  • @onedegreeadvisors
    @onedegreeadvisors  Месяц назад +5

    **WARNING** There has been an increase in bots and spammers commenting on our videos. Sometimes the interactions may look real, but are easily identified by commenters promising high returns or promoting other 'advisors'. Please report these comments if you see them so we can keep our community safe from these scams. I will never try to contact you; you can only get in touch with me via the link in the description of the videos.

  • @KarenDuncan-o5s
    @KarenDuncan-o5s 3 дня назад +248

    I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $120k in a savings account that I want to invest in a non-retirement account. Where would you invest this as of now?

    • @IngoKociper
      @IngoKociper 3 дня назад

      Look up, dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, you should work with a financial advisor to help set up a well-structured portfolio.

    • @FostersCapones
      @FostersCapones 3 дня назад

      @@IngoKociper I agree. Based on personal experience working with a financial advisor, I currently have $800k in a well-diversified portfolìo that has experienced exponential growth from when I started. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.

    • @KarenDuncan-o5s
      @KarenDuncan-o5s 3 дня назад

      @@FostersCapones Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.

    • @FostersCapones
      @FostersCapones 3 дня назад

      @@KarenDuncan-o5s The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.

    • @KarenDuncan-o5s
      @KarenDuncan-o5s 3 дня назад

      @@FostersCapones Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

  • @Aarrenrhonda3
    @Aarrenrhonda3 3 дня назад +316

    As a soon retiree, keeping my 401k on course after a rocky 2022 is top priority. I have been reading of lnvestors making up to 250k ROI in this current crashing market, any recommendations to scale up my ROI before retirement will be highly appreciated.

    • @Pconradsmith
      @Pconradsmith 3 дня назад +5

      The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.

    • @michaelschiemer3
      @michaelschiemer3 3 дня назад +4

      Having an lnvestment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K so far, that made it clear there's more to the market that we avg joes don't know

    • @CindyValenti
      @CindyValenti 3 дня назад +3

      @@michaelschiemer3 I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?

    • @michaelschiemer3
      @michaelschiemer3 3 дня назад +2

      I've shuffled through a few advisors in the past, but settled with Annette Christine Conte her service is exemplary. I'd suggest you research her further on your browser, sure you'll find her basic info.

    • @michaelschiemer3
      @michaelschiemer3 22 часа назад +3

      Annette Christine Conte is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.

  • @Dave-sw2dm
    @Dave-sw2dm 3 месяца назад +57

    Going into retirement knowing you might have to reduce your spending one day is still better than continuing work.

    • @meibing4912
      @meibing4912 Месяц назад +2

      People are very adaptable and needs are reduced as you age. Far most get along well with what they have. However, I do find that many people think/imagine they can continue their current lifestyle into retirement in spite of their small(-ish) savings. People need to be much more realistic about finances.

  • @Riggsnic_co
    @Riggsnic_co Месяц назад +115

    Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

    • @Crystal__sage-b7k
      @Crystal__sage-b7k Месяц назад

      True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.

    • @Nicole_Andys
      @Nicole_Andys Месяц назад +1

      Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.

    • @GavinRay_q9x
      @GavinRay_q9x Месяц назад

      please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?

    • @Nicole_Andys
      @Nicole_Andys Месяц назад

      Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

    • @GavinRay_q9x
      @GavinRay_q9x Месяц назад

      I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip

  • @jackwalfoort8419
    @jackwalfoort8419 Месяц назад +5

    This was my experience. Way underestimated "unexpected ezpenses". Just paid $1400 for a broken tooth. Something comes up every month. Car repair , appliance dies. I would budget $1000 a mo th for random expenses.

  • @DanteInfernski22
    @DanteInfernski22 2 месяца назад +4

    The best way is to start with current after tax income. Whether the mortgage is paid, the kids move out or whatever else happens, it is what they are used to having.

  • @Paul-GrnHil
    @Paul-GrnHil Месяц назад +6

    Estimating expenses is easy. I don’t know about most folks but I charge everything on my credit card and pay it off each month. I might hit an ATM every month. Add up your credit card, ATM and any other bills you might have and you have a budget. It’s unlikely these expenses will go down in retirement and you might want to add in some extra travel and leisure expenses, especially for the first 5-6 years of your go-go retirement phase. Then add in medical expenses that will no longer be covered from their employer plan.

  • @user-od9iz9cv1w
    @user-od9iz9cv1w Месяц назад +7

    We started keeping track of where the money goes long before we retired. It wasn't a budget, it was a record. Putting all variable expenses on visa makes it easy. Groceries, liquor eating out and fun stuff was far more than we could ever have guessed. After checking this now and then we got some pretty good estimates. Everything got adjusted when we retired. The work oriented stuff went down.... gas, lunch, drycleaning etc. And we added big categories for retirement travel. In reality we hid in the house avoiding COVID, but that's another adjustment. I recommend that people do this early. When you see how much you spend you kind of do a cost benefit analysis. What do I get out of that cable TV bill?

    • @nanticokeroads8966
      @nanticokeroads8966 Месяц назад +1

      Five years before retirement I did a spreadsheet for each year with monthly expenses for housing, groceries, electric, internet/cable, autos (maintenance/ins), dinning out,
      ect, then totaled each month. At the end of the year this gave me good idea of what I spent, and which months were the most costly like when ins, taxes were paid. After five years it also showed how much things increased year over year. What ever you do don't wait until retirement to start figuring it. If you think you know how much you need try living on it for a few months before you tetire.

    • @paulclough8541
      @paulclough8541 2 дня назад +1

      I started this 4 years before retirement and have continued in retirement for 16 years. I find that this is the most accurate way to do it. It also alerts you to expenses that you can cut out or reduce.

    • @user-od9iz9cv1w
      @user-od9iz9cv1w 2 дня назад

      @@paulclough8541Good stuff. People avoid budgets. This just full transparency.

  • @xlavahott4547
    @xlavahott4547 2 месяца назад +4

    The answer to all financial and retirement questions is always "It depends".

  • @robertnelson4460
    @robertnelson4460 7 дней назад +1

    Retired doesn't mean stop working, it means, "change your lifestyle to grow old with grace and dignity"
    You may still choose to work, but you choose to work because you want to.

  • @sixstringsdaddy2477
    @sixstringsdaddy2477 2 месяца назад +19

    I don't get it, you're doing exactly what you said doesn't work, look at what you spend today and decide what will stay/disappear/add in retirement. I got absolutely no value out of this video.

  • @elinsd
    @elinsd 3 месяца назад +11

    I became debt free and own my house free and clear before retirement. I’ve been spending based on a sustainable percentage of my good amount of savings and not what I want to spend which could run into over spending. I’ve been sleeping well at night and feeling safe and comfortable.

  • @FlorentGulliver
    @FlorentGulliver 2 месяца назад +92

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

    • @FlorentGulliver
      @FlorentGulliver 2 месяца назад

      @CarolineBrooklyn That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well..

    • @FernandoBowen-78
      @FernandoBowen-78 2 месяца назад

      @CarolineBrooklyn The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?

    • @FlorentGulliver
      @FlorentGulliver 2 месяца назад

      @CarolineBrooklyn I will give this a look, thanks a bunch for sharing.

    • @luckymeat3050
      @luckymeat3050 2 месяца назад +4

      Scammer

    • @1stamendmentmedia464
      @1stamendmentmedia464 2 месяца назад +5

      Do not fall for any scammers offering financial advice or recommending financial advisors in the comment section of RUclips.

  • @freedivemd9366
    @freedivemd9366 Месяц назад +8

    I don't know why people think living in retirement will be cheaper. Think about it - as you are working and living and going about your daily life you spend money on whatever it is that you spend on. Then one day you retire - but you are still going to go about living your daily life spending the same living expenses. Why would it suddenly be any less? If fact, while working, you may have had a really good deal on health insurance (and not even realized how good a deal it was). Private insurance or medicare is going to cost you even more!

    • @surpriserakins9067
      @surpriserakins9067 Месяц назад +1

      Reduced travel costs due to not commuting, no need to buy work clothes etc

    • @briand4000
      @briand4000 Месяц назад +1

      Valid points. Remember the three phases: go-go, slow-go and no-go. Yes, spending will likely be equivalent or higher the first third of the retirement. Then, the traveling bug wanes, the energy levels diminish and it costs very little to watch TV and mow the lawn. The no-go years can bleed money due to medical so it's a curve, not a straight line.

    • @johnbrown1851
      @johnbrown1851 Месяц назад

      Plus, you have more free time to spend money....

  • @claireNymans
    @claireNymans 2 месяца назад +101

    Man, this video just hit different! Been sitting on my $332k emergency fund, and still can’t figure out how to kickstart my investments. Retirement expenses feel like I’m just doing mental gymnastics! I guess I’ll keep tweaking the spreadsheet until I strike gold, or maybe I just need to stop overthinking and get in the game. 🤷‍♂ Anyone else procrastinating on this?

    • @CharlotteJacobsons
      @CharlotteJacobsons 2 месяца назад +3

      Haha, I hear you! But sitting on $332k?! Bruh, inflation's loving that. I was in the same boat until I found an investment advisor who kicked me into gear. Honestly, stop DIY-ing everything-trust me, that advisor saved me from spreadsheet insanity.

    • @blissds-gi3mb
      @blissds-gi3mb 2 месяца назад

      Same boat, guys! I’ve got some cash to invest but seriously no idea where to even start with finding an advisor. Feels like it’s a total guessing game out there. Any pointers?

    • @CharlotteJacobsons
      @CharlotteJacobsons 2 месяца назад +5

      There are a handful of CFAs. I've experimented with a few over the past years, but I've stuck with Linda Aretha Reeves for some years now, and her performance has been consistently impressive. She’s known in her field, maybe check her out if you want someone reliable.

    • @claireNymans
      @claireNymans 2 месяца назад

      Just looked up Linda Aretha Reeves-she seems like EXACTLY what I’ve been searching for! Ready to make some moves now, thanks!

    • @MollyShorters
      @MollyShorters 2 месяца назад

      Watched Linda Aretha at a Bloomberg finance summit 4 years ago-her presentation was top-notch! Honestly, it’s no surprise she’s crushing it now.

  • @meibing4912
    @meibing4912 Месяц назад +1

    I look at how much money I had JAN 1 and DEC 31 and earned in a year. Subtract my savings (not needed in retirement). Neutralize housing. Do for the last 3 years to get my yearly baseline expense. Housing in retirement is then added (some tax advantages apply). Think this is rock solid and very easy to do. If your ends do not meet you will have to look at a more detailed budget to identify excess spending and adjust future life style and expenses as needed.

  • @daisyreinacher5022
    @daisyreinacher5022 3 месяца назад +15

    Our expenses didn’t go down at all. Medical, dental and travel made up for anything that could have been reduced.

    • @onedegreeadvisors
      @onedegreeadvisors  3 месяца назад +3

      This catches many retirees by surprise. Thanks for watching, Daisy!

  • @SidinPhilly
    @SidinPhilly Месяц назад +1

    We do not really need a budget but a tracking of past year expenses. Retirement means no contribution to degrees accounts and reduction of tax payments (esp by careful planning to reduce taxable income).

  • @douglastarvestad186
    @douglastarvestad186 Месяц назад +4

    I have a better idea. Download from your bank an entire year of your expenses. Take out expenses that you know will be gone such as savings expenses or maybe your mortgage. Add that up. 15 minutes done. What you spent in the last year is a good indicator of what you will spend next year. I am starting this 9 years before retiring. I put this figure next to my net income in a spreadsheet. Then add 2.5% for inflation put next, to your estimated income. Do annually to adjust and test. I have this out to 100 with adjustments for the first few years of heavy travel and later for slowing down, but then up again for higher healthcare and a retirement home. Kinda fun to do and as you check and adjust you will feel more confident on your nest egg and your cash flow. Remember, spreadsheets are your friend.

    • @kathrynherzog6784
      @kathrynherzog6784 25 дней назад

      This is what I’ve been doing for years now. It helped me be realistic about how much I should be budgeting for every day expenses. Now so meuf easier to think about what I might spend in the future.

    • @RockerProf
      @RockerProf 23 дня назад

      I did this for multiple years. My advice is to then take out the things you know you're not going to be spending money on, such as lunches at work or work clothes or gas to work, and then add in more money for medical expenses, because that's where the expenses increase. Travel is an entirely separate issue and should be treated as a separate line item. Because if worse comes to worse, nobody has to travel. And at a certain age, any travel allowances are going to be replaced by more medical expenses and home care

  • @DavidDLee
    @DavidDLee Месяц назад +2

    This looks very similar to budgeting. The only difference I see is the categorizing of certain current expenses.
    It still fails to account for big ticket items (cars, home improvements, maybe travel).
    Not impressive.

    • @onedegreeadvisors
      @onedegreeadvisors  Месяц назад

      Thanks for your feedback and thanks for watching! Backing into your living expenses based on actual spending is the objective. Generally, budgeting adds up small expenses (that most people tend to underestimate which is the problem). Additionally, certain expenses like payroll taxes and retirement savings would drop off once one retires. Big ticket items can absolutely be included in this calculation or as separate goals, e.g.,., saving for a home remodel. Happy retirement!

  • @Dave-sw2dm
    @Dave-sw2dm 3 месяца назад +11

    I buy everything I can on the credit card so it is pretty easy to se what and where I spend. Considering that I have been putting away 30% of my salary away because I have been debt free for the last 15 years.

    • @onedegreeadvisors
      @onedegreeadvisors  3 месяца назад

      Appreciate you watching!

    • @alcantwell
      @alcantwell 2 месяца назад

      Same here. It's a good way to record your expenses, plus you get rewards points, plus no interest charges if you always pay off your balance. I am retired now, but in my last few working years, I often was able to put away 40% of my earnings (self-employed so income varied month to month).

  • @SimonEllwood
    @SimonEllwood 6 дней назад

    I have a bank account so do not need to estimate anything I can just look at spending. My banking app can show my spending categorised.

  • @conniechapin9278
    @conniechapin9278 3 месяца назад +8

    I don't see that you have taken into account the go-go, slow-go, and no-go years in retirement. Or SS money starting. Both will change how much is needed from investments.

    • @onedegreeadvisors
      @onedegreeadvisors  3 месяца назад

      Hi Connie, this is to target initial retirement expenses (then it can be refined as spending changes). SS income and other sources of income would apply toward that expense target with the difference most likely coming from portfolio withdrawals for most people. Thanks for watching!

  • @roosenlodewijkwiggers4594
    @roosenlodewijkwiggers4594 2 месяца назад +12

    I am sorry, but your approach IS budgetting… I understand you want to pitch a new approach, but it is just more realistic budgetting.

  • @derfel6969
    @derfel6969 Месяц назад +1

    Expense delta is amplify by taxes too. A $1,000 delta is really more like a $1,250 in real withdrawal terms.

    • @onedegreeadvisors
      @onedegreeadvisors  28 дней назад

      True. Many miss that. Here's a video that addresses that issue.
      "62 with Pre-Tax Savings? Here's How to Slash Your Taxes" ruclips.net/video/5w5_e5wzzCE/видео.html

  • @steves3234
    @steves3234 3 месяца назад +1

    I'm budgeting to spend 30k less per year than my financial planner wants me to. And based on his advice I was told I would not run out of money.

  • @johnwietfeldt6238
    @johnwietfeldt6238 3 месяца назад +5

    This new method seems defective compared to just tracking your spending over time. It doesn’t seem to account for one time biggies like a new roof or sewer repair. Or you need a new car, or your health care costs if you or your spouse become I’ll or disabled. These one time costs occur and you will encounter them over time if you track your spending.

    • @onedegreeadvisors
      @onedegreeadvisors  3 месяца назад +2

      Great thought, John - It actually does because it's based on what you earn during working years (and use to pay for a new roof, repairs, etc.) The exception would be if you were gifted money and used that to pay for the new roof or repairs. In that case, you would need to add the gifted money into income/inflows. Remember, we are not saying not to track your expenses. For those who do it, it's great. Both methods combined and compared can add clarity. It's just that most people miss the exact things you are mentioning when tracking because they are thinking of what they pay on a regular basis and not those biggies! Thanks for watching!

  • @michaelbeall9677
    @michaelbeall9677 2 дня назад

    Am I wrong to think I want in retirement the same take home amount I receive now while I’m working?

  • @alisonlevy2273
    @alisonlevy2273 Месяц назад

    Great video once again. Your content is soooo relaxing. When is your big move?

  • @bruceanderson8179
    @bruceanderson8179 3 месяца назад +9

    It's the lack of having a budget prior to retirement that makes "estimating" a retirement budget inaccurate. We maintained a budget for decades, bascially using net earned income and living expenses. When we were 5 years out from our desired retirement age we used our actual expenses as a basis for retirement living expenses and we adjusted with each year's review of our progress toward our retirement goal. We did allow for inflationary pressures with a 3% inflation rate for general expenses and a 5% inflation rate for health insurance expenses. We also used our combined effective tax to determine what that liability would be seeing how that would now be coming 'out-of-pocket' as opposed to a reduction to pre-retirement gross income. We're 7 years retired now, and the result? Pretty much dead on with our projections. I suppose if you've haven't had a budget history prior to retirement the estimation of a retirement budget is subject to gross inaccuracies.

    • @onedegreeadvisors
      @onedegreeadvisors  3 месяца назад +1

      Yes, we see that making a difference in accuracy. Thanks for watching!

    • @j10001
      @j10001 3 месяца назад

      Nicely done. Congratulations!

    • @mjohnson1563
      @mjohnson1563 2 месяца назад +1

      Great comment. Many people don’t live on a budget, so the concept of suddenly having to live on one in retirement is a new learning experience. I think that’s how the 80% rule was probably derived. Oversimplified because most people aren’t doing what they should be pre-retirement as far as budgeting. Then they are faced with the “I’m living on a fixed income” stress. However, if you’ve budgeted along the way and know what you need and have, it’s planned, predictable, and manageable.

    • @robinbatts8498
      @robinbatts8498 2 месяца назад +1

      Thank you for this affirmation! We too have been maintaining a budget for nearly 30 years, and heading into retirement 1 Jan 2025.. we’ve also had a retirement budget mapped out for at least 15 years, finessing it over time as we’ve learned and planned more…. But there’s still that tiny bit of uncertainty heading into this next phase of life.. I feel encouraged!

  • @roosenlodewijkwiggers4594
    @roosenlodewijkwiggers4594 2 месяца назад +2

    Calling groceries ‘variable’ cost… I would not class it like that. You need it every day, the amount needed don’t change much over time, the price change, but that you factor in prediction the increase of price over time. 2% inflation is ofc not realistic, because it is never exactly that. My approach to cost analysis is to have bucket: necessary fixed costs (ie morgage/medicare), necessary variable cost, incidental variable cost and lastely chosen spending. This last bucket is what people underestimate, but it is also the bucket you do have influence on and you should get used to adjusting according to your cashflow in retirement.

  • @jefft9729
    @jefft9729 24 дня назад +1

    So you list the “fixed expenses.” But then how did you arrive at the couple’s variable expenses? What did you do differently from the two (inefficient/inaccurate) methods you described in the beginning?

    • @onedegreeadvisors
      @onedegreeadvisors  21 день назад +1

      Hi Jeff, At around 10:10 you can see how we back into the living expenses (instead of having to add them all up). Thanks for watching!

    • @jefft9729
      @jefft9729 20 дней назад

      @@onedegreeadvisors Thank you. I suppose the value of itemizing the variable expenses is, if a cutback in spending is needed, you would have a better handle on what to do. A lump sum variable amount is of relatively little value if you need to fine tune your spending.
      Best regards

  • @shaqisumari304
    @shaqisumari304 7 дней назад

    What is the inflation figures? 4-5% yoy

  • @howarddelfava
    @howarddelfava 15 дней назад

    I use a rewards credit card to pay for almost everything. I pay it off every month. That gives me an easy way to download actual expenses.

  • @rickstephan6707
    @rickstephan6707 3 месяца назад +2

    Lifelong personal finance software user here...allowed me to see all my expenses my whole adult life and - more importantly - prior to retirement at age 59.25.

    • @onedegreeadvisors
      @onedegreeadvisors  3 месяца назад

      Software programs certainly have made it easier for those who consistently use them. Thanks for watching!

    • @j10001
      @j10001 3 месяца назад +2

      Same! I have 29 years of data on my income and expenses in my financial software. I think it’s rare to find someone who has done this kind of record keeping, but it does help keep us honest!
      That said, I think the method in this video is great for most people, maybe even someone like me. Because all that really matters is how much you spend in total, which is to say the difference between how much you started with and how much you ended with. The specific categories don’t much matter unless you have reason to believe those categories will change in retirement, like the ones he breaks out in the pie chart.

    • @freedomlife3623
      @freedomlife3623 2 месяца назад

      @@j10001you beat me, I only tracked my income & expenses for 12 years.

  • @Rickmac22
    @Rickmac22 3 месяца назад +19

    Why is it that every financial advisor only sell fear? I've saved over 20% in 401k and investments, have 2 pensions, as well as my wife's pension, and proceeds from a business venture. This adds up to create an retirement income that is greater than our current income by 20-40% (this is without SS, acknowledging it's probably not going to survive), yet I have heard from every financial advisor that I should be fearful that we won't survive!?! Is this fear valid? OR do these advisors just want control of my (and your) retirement savings???

    • @onedegreeadvisors
      @onedegreeadvisors  3 месяца назад

      Hi Rick, I'm sorry that has been your experience. It sounds like you are doing great. There are many good quality advisors out there. Our purpose with our clients and viewers is to help maximize their return on life. No room for fear! - Anthony

    • @taylorism7787
      @taylorism7787 2 месяца назад +3

      Given the popularity of social security, there is no reason to think it won’t survive. Unlike during the 1980s, Congress has refused to modify it to to keep it in the black (despite the challenges of longer life expectancy and an aging population with more retirees), but social security “bankruptcy” would mean it would pay out 70% or so of expected inflation adjusted benefits. The idea that it would pay nothing is a widely held misconception and a scare tactic.

    • @Dennis-fs6zo
      @Dennis-fs6zo Месяц назад

      The more you save the more they make from your money.

    • @gwarlow
      @gwarlow 4 дня назад

      @@Dennis-fs6zo So, save nothing, don’t invest and reap the rewards when you retire? Great plan. 😂 Good luck with that! 😊

  • @pizza4me298
    @pizza4me298 25 дней назад

    I work out, to the penny, my monthly expenses every 3-4 months at the latest. I was forced out 2 to 3 years earlier than planned, at 60, so can't even collect yet. So I am being extremely frugal until 62 and then will take another hard look at how much I have left and decide if I need to start collecting social security. I am hoping that I can keep delaying until 67 to 70. It sucks, I thought I would have another few years to save, there just isn't much demand for older workers. I focus on exercise and diet rather than spending and travel. I can only hope for the best.

  • @KJFC388
    @KJFC388 Месяц назад +1

    The reason the 80% of your current salary rule exists is because you no longer pay FICA or contribute to a 401K when you retire

  • @BraxtonScott452
    @BraxtonScott452 3 месяца назад +1

    Retirement planning means preparing today for your future life so that you continue to meet all your goals and dreams independently.

  • @RealMuperSan
    @RealMuperSan 19 дней назад

    Where is their investment income on the spreadsheet? Things like dividends?

    • @onedegreeadvisors
      @onedegreeadvisors  18 дней назад

      If reinvesting divs and not spending, you wouldn't include under income for this objective. The opposite could be true: If they were withdrawing $1000 from a brokerage account each month, not all would likely be taxable, but they are living on that $1000, so it would be included. Hope that helps and thanks for watching!

  • @Particamuwowo
    @Particamuwowo Месяц назад +1

    Lately, I've been contemplating retirement, uncertain whether my 401(k) and IRA will ensure a secure future. I've also invested $800K in the stock market, experiencing fluctuations without substantial gains.

    • @KarenJ.Mancia
      @KarenJ.Mancia Месяц назад

      Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfOlio management

    • @Andreavince-v
      @Andreavince-v Месяц назад

      Opting for an invest-ment advisr 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.

    • @CharlesT.Foster
      @CharlesT.Foster Месяц назад

      Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?

    • @Andreavince-v
      @Andreavince-v Месяц назад

      I’m with Stacy Lynn Staples, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

    • @heatherj-o5j
      @heatherj-o5j Месяц назад

      Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.

  • @BobBanish
    @BobBanish Месяц назад +1

    I'm an English major that had trouble with math but a million dollar home at 3.5% interest for 30 yrs. the payment comes out to waaaaay more than $1350 per month. A quick google search shows a payment in excess of $4000 (P&I) per month. What am I missing here?

    • @AnonVideos
      @AnonVideos Месяц назад

      Taxes, insurance, special assessments, HOA fees etc. My P&I is about 40% of the total mortgage payment without an HOA!
      Realize taxes and insurance are going to be on the sales price, not the grandfathered price the previous owner paid. Here it will usually increase 3% per year with homestead exemption.

    • @onedegreeadvisors
      @onedegreeadvisors  28 дней назад

      The value of the home is $1m. Mortgage is considerably lower. Thanks for watching.

    • @theresaberna5488
      @theresaberna5488 12 дней назад

      They probably put down a considerable down payment.

  • @ohiopat
    @ohiopat 2 месяца назад +3

    They're good, chances of living past 85 are very slim.

    • @byronbuck1762
      @byronbuck1762 Месяц назад

      Nope. Better than 50% one of them lives longer

  • @iang4338
    @iang4338 Месяц назад +1

    Assume you put 15% in your 401K and pay 6% social security taxes. Doesn't this mean that you are already living off 79% of your income? I assume you do not pay social security tax when you retire and you will no longer save into your 401k..

  • @AllenJefferson-b1
    @AllenJefferson-b1 Час назад

    I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?

    • @EdisonNorman-b8b
      @EdisonNorman-b8b Час назад

      there are numerous intriguing stocks across various industries that might catch your attention, but it's not always advisable to act on every prediction. Therefore, I suggest that you work alongside a financial advisor who can help you determine the best times to buy or sell the shares or ETFs that you are interested in.

    • @jackson-rogers-h2m
      @jackson-rogers-h2m Час назад

      Since the beginning of my company, I have been in touch with a financial analyst. The problem with investing in trending stocks in today's volatile market is figuring out whether to buy or sell. This decision may sound simple, but it may be difficult. Since my portfolio has grown by more than $900k in only a single year, I have given my adviser the authority to choose entry and exit orders.

    • @AlexNelson-z4p
      @AlexNelson-z4p Час назад

      Your experience sounds fascinating. Would you be able to recommend a reliable advisor whom you have consulted with?

    • @jackson-rogers-h2m
      @jackson-rogers-h2m Час назад

      Sophie Lynn Carrabus , my financial advisor, is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field.

    • @AlexNelson-z4p
      @AlexNelson-z4p 58 минут назад

      Thanks, I just googled her and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.

  • @vallejoborncalihasbecomeal9022
    @vallejoborncalihasbecomeal9022 Месяц назад

    If you are living on a certain amount every year, why would it change just because you retire?

    • @onedegreeadvisors
      @onedegreeadvisors  Месяц назад

      Thanks for watching! Certain expenses like payroll taxes and retirement savings will drop off. Other items may drop off at some point like paying off a mortgage. Consider adding in expenses that may increase, if any.

    • @vallejoborncalihasbecomeal9022
      @vallejoborncalihasbecomeal9022 Месяц назад

      @onedegreeadvisors Granted but, if I'm spending 60k a year on living, why would I spend less than that when I retire? After retirement, my hobbies, travel, eating out, grandchildren, inflation, etc. tend to fill in the gap. After my retirement, I didn't realize a drop in my spending!

  • @alk672
    @alk672 2 месяца назад

    This high sensitivity to monthly expenses of the portfolio value projections is what makes me extremely skeptical of the very notion of retirement planning. Yes, it’s science and it’s art, with all the tax planning and ACA tax credits, but at the end of the day the entire tower is built on quicksand. Returns or inflation differ by 1% over the long term? Everything changes. Retired into a flat decade? You’re screwed.

  • @MichaelToub
    @MichaelToub Месяц назад

    Great Video!

  • @clevelog
    @clevelog 29 дней назад

    Thank you.

  • @BEAUTIFULDIANAFRANCIS
    @BEAUTIFULDIANAFRANCIS 3 месяца назад

    As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.

  • @meatman6660
    @meatman6660 2 месяца назад +1

    This is not easier.

  • @onlywenilaugh6589
    @onlywenilaugh6589 2 месяца назад

    95 is too high so probability would go way up if use a more realistic of 90

  • @bw5437
    @bw5437 3 месяца назад

    Do the Monte Carlo simulations take into consideration the probability of living as long as they projected. If you have a probability of living to 95 is 5% does that have any bearing or is 30 year retirement locked regardless of real life expectancy?

    • @j10001
      @j10001 3 месяца назад

      Excellent question! I’d like the software to at least have that option built in. But I’m guessing it doesn’t - that is, it probably just uses the 30 years. The Monte Carlo simulation is about market returns being up or down.

  • @billlittle1257
    @billlittle1257 2 месяца назад

    Where is the spreadsheet you used found?

  • @Robw1960
    @Robw1960 Месяц назад

    No accounting for SS income?

  • @LindaL.Fielder
    @LindaL.Fielder 2 месяца назад

    I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

    • @pauline-o2q
      @pauline-o2q 2 месяца назад

      Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!

    • @heatherj-o5j
      @heatherj-o5j 2 месяца назад

      Mind if I ask you to recommend this particular coach you using their service?

    • @SandraMoore78
      @SandraMoore78 2 месяца назад

      Jessica Lee Horst is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

    • @heatherj-o5j
      @heatherj-o5j 2 месяца назад

      She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.

  • @bradh9800
    @bradh9800 Месяц назад

    The most accurate and most reassuring method is to use one of these other means to determine what you think you might want to spend and then try living on that amount for six months before retirement.

  • @rs4328
    @rs4328 Месяц назад

    Retirement is awesome and you don't spend nearly as much as when working. You make what you have work. All this fear of running out of money is nonsense. You'll want to keep your brain going so work a bit if you need more.

  • @bss6565
    @bss6565 Месяц назад

    Leaving more confused.

  • @IsabellaAriau2m
    @IsabellaAriau2m Месяц назад

    I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024

    • @MasonJacobo2w
      @MasonJacobo2w Месяц назад

      Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.

    • @AidenLiamf7q
      @AidenLiamf7q Месяц назад

      Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

    • @SophiaChloé6f
      @SophiaChloé6f Месяц назад

      I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

    • @AidenLiamf7q
      @AidenLiamf7q Месяц назад

      NICOLE ANASTASIA PLUMLEE' is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

    • @SophiaChloé6f
      @SophiaChloé6f Месяц назад

      I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you

  • @jimc336
    @jimc336 9 дней назад

    Get to the point! Wait… there is no point.

  • @eb9978
    @eb9978 Месяц назад

    If you aren't working you are probably spending money lol! I'd budget for spending the same or more

  • @Spp235.
    @Spp235. 2 месяца назад

    Uggh m. It took 15 mins say the obvious.

  • @kevinkenney-m5b
    @kevinkenney-m5b Месяц назад

    These videos are just ludicrous..and I’m not just picking on this one. Steve and Diane case? So they have $1.25 mil set aside …not to mention they could sell their house…+ social security..
    So….$5000 expenses/month or $60k. Add on another oh idk maybe $9000 year taxes if it’s pre tax retirement.
    $5700 month needed roughly.
    Say they get just 5% return during retirement on that $1.25m
    Just the interest alone will almost cover their monthly expenses. Now add in SS..😂😂
    82% probability? Huh? Is Monte Carlo assuming a decade long Great Depression?
    Just on the interest of the retirement portfolio AND SS this couple will prob be bringing in a minimum of $8000 month..minimum.
    Without touching the principle.

    • @onedegreeadvisors
      @onedegreeadvisors  Месяц назад

      Per the video, the $5500/mo.is estimate for basic living expenses plus they have larger/additional expenses (mortgage, charitable giving, taxes) not included in that $5500. Thanks for watching.

  • @brucekeller8903
    @brucekeller8903 Месяц назад

    The flaw in his assertion is that he assumes that I haven’t been religiously tracking my actual expenses for years already. I know exactly what the spending that maintains my living standard is to the penny. There simply isn’t a better way to know what your retirement budget should be if you are already a disciplined budgeter. These types of videos are kind of condescending, IMO.

    • @onedegreeadvisors
      @onedegreeadvisors  21 день назад

      That's great, Bruce. Most people don't do that (nor want to). Glad you found what works best for you. Thanks for watching!

  • @MarkDiSciullo
    @MarkDiSciullo 23 часа назад

    Inflation = Democrat administration.

  • @lcee6592
    @lcee6592 3 месяца назад

    Saved a million dollars or more.....
    😂😂😂😂😂😂
    Please say you were kidding!!!
    Maybe 1.2% at best have a million plus? (blue collar schmucks)

    • @UNDERDOG18UNDERDOG18
      @UNDERDOG18UNDERDOG18 3 месяца назад +2

      We have over a million and I am only 52. Left home as teens. No help.

    • @lcee6592
      @lcee6592 3 месяца назад

      @@UNDERDOG18UNDERDOG18 you are clearly in the minority with that!

    • @j10001
      @j10001 3 месяца назад +1

      You’re right that it’s not the norm.
      About 10% of retirees have $1M or more saved at retirement. The median savings is closer to $200,000.
      If you include a house, the numbers are a lot higher-but you can’t eat your house!

  • @aquaticflo1
    @aquaticflo1 3 месяца назад +3

    Harris add puts a bad taste in my mouth before you speak which is unfair to you

    • @onedegreeadvisors
      @onedegreeadvisors  3 месяца назад

      Appreciate you watching!

    • @heidikamrath1951
      @heidikamrath1951 2 месяца назад +2

      You know you can skip the ads, right? There is a little countdown at the bottom right. Of course, if you let it play, then her campaign has to pay for the ad time. It’s a trade-off. Sometimes I get so angry seeing trumps face or hearing his lies that I just have to skip it. Other times I let it play and I go in the other room. That way his campaign has to pay for the ad, depleting the money that grifter has earmarked for his attorney’s bills.

  • @jimbrown4640
    @jimbrown4640 3 месяца назад

    It is impossible to estimate expenses.

    • @James_48
      @James_48 3 месяца назад +4

      Why? An estimate is just a series of assumptions, based on data. Of course it’s possible to make an estimate.

    • @onedegreeadvisors
      @onedegreeadvisors  3 месяца назад

      It can be good to estimate expenses and compare the outcome to other methods. Thanks for watching!

  • @TheBryanmauro
    @TheBryanmauro 3 месяца назад

    Are you clowning?