You’re right! Just trying to give helpful examples in case $6k would be helpful for all of you. SS for example purposes only to help illustrate. You’re correct / I made assumptions!
@@earlyretirementari I am retiring at 32 and also our SS is much less generous than in the US, and honestly with this in mind, the video is useless. Too many assumptions. I will be lucky to get 300 dollars per month in SS at the age of 80 when I retire. Social security schemes are collapsing all around the world. So in 50 years when I am eligible SS will have to be very low or non existent.
@@ZelenoJabko Not really much point in watching any of these videos if you are wealthy enough to "retire" at 32. Clearly, SS is not a concern for you - now, or ever.
I know people who have spent $10,000 or more per month for years. When they retired they were broke. With two incomes, they thought they were rich, always had big parties, moved into a bigger house, always with a new car or truck. Acted like they owned a big money tree. It funny watching them live retired life with their engine running on idle.
I'm 55, and I plan to continue to work full time until age 60. My portfolio is at our goal of 2.5M not including our house and our annual net living expenses is 80k or about 7k per month. Also at age 60 I may cut my hours to part time to bridge over to 65 and Medicare. I have a pension from work which will be about 1k per month at 65. I work in critical care as a nurse so a lot depends on how I am doing as I age. At age 70 I'll take SS estimated to be about 3k per month. My wife is my same age so she will likely take spousal SS at age 70 also and get about 1.5k per month or half my amount.
Sounds like you are in good shape and probably working too long based on your needs but good on ya for planning and saving so well - we're 57 planning on soft retiring at 60 (were builders) but we are still about $1mm shy of my goal based on our spending which is in the $140/yr range - good job!
Ari I just texted you. I'm now interesting in using your services to get us on track to early retirement. Thanks for this great & informative video. :)
Hi, I didn’t follow the assumption about getting $4000 month in social security. If this is an early retirement scenario then one would most likely be retiring before they would claim social security.
Astute observation - if retiring early, you typically must fund all of your spending from your portfolio… until you reach what is an ideal for your situation, age to start Social Security.
One clarification I would appreciate is what do you mean by early? You said it's before the traditional age of 65, but are you talking 35, 45, 55? I assume you're speaking loosely and could actually mean any age, but it would be helpful to hear the approximate age you're meaning so I know how your strategies apply to me. Thanks for the video.
Annuities (MYGAs + SPIAs) can help bridge the gap of early retirement to SS. Gives u a principal protection income floor to protect against sequence of return risk at the beginning, and then a keep a chunk of your money in a lifetime income stream annuity . Portion of $ stays in market for growth/inflation hedge
I fired my advisor because i thought his picture of 100k per year with my 2 mill in trad ira, roth ira, brokerage and another $250 cash , a $30k annual pension, and delayed Soc Sec of $3,000 sounded too good to be true. I subscribed to a respected planning tool that did not agree with his outcome. And he couldn't explain what his input variables were. Having a real plan you can trust is critical to being able to spend confidently in retirement. And despite having just turned 60 with the above income sources, no debt and paid cars, I still don't have that feeling. Now Ari, I don't know what or who to believe 🤔😬😄
The truth is there are lots of bad advisors out there. Sorry to say. Software alone doesn’t give anyone that feeling. In my opinion the key is the right advisor. Biased, obviously.
Actually, apologies for popping the balloon, and you do not share all your assumptions, but if we make some reasonable assumptions, your original advisor might have actually been correct. And his failing perhaps was not skillfully explaining how, and helping you to feel comfortable. Assumptions: (over-simplified a bit since does not factor inflation, SS COLA, etc…) $2 million retirement accounts portfolio $250K(?) cash $30K current annual income from pension $36K Social Security annual income, “delayed”… until age 70? $100K annual spending So age 60 thru age 70 needs from the portfolio: $110K per year (assuming $10K taxes) minus $30K pension = $80K per year. $80K withdrawn from a $2 million portfolio is a 4% withdrawal rate for the first ten years. Most experienced, skillful advisors a comfortable with higher than 4% withdrawal rates early in retirement as long as there is future income coming to fill in the income gap later. Then at age 70 your $36K annual Social Security (actually will be much higher due to SS COLA adjustments, but so will inflation) kicks in, reducing your annual portfolio withdrawal needs to $44K per year. That’s a bit more than a 2% withdrawal rate. Of course this is simplified, assuming your $2 mil portfolio out grows inflation - it certainly should if properly invested. Bottom line: most folks would feel pretty comfortable with that level of safety margin - your extremely low withdrawal rate. In fact, RMD’s at age 75 of likely $80K+ (will be painful - you only need $44K) will make you hope a large portion of your portfolio is in Roth’s, not traditional IRAs or 401Ks.
10% taxes? You have to make less than 22K to pay that and only because taxes are low currently. If you invest wisely you probably go over that threshold in capital gains and dividends, not to mention the $4000 a month in soc sec that you assume is also taxed. $4K a month in SS is also way overblown.
I have clients receiving more than $4k, and clients receiving closer to $2k. It completely depends on many factors. Hopefully the example was helpful so you can determine how to determine for your situation!
If you are reitring early you can't get your social security, and most people are never going to get $4000 a month from social security, the average is like $1500 a month
Loved the insights shared in this podcast! Retirement planning doesn't have to be rocket science, right? It's all about finding the right balance and staying ahead of the game. Speaking of which, ever thought about diversifying with crypto? My Digital Money is making crypto investing easy-peasy, even for us non-finance folks. So why not give it a shot and watch your retirement funds grow? Here's to securing that bag, the crypto way!
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.
4k A MONTH FROM SSN???? That is more than double the avg. WTF would you start there? Isn't the avg around 1.7K? Maybe you are assuming married and 2 SSN checks? Lotta words, just not a lot of utility. Bottom line. Learn to do this yourself, or pay someone to do it with your EVERY detail.
Why would you assume the average for someone with 1.1 million saved? I’ll get 3k at FRA and I’m sole provider and way way under any high income threshold.
@@5metoo At FRA I will get 4k or even a bit more but not really my point. Most don't, and most don't wait till FRA. My point was that this vid is really for much higher (in retirement) earners. Title is a bit alluring but I am sure many who will be at or even below the averages might click it. Title should be "What you need" not "How to". To be fair though, I still think most people (by far) don't end up with even 3k a month in SSN. That does not mean they could not have saved well. In the end, when doing research for my mother, this video is not worth her time. Lastly, even with 1.1 saved and 4k a month, I don't 10k a month is feasible. Closer to 7k IMHO. 4% live till 90. I am ignoring taxes and "goal's". 😊
@@JeromeKJones I think you’re quibbling that the title isn’t quite perfect enough is a bit much. I don’t think 10k per month is really feasible either. But I guess my point would be why is it always that 90% of the time the most intense objections in retirement forums are about how to characterize the average person, which is a fiction. The point of these videos is to educate, not to better or more perfectly to define this fictional entity.
Then you live in a low cost area of the country - we make close to 400 and spend SPEND 12000 a month and dont do much - insurance costs are crazy high - health, cars, home, life, etc etc - throw in a $2500 mortgage and eating out once or twice a week and guess what - 12k a month
Good for you - you’re planning to retire in 9 years, right? Assuming you have no retirement funds, with that spending rate, after taxes, you should be able to put away $200K/year. $72K annual spending needs something like a $1.8 mil portfolio with no pension or social security. $1.8 mill divided by $200K = 9 years, not even factoring in investment growth over those 9 years.
![Felix "Unfair" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/Oswujxm2Ag0/mqdefault.jpg)
Thank God for RUclips. My parents did not have the benefit of learning this information
Thank you Darrell. I am also a binge-RUclipsr (of mainly history content)! It’s the best.
He didn’t ask about $6000. He asked about $10000. He may not be old enough to get SS.
You’re right! Just trying to give helpful examples in case $6k would be helpful for all of you. SS for example purposes only to help illustrate. You’re correct / I made assumptions!
Also $4000 a month is extremely rare most people get around $2000
@@LuisRCruzwhere do you live??
@@earlyretirementari I am retiring at 32 and also our SS is much less generous than in the US, and honestly with this in mind, the video is useless. Too many assumptions.
I will be lucky to get 300 dollars per month in SS at the age of 80 when I retire. Social security schemes are collapsing all around the world. So in 50 years when I am eligible SS will have to be very low or non existent.
@@ZelenoJabko Not really much point in watching any of these videos if you are wealthy enough to "retire" at 32. Clearly, SS is not a concern for you - now, or ever.
Hi Ari. Continue to give good informations for the seniors.😂 Good job!!! 👏👏👏
HA
Hi, do you have a retirement calculator on your website that I can use? Thanks
We have been blessed by living in one of the lowest-cost-of-living areas in the U.S. The dollars stretch. 😀Thank you, Ari!🎯
Woo!
Where do you live? West Coast is expensive 😳
I know people who have spent $10,000 or more per month for years. When they retired they were broke. With two incomes, they thought they were rich, always had big parties, moved into a bigger house, always with a new car or truck. Acted like they owned a big money tree. It funny watching them live retired life with their engine running on idle.
Great point, do not spend if you’re not in a position to do so long-term.
I'm 55, and I plan to continue to work full time until age 60. My portfolio is at our goal of 2.5M not including our house and our annual net living expenses is 80k or about 7k per month. Also at age 60 I may cut my hours to part time to bridge over to 65 and Medicare. I have a pension from work which will be about 1k per month at 65. I work in critical care as a nurse so a lot depends on how I am doing as I age. At age 70 I'll take SS estimated to be about 3k per month. My wife is my same age so she will likely take spousal SS at age 70 also and get about 1.5k per month or half my amount.
Thank you very much for sharing and your assistance to keep us all healthy.
Sounds like you are in good shape and probably working too long based on your needs but good on ya for planning and saving so well - we're 57 planning on soft retiring at 60 (were builders) but we are still about $1mm shy of my goal based on our spending which is in the $140/yr range - good job!
Retire now
Don’t forget sequence of return
Ari I just texted you. I'm now interesting in using your services to get us on track to early retirement. Thanks for this great & informative video. :)
Text received and just sent you a message back! You’re very welcome.
Hi, I didn’t follow the assumption about getting $4000 month in social security. If this is an early retirement scenario then one would most likely be retiring before they would claim social security.
Astute observation - if retiring early, you typically must fund all of your spending from your portfolio… until you reach what is an ideal for your situation, age to start Social Security.
One clarification I would appreciate is what do you mean by early? You said it's before the traditional age of 65, but are you talking 35, 45, 55? I assume you're speaking loosely and could actually mean any age, but it would be helpful to hear the approximate age you're meaning so I know how your strategies apply to me. Thanks for the video.
I generally view early as pre-65 (50-65). Anywhere in that range, but it just totally depends on your overall plan!
Great info
Annuities (MYGAs + SPIAs) can help bridge the gap of early retirement to SS. Gives u a principal protection income floor to protect against sequence of return risk at the beginning, and then a keep a chunk of your money in a lifetime income stream annuity . Portion of $ stays in market for growth/inflation hedge
What do all of you think about annuities?
@@earlyretirementari Im warming up to the idea for using them for a bridge like Lefty suggested
I fired my advisor because i thought his picture of 100k per year with my 2 mill in trad ira, roth ira, brokerage and another $250 cash , a $30k annual pension, and delayed Soc Sec of $3,000 sounded too good to be true. I subscribed to a respected planning tool that did not agree with his outcome. And he couldn't explain what his input variables were.
Having a real plan you can trust is critical to being able to spend confidently in retirement. And despite having just turned 60 with the above income sources, no debt and paid cars, I still don't have that feeling. Now Ari, I don't know what or who to believe 🤔😬😄
The truth is there are lots of bad advisors out there. Sorry to say. Software alone doesn’t give anyone that feeling. In my opinion the key is the right advisor. Biased, obviously.
Actually, apologies for popping the balloon, and you do not share all your assumptions, but if we make some reasonable assumptions, your original advisor might have actually been correct. And his failing perhaps was not skillfully explaining how, and helping you to feel comfortable.
Assumptions: (over-simplified a bit since does not factor inflation, SS COLA, etc…)
$2 million retirement accounts portfolio
$250K(?) cash
$30K current annual income from pension
$36K Social Security annual income, “delayed”… until age 70?
$100K annual spending
So age 60 thru age 70 needs from the portfolio: $110K per year (assuming $10K taxes) minus $30K pension = $80K per year.
$80K withdrawn from a $2 million portfolio is a 4% withdrawal rate for the first ten years. Most experienced, skillful advisors a comfortable with higher than 4% withdrawal rates early in retirement as long as there is future income coming to fill in the income gap later.
Then at age 70 your $36K annual Social Security (actually will be much higher due to SS COLA adjustments, but so will inflation) kicks in, reducing your annual portfolio withdrawal needs to $44K per year. That’s a bit more than a 2% withdrawal rate.
Of course this is simplified, assuming your $2 mil portfolio out grows inflation - it certainly should if properly invested.
Bottom line: most folks would feel pretty comfortable with that level of safety margin - your extremely low withdrawal rate. In fact, RMD’s at age 75 of likely $80K+ (will be painful - you only need $44K) will make you hope a large portion of your portfolio is in Roth’s, not traditional IRAs or 401Ks.
Your fired adviser was easily right - too easy. Now you are still working and worrying
Love it.
10% taxes? You have to make less than 22K to pay that and only because taxes are low currently. If you invest wisely you probably go over that threshold in capital gains and dividends, not to mention the $4000 a month in soc sec that you assume is also taxed. $4K a month in SS is also way overblown.
I have clients receiving more than $4k, and clients receiving closer to $2k. It completely depends on many factors. Hopefully the example was helpful so you can determine how to determine for your situation!
A lot of people work to their 70s because they do NOT know what else to do.
If you are reitring early you can't get your social security, and most people are never going to get $4000 a month from social security, the average is like $1500 a month
What do you think of the 'retirement spending smile'?
I was impatient. You talked about it at minute 5. Lol
@@jonstoehr175 HA!
Loved the insights shared in this podcast! Retirement planning doesn't have to be rocket science, right? It's all about finding the right balance and staying ahead of the game. Speaking of which, ever thought about diversifying with crypto? My Digital Money is making crypto investing easy-peasy, even for us non-finance folks. So why not give it a shot and watch your retirement funds grow? Here's to securing that bag, the crypto way!
1.5X on RUclips. 😀 Thanks.
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.
Thank you for the lead. I searched her up, and I have sent her a message. I hope she gets back to me soon.
Buy buy stocks and etfs now.
Pajamas ?
🤘🏻
4k A MONTH FROM SSN???? That is more than double the avg. WTF would you start there? Isn't the avg around 1.7K? Maybe you are assuming married and 2 SSN checks? Lotta words, just not a lot of utility.
Bottom line. Learn to do this yourself, or pay someone to do it with your EVERY detail.
Why would you assume the average for someone with 1.1 million saved? I’ll get 3k at FRA and I’m sole provider and way way under any high income threshold.
@@5metoo At FRA I will get 4k or even a bit more but not really my point. Most don't, and most don't wait till FRA. My point was that this vid is really for much higher (in retirement) earners. Title is a bit alluring but I am sure many who will be at or even below the averages might click it. Title should be "What you need" not "How to". To be fair though, I still think most people (by far) don't end up with even 3k a month in SSN. That does not mean they could not have saved well. In the end, when doing research for my mother, this video is not worth her time. Lastly, even with 1.1 saved and 4k a month, I don't 10k a month is feasible. Closer to 7k IMHO. 4% live till 90. I am ignoring taxes and "goal's". 😊
@@JeromeKJones I think you’re quibbling that the title isn’t quite perfect enough is a bit much. I don’t think 10k per month is really feasible either. But I guess my point would be why is it always that 90% of the time the most intense objections in retirement forums are about how to characterize the average person, which is a fiction. The point of these videos is to educate, not to better or more perfectly to define this fictional entity.
@@5metoo OK... ignore it then. See ya.
$10,000 a month.....that's crazy. I make $310K and at best I'm spending $6k a month.
You probably don’t make $310k a year and spend $6k a month. Just my guess.
Dude! Live a little.
Then you live in a low cost area of the country - we make close to 400 and spend SPEND 12000 a month and dont do much - insurance costs are crazy high - health, cars, home, life, etc etc - throw in a $2500 mortgage and eating out once or twice a week and guess what - 12k a month
Good for you - you’re planning to retire in 9 years, right?
Assuming you have no retirement funds, with that spending rate, after taxes, you should be able to put away $200K/year. $72K annual spending needs something like a $1.8 mil portfolio with no pension or social security. $1.8 mill divided by $200K = 9 years, not even factoring in investment growth over those 9 years.
I’m making the same and I’m paycheck to paycheck. Yes, I’m spending 12k a month.