Retirement is such a mixed bag these days. There’s so much negativity around it-rising inflation, market volatility, people working longer than planned.
Actually, there’s a lot of positive news people overlook. Many retirees today are finding ways to optimize their finances, like adopting tax-efficient strategies, diversifying their income sources, or even retiring abroad to stretch their savings further. It’s not all doom and gloom, but it does take the right guidance to navigate.
That’s true, but it feels like most people don’t even realize the mistakes they’re making-like not accounting for healthcare costs, failing to adjust their portfolio as they age, or letting emotions drive their investment decisions during downturns.
Totally agree. One mistake I avoided was trying to handle everything on my own. I connected with Joseph Nick Cahill, a CFA with decades of experience. He’s helped me avoid costly pitfalls while growing my portfolio strategically. What’s great is he offers free consultations, so you can see if his approach fits your needs without any pressure.
I’ve actually worked with Joseph Nick Cahill too! He’s the reason my portfolio bounced back after a rough patch during the pandemic. He’s great at balancing short-term goals with long-term wealth building, and his advice is practical-no gimmicks.
I wish I’d known about someone like him earlier. My biggest regret is not reinvesting after my initial losses. I stayed in cash, and with inflation, I feel like I’ve lost even more
We dropped our Homeowners Insurance. Installed galvanized siding + new mental roof on to help ward off wildfire damage.. A fire already ripped through our former town. We met 3 people not paid by their homeowners insurance, even 3 yrs later. I don't know if they were ever paid
SPOT ON overall. The complainers never see the sacrifices home owners made to get into there homes. Sleeping in foxholes, Deploying to Combat-zones, frozen basements, automobiles, tents and never eating out and saying no to all our wants Today for the needs of the future. Imho. Blessings ❤
Not sure this is correct information…CPI causes home Values to raise, which makes property tax & insurance to go up States like Texas have seen large tax increases. I just moved out of Texas because my taxes & insurance was pushing 1650 a month
The other comment is on the basket and inflation and all that. Regarding inflation and CPI, one thing that intrigues me is to look at a zero inflation scenario / possibility in the very near future. While 'everyone' might think that's amazing, we'd still be stuck with current cost levels of food, real estate, etc. If eggs and milk went up from $3 to $5 one year and there's a high inflation (CPI) to take that into account - from an overall basket perspective, then a zero inflation for the next period would still have the price of eggs and milk at $5. I don't think everyone understands that. Prices don't go down unless there's negative inflation or deflation.
I think that eggs and milk are poor choices to determine inflation. From my experience in retail I know that those prices fluctuate a great deal. Eggs that are $5 today may be $2 a month from now. I actually had someone call the police and accuse me of price gouging because the eggs went up so much once. I just showed them my invoice to show the prices.
I believe the average retirement amount changes include both those who retired during that period and those who were retired during the full period. That means the increase is partly from wage increases and from SSA inflation adjustments. Not sure how this impacts the amounts, but it is possible that SSA inflation amounts are different than the numbers you calculated.
It’s actually reassuring. What it mainly means is that if you own your house free and clear, your increase in Social Security will cover the inflation increase in food.
But the SS increase is only covering food. What about everything else? Food is just 1 drop in the bucket and the COLA does not cover any of that. In retirement, if you do not have an adequate amount of investments, rising costs will eventually start to erode them.
Well the COLA is covering more than the food. Its just that the CPI figures use housing to compute inflation and they count housing as being 1/3 of the figure. If you own your house free and clear, then discounting that 1/3 from the CPI inflation figure means that your COLA will cover the increase in basically everything else. Of course I think it would depend on how much your benefit is too. That’s another reason I am waiting until 70 for my benefits.
Retirement is such a mixed bag these days. There’s so much negativity around it-rising inflation, market volatility, people working longer than planned.
Actually, there’s a lot of positive news people overlook. Many retirees today are finding ways to optimize their finances, like adopting tax-efficient strategies, diversifying their income sources, or even retiring abroad to stretch their savings further. It’s not all doom and gloom, but it does take the right guidance to navigate.
That’s true, but it feels like most people don’t even realize the mistakes they’re making-like not accounting for healthcare costs, failing to adjust their portfolio as they age, or letting emotions drive their investment decisions during downturns.
Totally agree. One mistake I avoided was trying to handle everything on my own. I connected with Joseph Nick Cahill, a CFA with decades of experience. He’s helped me avoid costly pitfalls while growing my portfolio strategically. What’s great is he offers free consultations, so you can see if his approach fits your needs without any pressure.
I’ve actually worked with Joseph Nick Cahill too! He’s the reason my portfolio bounced back after a rough patch during the pandemic. He’s great at balancing short-term goals with long-term wealth building, and his advice is practical-no gimmicks.
I wish I’d known about someone like him earlier. My biggest regret is not reinvesting after my initial losses. I stayed in cash, and with inflation, I feel like I’ve lost even more
I own my house outright...
I never dreamed how bad insurance and property taxes would get.
We dropped our Homeowners Insurance. Installed galvanized siding + new mental roof on to help ward off wildfire damage.. A fire already ripped through our former town. We met 3 people not paid by their homeowners insurance, even 3 yrs later. I don't know if they were ever paid
Same here we own our home outright but wow, property taxes and insurance go up every year.
Cost of maintenance repairs is way up too. But, things would be worse if I was still paying the mortgage.
SPOT ON overall. The complainers never see the sacrifices home owners made to get into there homes. Sleeping in foxholes, Deploying to Combat-zones, frozen basements, automobiles, tents and never eating out and saying no to all our wants Today for the needs of the future. Imho. Blessings ❤
Home ownership is not what it is cracked up to be, especially in an older home.
Great video. Thank you, Josh.
Not sure this is correct information…CPI causes home Values to raise, which makes property tax & insurance to go up
States like Texas have seen large tax increases. I just moved out of Texas because my taxes & insurance was pushing 1650 a month
The other comment is on the basket and inflation and all that. Regarding inflation and CPI, one thing that intrigues me is to look at a zero inflation scenario / possibility in the very near future. While 'everyone' might think that's amazing, we'd still be stuck with current cost levels of food, real estate, etc. If eggs and milk went up from $3 to $5 one year and there's a high inflation (CPI) to take that into account - from an overall basket perspective, then a zero inflation for the next period would still have the price of eggs and milk at $5. I don't think everyone understands that. Prices don't go down unless there's negative inflation or deflation.
I think that eggs and milk are poor choices to determine inflation. From my experience in retail I know that those prices fluctuate a great deal. Eggs that are $5 today may be $2 a month from now. I actually had someone call the police and accuse me of price gouging because the eggs went up so much once. I just showed them my invoice to show the prices.
I believe the average retirement amount changes include both those who retired during that period and those who were retired during the full period. That means the increase is partly from wage increases and from SSA inflation adjustments. Not sure how this impacts the amounts, but it is possible that SSA inflation amounts are different than the numbers you calculated.
Just makes me feel good about doing an old school Josh!
Kinda boring👀
It’s actually reassuring. What it mainly means is that if you own your house free and clear, your increase in Social Security will cover the inflation increase in food.
But the SS increase is only covering food. What about everything else? Food is just 1 drop in the bucket and the COLA does not cover any of that. In retirement, if you do not have an adequate amount of investments, rising costs will eventually start to erode them.
Well the COLA is covering more than the food. Its just that the CPI figures use housing to compute inflation and they count housing as being 1/3 of the figure. If you own your house free and clear, then discounting that 1/3 from the CPI inflation figure means that your COLA will cover the increase in basically everything else. Of course I think it would depend on how much your benefit is too. That’s another reason I am waiting until 70 for my benefits.