How Much Do You Need to Retire? (Less Than You’d Think)
HTML-код
- Опубликовано: 9 июл 2024
- Episode #492
Everyone tells you you’ll need millions to retire, let alone retire early. You hear it all over mainstream financial media, “You need FIVE million dollars” or “Three million dollars is enough, but you have to be frugal!” Even having half a million dollars in investments seems like a lofty goal for most Americans. Are these financial “experts” just out of touch with the everyday person? And if so, is there a way to retire with less than a million dollars? Surprisingly, yes!
Wes Moss, certified financial planner, money educator, and author of the best-selling book "You Can Retire Sooner Than You Think," is here to show you that retirement isn’t that far away. Through some simple calculations, Wes enlightens us on how many Americans are already in the position to retire and why you don’t need many millions to live a comfortable post-work life. But that’s just the tip of this financial education iceberg.
We get into a much deeper discussion with Wes about what a happy retirement really looks like and the key signs that you’ll live a satisfying retirement life. There are two main factors to a happy retirement, and if you haven’t been paying attention to them, you can almost guarantee you WON’T enjoy financial freedom when you achieve it. So, if you want a happier, healthier, wealthier, and longer retirement, stick around!
Show Notes at:
link.chtbl.com/Money
~~~~
Join BiggerPockets for FREE 👇
www.biggerpockets.com/signup?...
~~~~
Join the BiggerPockets Money Facebook Group:
/ bpmoney
~~~~
Find an Investor-Friendly Agent in Your Area:
biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
biggerpockets.com/findlenders
~~~~
Got a Money Tip to Share? Send Us an Email:
moneymoment@biggerpockets.com
~~~~
Past Episodes Mentioned in Today’s Show:
Bill Bengen (4% Rule): www.biggerpockets.com/blog/bi...
Motley Fool: www.biggerpockets.com/blog/mo...
Michael Kitces: www.biggerpockets.com/blog/mo...
~~~~
Connect with Wes:
Books: wesmossbooks.com/
Podcast: www.retiresoonerteam.com/podc...
Radio: www.wsbradio.com/on-air/money...
Retire Sooner: www.retiresoonerteam.com/
~~~~
Want to Be a Guest on the BiggerPockets Money Show? Apply Here:
Guests: www.biggerpockets.com/guest?u...
Finance Friday: www.biggerpockets.com/finance...
~~~~
Connect with Scott and Mindy on BiggerPockets:
Scott: www.biggerpockets.com/users/s...
Mindy: www.biggerpockets.com/users/m...
00:00 Intro
01:44 Do You LOVE Your Job?
04:29 The Wave of “Unretired”
07:11 You DON’T Need Millions to Retire
14:18 How Much is “Enough” to Retire?
19:13 You Can Retire with WAY Less!
29:31 The Science of a “Happy Retirement”
39:57 More Money, More Happiness?
42:58 Connect with Wes!
43:26 Find Your “Core Pursuit"!
I don't know if it's rote conditioning or laziness but most retirement advice is for couples. Look at the census and there are more and more single people living alone --share more than tripled from 1940 to 2020.
Same principles apply.
@@mikem7489 Yes, but there are notable differences and unique concerns especially for women
@santafilipina9020 why for women?
@@jtowensbyiii6018 we generally live longer and our investment styles tend to be more conservative so this may not keep up with inflation, etc.
time to find some love..
I would really like a show that discusses retiring single without a paid off home. In other words, those of us who have a decent 401K plus Social Security but do not own a home...
great idea, i would like some content on this too
Get a roommate or family member to live with you. Over 5-10 years it will save you a fortune.
@@Labbernese77I don’t understand why people don’t consider this path!
@@ingababy5196 they pay 700 bucks, so you are helping them and they are helping you. That's what we are here for to help others. All these people living alone is unhealthy we are social beings,,, it's " social capital"...
A paid for home makes it easier to predict future expenses. Rent is a wild card. Can increase at an insane rate. 😮
Suze Orman is So Out of Touch! Most people can't earn anywhere near that! Not everyone has a cushy job as talk show host? Other than desk jockeys there are Hard Jobs in factories, warehouses, tire and repair shops? I work in a Hospital for 38 years, only 61, I can't imagine doing this for 9 more years? She has obviously never worked a Real Job in her privileged life?
I have a desk job I could work till 80 really lol. But I rather work part time once I get to 67/70 ish. but since I sit on my butt most the day I can't say its hard work lol.
You’re forgetting that half of marriages couples divorce and now you have gray divorce. Please write a book about handling retirement on your own.
This discussion revolves around the “ideal “ situation… “start young… couples (dual incomes)… paid off house
In realty there are a lot of us who have lost most of that through divorce or other life changing situations (“silver divorce “) as well as the newer “ideal couples” who are currently starting out… making what used to be a “decent income” (70,000 +) & are completely priced out of most current housing markets & are just trying to keep up with the rapidly escalating cost of living ..
I appreciate your information… however, for me personally, I unfortunately don’t fit into any of the “ideal boxes” (PS not because of laziness)
I retired at 61 in july🎉 took 6 months off went back Part-Time as i had planned. Easing into Retirement?
Its funny how many people are early retirement youtubers podcasters etc, but none of those people are retired lol!
Probably because most people with the discipline to have retired comfortably in their 50s have no need to sit in front of a camera and are off doing whatever they please instead
They are not retired because they are making thousands of dollars each month on RUclips. Then, they take that money to invest in other projects (stock market, businesses, selling courses , etc.)
They also use RUclips money to buy real estate. Then, make videos about how many properties they own. Followed up by selling courses on how you can do the same thing. However, they rarely discuss how much they make on RUclips.
This is great. He's saying the quiet part out loud. None of these financial planners factor in SS and pensions and this massively skews what people think they need.
I think it's worth noting that many teachers do not get SSI if they are getting a teacher's pension. They pay into the pension instead of SS.
I am 75% there, this conversation is great for the 35 year old. Using The new wages standards, however I started working at $3.55 an hour. Worked 2 jobs for decades and my social security is going to be around $2000.00 a month. 3 months after I start collecting I have been told by social security that there will be a 25% reduction. SS website states it should not be considered no more than 40% of your retirement maximum. In a few years the liquid assets went from 500,000.00 now 700,000.00 what will it be in 10 years. The goal is achievable, if you have the time or a really great paying job. Last comments were spot on, Wes. Help some better than none. Will tune in to his podcast as well. You guys are great. Again last comments from both are great. Thanks for all you do.
Just FYI I retired in the great recession with $143K in IRA and an unemployment check. It took me some juggling and careful planning but today I live on an early SS Check under $2K and have about two thirds of it left over every month. I'm going to Spain this year for vacation. I lost massively in the recession, I retired with $500K less than I had planned. I ended up retiring at 59 because after two years of unemployment you might as well be retired. it all worked out. Be smart, save what you can, invest wisely but be creative and don't let fear paralyze you.
Great episode as always!
This was all good but still, I think that $3k or even $2k per person I social security is hard to reach. Many people get less than the $2k minus the deduction for Medicare. That’s a big difference in additional sources of income that many people can’t get. 😢
Regarding deduction for Medicare includes our Part B monthly premium deduction, Monthly premium for a supplement plan to cover gaps in Part A & Part B and our monthly premium for Part D and our deductibles. The other option is Medicare Advantage plenty of healthcare horror stories that goes with that type of plan.
So you’re saying if your SS benefits are 2000🤑🤑bucks A month, it’s still taxed ?? Thought social security shouldn’t be taxed at all??
You want to get at least $2500 in SS. How much depends on when you take it and how long you payed in.
At age 65 you get Medicare, either traditional or Medicare “Advantage”. The Advantage plans are much cheaper, but more variable. They are not necessarily bad, but require some knowledge to navigate, and avoid the problematic plans.
Yup I'll only get $1,300 in SS if the Republicans don't take it away
I just subscribed to your podcast. I love your energy when you first come on and how you introduce your guest. I also enjoyed your interview with Vivian Tu.
$500 Grand, a government pension, and eventually social security and I'm set!!
Great gam gam….is that you?
@@abrahams.lincoln6749 YEP, almost quit many times but glad I didn't!
Do you get SS with Govt pension. Fed employees use to not pay into SS, so they did not get SS in addition to their pension.
@@Kornheiser10 I'm state and yes I paid into it and can get SS and Medicare. My ex was railroad and he doesn't get SS. His pension is way better than mine!
@@Kornheiser10that was the old system. There are not very many Feds left who were on that system. Most are FERS Feds now and yes they pay into SS. That’s not a good thing as the old system was the best pension the world has ever seen.
Excellent episode. These conversations go deeper than most on RUclips.
Yes. You don’t need that much to retire. I’m living in one of the most expensive cities in the world: Singapore. $2k per month is arguably more than enough. It’s just that you need to use your brains quite often to get good deals. Be happy with the cheaper things. Avoid the expensive ones. Like it’s really cheap for us to go to Bali for a holiday. Cars are super super expensive. I think it’s the same for anywhere else in the world. Try to get happiness from the free or cheaper things in your location. 😊
Is rent included in the 2k per month or do you own your house?
@@marshallhughes4514 hi. I own my own little place. So rent is not included in the $2k. But it includes $135 in maintenance fees and about $40 in property tax. Per month. This $175 used to be just $120 per month last year. But I guess inflation via increased govt taxes are unavoidable. I live alone. My basic month,y expenses are roughly:
Utilities 60
Home 250
Mobile 50
Internet 40
Transport 50
Health 100
Eating out 1 or 2x per week 150
Food 300
Misc 100
Medical 200
Fun 200…….that’s $1500
That leaves a good $500 to go towards a holiday budget.
My rent is 2,000 in NY
@@CynthiaAva hi Cynthia. That’s a lot! Rent for just a ROOM in Singapore can often be $1k. What I did when I was younger was sharing a room. At times, there were 4 to a room. As long as room mates are “nice”, it’s workable. I had to choose to do this for several years as rent is often super expensive in Singapore. So, I try to reduce expensive out-goings. Nevertheless, for older people in Singapore, the govt has a system of “selling” a small studio for about 30 years, for about $100k. Big enough for a couple. Tenure, size and prices vary a bit.
Going out on a limb and guessing 2k doesn't provide for 2 adults and 4 kids 😂
My goal is to get my expenses under 10k per month BEFORE any investments.
Loved Wes! Awesome content he shared!
I don’t need 5 million dollars for retirement. That’s wild😂😂
I only need about $60,000/year to live which is just a smidge over 1% of $5 million.
Agree. 😅
in all reality only think I need to retire is to have my house paid off I would work part time anyway cause why do I not want to do something just wierd. I cant imagine being retired as in not working but knowing you only got to work 3-4 days a month to pay your taxes and utilities and chill the other 25 days is more than enough retirement for me.
Lets be honest, most people probably go pretty strong in the 1st maybe 10 years of retirement and after that they are luck to spend their days watching the squirrels. So you would have to try and spend 4%. Especially if you listen to the crazies saying to raise the retirement age to 70.
Agreed, but the wild card is health care costs increasing as you get older.
Txs for the discussion about MOVING NEAR YOUR CHILDREN. This is a point of annoyance with me and my friends from elementary. We come from one of the poorest areas of our province. No jobs. We all had to leave. And our parents all pull out the narrative, but i spent my life here... THERE WAS JOBS THEN, not now. And its a 7 hr drive from an international airport... At least move near an international airport...it's not like there are services there
To be fair dave was talking to a 70+ year old with 2mil+ and told that individual he was good with 8%
64 with a little shy of 600k saved but I have 130k mortgage . want to hang it up next year but I ll probably still work 1 day a week...
If you have no debt, you can live on $3-4k per month. But, life will be a lot more fun on $5k per month. Both our mothers live on less than $2500/mo at age 86 with no portfolio.
I have no debt and over 7 figures savings and don’t ever plan on having 2500.00/month to live on. Why does everyone think you need 4,5 or more thousands a month?
@@52CA do you mean you never plan on “spending” $2500. You obviously “have” with 7 figures saved.
Congrats on that. We also have no debt, a paid off home, and a nice portfolio, but we plan on spending over $10k per month while we can enjoy it. We are frugal, but not minimalists.
The problem is that many people with lower means still have higher housing costs, either from rent payments or mortgages, and that significantly raises their monthly needs.
@@randolphh8005 I intend for my portfolio to grow for the next 10yrs. Hopefully double. I think 2022 was a big wake-up call as to what can happen in a down market. About the most I can ever see pulling out is 30k a year but years down the rd. When I get to SS then I’ll stop pulling anything from savings and just spend all the SS every month. At that point my portfolio will be just one giant emergency fund.
I’m 33 and we should 100% be able to retire around 60. Assuming nothing catastrophic occurs, knock on wood!
😂
Median retirement savings for 65-75 year olds in the US is 168K… 5M is very high but 700K is also much much more than median American has. I’m curious how/if the median American is retiring.
Teachers in Texas don't get SS. A 403B AND a IRA are needed IMO.
In California teachers do not pay into social security and do not qualify for social security. There are a lot of people who do not qualify for social security but they may have healthy pensions such as railroad workers who also do not pay into social security. Unfortunately our military also do not get social security but I think they should regardless. I think it should be clear that you only qualify for social security if you've been paying into social security and not all jobs pay into social security such as some state jobs. Also, you don't touch on the topic of when one of the spouses die. Social security goes down or barely moves up. That can be very discouraging when one partner is older than the other partner.
US military do pay into social security.
Remember teachers salary are SS tax exempt therefore they can not receive SSI when retired
There are only a few states that have teachers exempt from social security.
Sorry but that's not entirely true. It depends on the state you reside/work in. I teach in NJ and pay into SS. Therefore, I will receive SS benefits. But unlike SS, my pension will not reflect COLA. I'm not complaining just simply stating.
Depends on the state you're in. My mother is a teacher in NC and she pays into social security and will get SSI.
Pay off all debt. And spend less than you bring in. I retired at 60 instead of 65 as i had planned originally but I'm not looking back retirement is too wonderful to go back to a crappy 50000 job. I live fruggally and pay cash only on everything i have no wants so retire a.s.a.p. while your health is good because if you wait til you think you got enough money you'll never tire sadly. Again no debt is the ticket to retirement you don't need much. The paid off house and no debt and you can get by on very little your health is more important when i quit my job within 2 weeks i was like a new man just happy with very little if i need in the future i can always downsize and lower my bills even more if need be but I'm in Calif and my bills are low and only a very small pention however can get by so when my wife and i collect ssa we will be in great shape. With almost nothing in savings.
Wes started talking about people >55 "retiring" in 2020, but he didn't mention whether he had taken into account how many people in that age group that died from COVID that year. I bailed on the video at that point, because it's just another youtuber cherry picking data to support his POV.
Not enough what will property taxes be in 10 years???
Literally not one person knows what taxes will be in 10 years
39:44 u shouldn’t pick favorites. The kids feel it even if they don’t say it
I should have 5.6 million between my stock portfolio and rollover Ira by 50 According to my dividend calculator
I'm my industry pensions are literally unheard of and nonexistent. The people I know in other industries with pension usually stay in their toxic job only because of the pension.
I really wish I didn't have to pay into SSI and could just invest the money myself
But if you “move back to GA” you may very well have a mortgage. 😕
You forgot to big expenses for older people assisted living and healthcare
This is probably a niche complaint, but my biggest problem with all the retirement planning people I hear from is they still say you need to save for 20+ years. I'm 30 right now and I'm hoping to be retired by 34. Why isn't there a bigger focus on getting retired EARLY. Worst case I'll be retired by 40. I don't think retiring at the "normal" age of 66.5 or whatever is a good goal unless you're one of those 1/5 that actually love their job.
Because most people can't afford retiring without about 20 years of work and savings, particularly if you have children. Of course if you can save $1million per year you might be able to get there, but 99.99% of Americans can't, and you won't have SS ti help out.
This is hilarious. You’d need $$$$ millions to retire that early. Good on you if you can get there but how do you plan on ending up with $4-5M in the next 4 years?
How? You make 500k a year?
federal workers under FERS retire with 1.1% of high three pension.. not all that great.
I am debt free at 57...no mortgage..cc or car note...the way I feel about my job is there somethings I do like and others I don't...if I am let go tomorrow I could care less do me the favor...I rather work part time now...doing something that has meaning and makes a difference until I retire at 62 1/2!
I thought I’d written this when I saw your comment. In exactly the same boat!
Same. Wish more companies would give part time options
Who are these twenty percent of americans that love their company and their job? that love doing labor for other people's benefit?
Not everyone is into their job purely for the money. Doctors for example may like that their job gives them purpose. They're literally saving lives. My father was a college professor. College professors on the whole love their jobs. They're not trying to retire. At least not the professors I met through my father. I've met airline pilots who just love flying. Many would continue to fly until they died if there wasn't an age limit.
You state at about 29 minutes into the video that the teacher will get social security. That is not true in most states since teachers pay into their state teacher retirement and not social security.
When 08 happened, the little old lady landlord got no bail out. Her lifetime of war and depression gave her the steel to endure. A modern marshmallow stands no chance.
How can I retire at 45 and not have anything to worry about
I’m all for financial independence and retiring early!
I have a huge problem with the 1/5 who are trying to “bring their company down”. That’s ridiculous. If you don’t like your job, leave. No one is forcing you to stay in a job you hate.
Broke millionaire 😂 I can relate to that feeling 100%
12 minutes listening... and it's so infantile and wishy-washy these work-retirement points of view. Love-hate for the work is equal to love-hate for money. Work-job are vehicles to acquire the tool of the money. It's like responsibilities in a civil structured society... they are necessary. If it takes a lifetime to achieve something, so be it... If you do not agree with the effort results of the job and there's no way to enhance it... it's time for the free enterprise to change it for another opportunity to better oneself. But please stop the feeding of "if you hate your job," "retirement" mentality. ALL jobs are necessary (as long their legal and not inhuman), and we as landlords would be without businesses if everyone quit their hateful jobs. Focus on the upside and process of reaching that financial independence through real-estate investment without this crap of jobs and employment.
$1.25 million plus a paid off house? Sounds pretty easy. 🤣😂🤣
Tbh if you're already watching financial videos, it doesn't seem unreasonable at all
It is easy, that's only like 100 a month for 35 years
“Retire” sooner than they had planned 💀
5 % works actually better 100% stocks
There has been extensive research and studies from William Bengen, to the Trinity study that says you're wrong. 100% stocks is actually riskier with a higher possibility of portfolio depletion than a portfolio ratio of 50% stocks 50% cash and bonds up to 75% stocks 25% cash and bonds. 5% withdrawal only makes sense if you retire in your mid 60s.
What About DIVDENDS? Have not heard it mentiuoined. I get over $100k a year in divies and own my own house retired at 51.
My goal is it have 1mil in the 401k and 2mil in the Roth ira
There will be no happy retirement in DEBT USA
When the government only gives you so much money with no plans for a salary increase you are in trouble because rent,food, gas, and being in the hospital as a patient can make you poor in no time 😢
😊😊😊😊 these people make me laugh so hard, find a state or another country that your money will go further
Great episode. Early retirement is 100% doable. We were able to do it by age 28.
Wow how did you ? What investments did you use ?
Mainly real estate and then dividend stocks@@alexg8460
Ok.....🙄
What did you retire from?
My 9-5 job.@@Kornheiser10
5 mil
She’s needs help. She shouldnt be on this show.
Left after seeing her talk
Give it 100 years everybody and you'll be fine. Just listen to these knuckleheads about having to force yourself to be married just to make $90,000 from to social security and other forms of income like a pension as if most people have that nowadays
Oh brother I hear the yellow bus driving up on them😂
Mindy is cringe
I'm very PASSIONATE OF GETTING PAID NOT WORKING